Canara Bank Business Loan

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Canara Bank Business Loan

Canara Bank Business Loan Features

  Canara Bank Business Loan for MSMEs & Start-ups – 2020
Age Criteria Minimum 20 years & Maximum 50 years
Loan Amount Minimum Rs. 10 lakh & Maximum Rs. 200 lakh
Nature of Loan Term loan, working capital & Non-fund based limit
Purpose Working capital requirement & capital expenditure
Repayment Tenure From 1 year to 7 years
Security 50% of loan amount by way of land/building/securities/bank deposits/
Margin Minimum 20% – Term LoanMinimum 25% – Working Capital

Canara Bank is an Indian state-owned bank headquartered in Bangalore. It was established in 1906. Since December 2011,  the bank is operating its network of 3564 branches across India.  The bank has gained a premier position in the country with continuous profits since its inception.

Canara Bank provides loans for Business startups, SME Loans, and self-employed people running Software companies, IT sector, Traders, Manufacturers, Machinery, Equipment, and many more.

Interest Rate, Fees, and Charges (Self Emp Non-Professional)

Canara Bank Business Loan Interest Rate Table

Loan Amount (in ₹) Interest Rate on Short Term Loan (p.a) Interest Rate on Term Loan (p.a)
Micro Enterprises Small & Medium Entreprises Micro Enterprises Small & Medium Entreprises
Upto 50,000 BR + O.50% BR + 1% BR +1% BR + 1.50%
Above 50,000 Up to 2,00,000 BR + 2.50% BR + 3% BR + 2.50% BR + 2% – BR + 3%
Above 2,00,000 Up to 2,00,00,000 Graded rate of interest based on scoring norms and parameters Graded rate of interest based on scoring norms and parameters
BR + 1.50% to BR + 4.50% BR + 2.25% to BR + 5% BR + 1.75% to BR + 4.75% BR + 2.25% to BR + 5.75%
Above 2,00,00,000 Up to 10,00,00,000 Graded rate of interest based on Internal Credit Risk Rating BR+ 3.25% to 5.75% Plus applicable Term Premium
Above 10,00,00,000 Graded rate of interest based on External Credit Risk Rating BR+ 2.25% to 5.75% Plus applicable Term Premium

Advantages of Canara Bank Business Loan

  • No collateral is required for the maximum loan value of₹ 1 crore
  • Loans are disposed of within a reasonable time
  • Loans available for the highest value of ₹10 crores
  • Lower rate of interest

Canara Bank Business Credit Loan Eligibility

  • Self-employed individuals, Proprietors, Private Ltd. Co., and Partnership Firms involved in the business of Manufacturing, Trading, or Services.
  • Individuals who have been in the current business for a minimum of 3 years
  • The applicant should be at least 21 years at the time of applying for the loan and should be no older than 65 years at the time of loan maturity
Loan Amount Rs. 50,000/- to Rs.10,00,00,000/-
Tenure Maximum of 7 years
Canara Bank Business Loan Interest Rate 10.50% to 18%
Loan Processing Charges Up to 1% of the loan amount

Canara Bank Business Loan Documents Required

The following documents are required along with your Business Loan application:

  • PAN Card – For Company/Firm/Individual
  • A copy of any of the following documents as identity proof:
    • Aadhaar Card
    • Passport
    • Voter’s ID Card
    • PAN Card
    • Driving License
  • A copy of any of the following documents as address proof:
    • Aadhaar Card
    • Passport
    • Voter’s ID Card
    • Driving License
  • Bank statement of the previous 6 months
  • Latest ITR along with computation of income, Balance Sheet and Profit & Loss account for the previous 2 years, after being CA Certified/Audited
  • Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate)
  • Other Mandatory Documents [Sole Prop. Declaration or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)]

Business Loan EMI Calculator for Canara Bank

To speed up your EMI calculation use the Business Loan EMI Calculator. The calculator helps you get the real results in the minimum time. It eases the calculation and saves time. To get the result the user just needs to enter the loan amount, tenor, and the rate of interest in the calculator.

For Instance, If an entrepreneur takes a loan of₹90,00,000 for the tenure of 7 years at an interest rate of 9.25%, his EMI would be:

Table Showing EMI, Interest Outgo, and Total Repayment Amount

LOAN AMOUNT INTEREST RATE TENURE MONTHLY INSTALMENT TOTAL INTEREST AMOUNT TOTAL AMOUNT
₹ 90,00,000 9.25% 1 ₹ 7,88,107 ₹ 4,57,285 ₹ 94,57,285
₹ 90,00,000 9.25% 2 ₹ 4,12,196 ₹ 8,92,699 ₹ 98,92,699
₹ 90,00,000 9.25% 3 ₹ 2,87,246 ₹ 13,40,853 ₹ 1,03,40,853
₹ 90,00,000 9.25% 4 ₹ 2,25,035 ₹ 18,01,694 ₹ 1,08,01,694
₹ 90,00,000 9.25% 5 ₹ 1,87,919 ₹ 22,75,145 ₹ 1,12,75,145
₹ 90,00,000 9.25% 6 ₹ 1,63,349 ₹ 27,61,112 ₹ 1,17,61,112
₹ 90,00,000 9.25% 7 ₹ 1,45,946 ₹ 32,59,479 ₹ 1,22,59,479

Compare with Loan from other Banks

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Video: How to apply for Canara Bank Business Loan

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Purpose of Business Loan from Canara Bank

The most common reasons to take business loans are as follows

1. Expanding Operations

Buying land or leasing a property to expand business operations when you feel that your business has grown large enough and scaling up at this moment is an opportunity that you do not wish to forgo, a business based on its growth projections can go for expanding operations more than once.

