Canara Bank Business Loan – A Credit to Hike Business

Business loans are the specialized loan product designed to meet the requirements of entrepreneurs and business owners. This loan product can be availed by the people who are willing to start up a new business or expand the existing one. It is very similar to personal loan because of the fact that they must be repaid in full by a certain time period, whether this be some sort of a repayment plan or a large lump sum payment. The amount disbursed under business loan can be utilized either to purchase new equipment needed, purchasing additional inventory or for any other business related purpose.

canara-bank

It is a unique product that is beneficial for Micro, Small & Medium sized enterprises. Most of the banks lend money to SME units and MSME units to grow and scale up their production under the MSME and SME loans. Canara Bank is one such bank that helps these units by offering them timely monetary assistance. Canara Bank business loan provides an aid to the business units to meet their financial objectives.

Features of Canara Bank Business Loan-

  • Disbursal of loan within time
  • Reasonable rate of interest
  • Multiple loan schemes to choose from
  • Right solutions for all your business requirements

Canara Bank Loan Schemes-

  • MSE Unnati
  • MSME Cap
  • MSME Vahan
  • MSE Vijeta
  • MSE Smart
  • Doctor’s Choice
  • Canara Trade
  • Canara Contractor Scheme
  • Canara Caravan
  • MSME Expo
  • Pradhan Mantri Mudara Yojana

The customers can select a specific business loan product as per their requirement as the bank has designed different loan plans for the different segments. The candidates can apply for a business loan by visiting the nearest branch office. The business loan service is available in all regional offices. The customer dealer will guide you regarding all the procedure.

Eligibility Criteria-

To avail the benefit of loan the customer has to meet the eligibility standards set by the bank. The bank evaluates the profile of the candidate before sanctioning the loan. The evaluation is done on the basis of certain parameters. The factors affecting the eligibility are as follows:

Factor Affecting Business Loan Eligibility

  • Loan Repayment track
  • Credit Performance / Credit Bureau Update
  • Debt servicing ability of the customer
  • Business Vintage
  • Financial Ratios
  • Existing relationship

Application Form-

The candidates have to fill the application form that is available at the bank branch. You can take the form from the customer care dealer. The form comprises of the following fields:

  • Personal Details
  • Occupational Details
  • Income and Banking Details
  • Loan Details
  • Additional Details regarding assets
  • Priority Sector Category
  • Documents Submitted

Documents Required-

The KYC documents required to be presented by the candidates are as mentioned below:

  • PAN Card – For Individual / Partnership Firm / Company
  • Identity Proof – Any one (e.g. Voter ID / Driving License / Passport / Aadhar Card)
  • Address Proof – Any one (e.g. Voter ID / Driving License / Passport / Telephone Bill / Electricity Bill / Registered Lease Deed or Sale Agreement / Bank Statement)
  • Ownership proof of either residence or office either in the name of applicant or jointly with family members
  • Business Continuity Proof – Any one document dated 5 years old (Bank Statement / Sales Tax Challans / IT Returns / Shops & Est. Certificate / Certificate of Incorporation / Partnership Deed)
  • Letter certifying end use of the business loan funds on Business Letterhead
  • Passport Size Photographs of all applicants and co-applicants

Financial Documents to be submitted according to the category:

Self-Employed Individuals / Sole Proprietorships

  • Latest audited ITR and financials for the last 2 years. (Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.)
  • Bank statements from the borrower’s main account/s for last 6 months and 3 months of all other bank accounts mentioned in the Balance Sheet

For Self-Employed Professionals

  • Latest audited ITR and financials for the last 2 years. (Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.)
  • Bank statements from the borrower’s main account/s for last 6 months and 3 months of all other bank accounts mentioned in the Balance Sheet
  • Professional Qualification Certificate and Degree Certificate for professionals. (Doctors, Architects, Chartered Accountants etc.)

For Partnership Firms / Private Limited Companies

  • Latest audited ITR and financials for the last 2 years. (Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.)
  • Bank statements from the main account/s for last 6 months and 3 months of all other bank accounts mentioned in the Balance Sheet
  • Partnership Deed and partnership authority letter for partnership firms
  • Memorandum and Articles of Association and Board Resolution from the company
  • Certificate of Incorporation (COI) for companies
  • Latest shareholding patterns for Private Ltd. / Public Ltd. companies
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