Canara MSME Contractor MSME Contractor

What you get

• Working capital as a secured overdraft, above ₹25 lakh
• Bank guarantees and letters of credit for working capital needs
• Term loan above ₹25 lakh for brand new equipment or office premises
• No margin on working capital, 20% on term loans and guarantees
• Term loans up to 5 to 7 years including moratorium, depending on purpose

Who can apply

• Open to businesses in services.
• Micro, small and medium enterprises.
• Contractor or sub-contractor registered with the government agencies that award the work
• Operating account with Canara Bank registered with the agency for receiving contract payments
• No loss in the previous year
• Collateral of at least 50% of the loan, as land, land and building or approved financial securities
• Existing clients need good dealings with their current bankers. New clients bank only with Canara
• No takeover of loans from other banks, no second-hand equipment

How to apply

1. Use Apply Online on the scheme page, or fill in the NF998 MSME application at a branch

In person, nearest Canara Bank branch

In Kerala, any Canara Bank branch in Kerala, for contractors who receive contract payments into a Canara Bank account

Documents to keep ready

• Identity proof with the NF998 MSME application
• Address proof for the unit and the promoters
• Licences or permissions
• Accounts for the last 3 years with income tax returns, and projections
• Guarantor details with proof of assets
• Valuation report

Where we found this

• Canara MSME Contractor (external site) Official
• Canara Bank general schemes (external site) Official

An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.

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