Posts Tagged ‘Canara Bank Mudra Loan’

Canara Bank Mudra Loan

India’s other bank Canara bank mudra loan is also offering the Mudra scheme. Canara bank is the oldest bank of India It was established in Mangalore in 1906 by Ammembal Subba Rao Pai and its head office is in Bangaluru, Karnataka.

Canara Bank is offering all three categories under the Mudra loan scheme according to the Mudra loan policy.

Category of Canara bank Mudra loan is

• SHISHU Loan upto Rs. 50,000/-
• KISHORE Loan Amount from 50,001 to 5,00,000/-
• TARUN Loan Amount from 5,00,001 to 10,00,000/-

Canara Bank eligibility.

Every bank has its own terms & policy, please check the eligibility of Canara Bank mudra loan below:-

1. Existing customers with satisfactory track record for last 2 years (both conduct of account with financing branch and financials of the applicant unit)
2. New customers subject to satisfactory OPL from their existing bankers
3. New units subject to satisfactory market opinion on the promoters
4. Only Individuals/Proprietorship/partnerships/SHGs are eligible for finance under the scheme.
   a. Private limited company, HUF and Trusts are not eligible.
   b. Units whose Risk rating is High and/or grading as per scoring norms is Higher/Highest are not eligible.

Margin critaria to get canara bank Mudra loan.

Up to Rs.25000/- Nil
Above Rs.25000/- 15% to 25% (30% margin in case of book debt held as prime security)

How much security require to get Canara bank mudra loan?

Prime security:-
Assets created out of loan – Hypothecation of movable assets and/or Mortgage of immovable property and Existing business assets of the borrower only.

Collateral security/ Third party guarantee:-
NIL
All such eligible loans are to be mandatorily covered under Credit Guarantee Fund Scheme for Micro and Small Enterprises.
Note: As per prevailing guidelines loans/advances to traders, educational institutions are not eligible for cover under CGMSE.

What is the processing free of Canara Bank Mudra Loan?

Processing Charges / Upfront fee

Up to Rs.5 lakhs Nil
Above Rs.5 lakhs As per prevailing guidelines.

What is the interest charges of Canara Bank Mudra Loan?

Because it is an MSME loan & As per prevailing guidelines on the interest rate for loans under MSME. Right now there is no online facility or calculator to check Canara Bank Mudra loan EMI or interest.

How can apply Canara Bank Mudra Loan?

The applicant is required to fill out the application as per Banks Performa and apply at the nearest Bank Branch with the required documents as per the checklist. Click here to get Bank performa online and Canara Bank is not providing an online facility to apply for Canara Bank mudra loan online.

Is startups can apply for Canara Bank Mudra Loan?

Yes, any individual startups or startups firm can apply for a Canara bank Mudra loan under the Mudra startups scheme. The terms and conditions will be the same.

Which kind of Documents are require for Canara Bank Mudra Loan?

(The checklist is only indicative and not exhaustive and depending upon the local requirements at different places addition could be made as per necessity)
CHECKLIST: SHISHU

1. Proof of identity – Self certified copy of Voter’s ID card / Driving License / PAN Card / Aadhaar Card/Passport/Photo Ids issued by Govt. authority etc.
2. Proof of Residence – Recent telephone bill, electricity bill, property tax receipt, Voter’s ID card, Aadhaar Card, Passport of Individual/ Proprietor/Partners, Certificate issued by Govt. Authority/ Local Panchayat / Municipality etc.
3. Applicant’s Recent Photograph (2 copies) not older than 6 months.
4. Proof of SC/ST/OBC/Minority, if applicable.
5. Proof of Identity / Address of the Business Enterprise –if available.
6. Statement of Account from the existing Banker for the last six months, if any.
7. Quotation of Machinery / other items to be purchased.

CHECKLIST: KISHORE & TARUN:
1) Proof of identity – Self-certified copy of Voter’s ID card / Driving License / PAN Card / Aadhar Card/Passport.
2) Proof of Residence – Recent telephone bill, electricity bill, a property tax receipt (not older than 2 months), Voter’s ID card, Aadhar Card & Passport of Proprietor/Partners/Directors.
3) Proof of SC/ST/OBC/Minority.
4) Proof of Identity/Address of the Business Enterprise -Copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity and address of the business unit.
5) Applicant should not be a defaulter in any Bank/Financial institution.
6) Statement of accounts (for the last six months), from the existing banker, if any.
7) Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).
8) Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
9) Sales achieved during the current financial year up to the date of submission of application.
10) Project report (for the proposed project) containing details of technical & economic viability.
11) Memorandum and articles of association of the company/Partnership Deed of Partners etc.

12) In absence of a third-party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net worth.
13) Photos (two copies) of Proprietor/ Partners/ Directors.

Few conman FAQs related to Canara Bank Mudra Loan

Q. What is MUDRA?
MUDRA stands for “Micro Units Development and Refinance Agency” and acts as a new financial entity for developing and Refinancing financial intermediaries like Bank, NBFCs, MFIs, who are in the business of lending to smaller Microenterprises in the Manufacturing, Trading, and Services sector including allied agricultural activities.

Q. When was the MUDRA scheme launched?
The Micro Units Development and Refinance Agency (MUDRA) has been launched by the Hon’ble Prime Minister on 08.04.2015

Q. Is the overdraft facility of up to Rs 5000/ covered in the MUDRA scheme?
Yes, Overdraft facility of Rs. 5000/-sanctioned under Pradhan Mantri Jan Dhan Yojana (PMJDY) is also considered as MUDRA loans under PMMY.

Q. Are all the loans are covered under Credit Guarantee Scheme?
All eligible PMMY loans are covered under Credit Guarantee Fund for Micro Units (CGFMU). (All MSE loans under the Manufacturing /Services sector including retail trade and loans for allied agricultural activities are eligible to be covered under the credit guarantee fund.

Q. Is all the MUDRA A/c holders eligible for MUDRA Cards?
YES, All CC/OD Accounts (MUDRA Loans) are eligible for issuance of MUDRA CARDS.

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