2. Purchase Equipment

Technology has become a key driver in the information age of business, and since technology comes with a pre-set expiry date, there is always a demand to purchase or upgrade existing equipment and technology. Buying/leasing/replacing new equipment that will help improve the production or operations of the organization, alternatively the equipment can also be leased, it is best to conduct a cost-profit analysis to determine whether to buy or lease. The advantage of buying equipment is that depreciation can be claimed each year apart from the first-year tax exemptions.

3. Purchase of inventory

Most often small businesses would require immediate capital for the purchase of inventory stock or raw material. There may arise a situation where the demand for your product may be very high in the market. Businesses may not have the funds to get the raw materials to meet the rise in demand. This problem can be solved when individuals and entrepreneurs take loans to buy the inventory needed for production.

4. To increase working capital

Many times, small businesses and entrepreneurs may not have enough working capitals to run their day-to-day activities. They will take short term loans to their own assets to earn enough revenues to meet their operational needs.

EMIs of Several Banks and NBFCs for Different Tenures

EMI for different Business Loan amounts and tenures @ 8.65% interest rate

Total Loan Amount Loan Tenure
Loan Amount (Rs.) 10 years 15 years 25 years
2,500,000 ₹ 31,197 ₹ 24,839 20,384
5,000,000 ₹ 62,395 ₹ 49,678 40,768
7,500,000 ₹ 93,592 ₹ 74,516 61,152
10,000,000 ₹ 1.25 Lakh ₹ 99,355 81,536

Other Loan Products from Canara Bank

TABLE WILL APPEAR

Why should you apply for Canara Bank Business Loan at Dialabank

If you’re one of them those who’re looking for a business Loan then instead of visiting a different bank, step ahead to a Business Loan from DialaBank. Being a client here you will come to know how best the loan type would match your suitable.

Honestly, today no one has enough time to gather heavy information from different banks and lenders. Our Fintech platform will save you time and money. If services you’re getting grips no quality and satisfaction then for sure you won’t visit that particular platform again. The professionals at DialaBank understand the customer’s value and time. Before applying for a Business Loan let us give a chance to provide you with a better guideline.

How to calculate EMI for Canara Bank Business Loans?

Canara Bank Business Loan EMI Calculator is basically used for calculating EMI on a particular loan amount. You just have to enter the required loan amount, Chargeable interest rate, and the tenure in which you can repay the loan. Then the business loan EMI calculator will display all the information related to your EMI. You can know the overall interest amount you are going to pay on the loan after the expiration of the tenure.

Loan Amount ₹ 5,00,000
Interest Rate 15.00%
Tenure(Months) 60
Monthly Instalment (EMI) ₹ 11,895
Total Interest Amount ₹ 2,13,698
Total Amount (Principal + Interest) ₹ 7,13,698

Benefits of Canara Bank Business Loans

  • Get a loan of up to INR 70 Million.
  • Can be taken in the form of an overdraft or term loan according to your needs.
  • Available against completed residential properties and/or term deposits held with Canara Bank.
  • Simple documentation.

Canara Bank Business Loan Processing Time

Canara Bank Business Loan Preclosure

Business Loan Preclosure charges are 1% of the disbursed limit.

Pre Calculated EMI Table for Canara Bank Business Loan

Get monthly EMI as low as ₹ 2,683 per lakh on Canara Bank business loan. Business loan EMI in Canara Bank depends upon loan amount, loan tenure, interest rate, monthly salary, and a company that you work for.

Loan Amount 1 Year Loan 3 Year Loan 4 Year Loan
₹ 1 Lakh ₹ 8,932 ₹ 3,369 ₹ 2,683
₹ 5 Lakh ₹ 44,659 ₹ 16,847 ₹ 13,414
₹ 10 Lakh ₹ 89,317 ₹ 33,694 ₹ 26,828

How to Apply for Canara Bank Business Loan Online?

  1. Visit Dialabank
  2. Go to the loan section and click on the business loan link.
  3. The applicant will be directed to all details of the business Loan where they can choose their preferred options.
  4. Fill a user-friendly online application form for Canara Bank Business Loan.
  5. Please wait while our relationship manager gets in touch with you for further process.
  6. For more information and free guidance, you may call on 9878981166.

Canara Bank Business Loan Status

Overdraft: Minimise the risk of unplanned overdrafts. Improve your cash flow management with an option to access funds easily

DialabankCanara BankBusiness Loan Customer Care Number

Dialabank is the leading agent for availing HSBC’s Business Loan. You can apply online at Dialabank or give a call at +919878981166

Dialabank helps you to find the best option of Banks and NBFCs by providing you with a detailed market comparison of different banks so that you can make the right choice.

Canara Bank Business Loan FAQs

1. How to calculate Interest/EMI on Business Loan?

Once your loan specifics are finalized, there are loan EMI calculators available online which can be used to know your Interest and Principle breakdown each month and also keep track of the amount paid and the amount pending which can be useful when planning to repay the loan.

2. What is the Canara Bank business loan interest rate for existing customers?

For existing customers, if you have a good standing with Canara Bank and with good credit score and cashflows then you can negotiate better terms.

3. How to check Canara Bank’s business loan status?

You can check the Canara Bank business loan status by contacting the customer care number or if you already have an account can login to your account and check the status there. You can also check with your account manager if you have been allotted one.

4. What is the usual interest rates for business loans in India?

In India business loans usually range between 10% to 21%. It will vary from bank to bank based on the eligibility criteria defined by the bank.