Canara Bank Project Loans - Business Growth Funding

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Key Features of Canara Bank Project Loans

Purpose: Designed to finance various project-related needs, such as setting up new units, expanding existing businesses, or meeting working capital requirements for projects. Specific schemes like Canara MSME CAP, Canara Udyog, Canara Vyapar, and Canara Smart Professionals support projects involving the purchase or construction of office premises, acquisition of machinery, equipment, furniture, fixtures, and modernization or expansion of existing units. Loans can also be used for specific project purposes, such as purchasing earth-moving or construction equipment (e.g., MSME CAN BEML) or financing GST-related working capital needs (Canara GST).
Loan Amount: Loan amounts vary based on the scheme and project requirements:
- Up to ₹10 lakh under schemes like MUDRA Loans (Shishu, Kishor, Tarun variants).
- Higher amounts are available under MSME schemes, subject to the project cost and borrower’s eligibility, often calculated as a percentage of the project cost or based on income/security provided.

- Loan Amount: Varies based on the project’s requirements and the bank’s assessment. For specific schemes like CBG projects, the loan amount is tailored to cover term loans, working capital, and non-fund-based limits.
- Security and Collateral: Primary Security: Hypothecation of project assets (e.g., stocks, receivables, machinery) and mortgage on project land. Collateral Security: Minimum 25% collateral in the form of liquid security or real estate. However, if the realizable value of the mortgaged land and building exceeds 110% of the total exposure, no additional collateral is required. For land acquisition, the loan amount cannot exceed 50% of the overall term loan, with a minimum 50% margin on the total land cost (including registration fees).
- Charges and Fees: Processing Fees: Applicable, though specific rates are not detailed in the provided information. For comparison, personal loans from PNB have processing fees of up to 1%, suggesting similar charges may apply. Other Charges: Charges may apply for non-fund-based facilities like guarantees or letters of credit, subject to bank guidelines.
- Eligibility: Available to businesses, including medium and small enterprises, for viable projects. Specific schemes (e.g., CBG loans) may have tailored eligibility criteria, such as compliance with SATAT guidelines for sustainable projects.
- Repayment: Flexible repayment schedules aligned with project cash flows. For term loans, repayment can extend up to 12 years, with moratorium benefits during the construction and initial operational phases.
- Additional Features: Escrow Accounts: Exclusive charge over project cash flows, assets, and escrow accounts to secure repayments. Commercial Agreements: Charges may be created over project-related agreements to ensure financial discipline. Online Application: PNB’s WebLenS platform allows for seamless online loan applications, enhancing accessibility.
- Interest Rates: Competitive interest rates, typically linked to the Repo Linked Lending Rate (RLLR) or Marginal Cost of Funds Based Lending Rate (MCLR). Rates vary based on the scheme, collateral, and credit guarantee coverage. For example: A 0.25% concession is offered for accounts covered under the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) - Specific rates for business loans range from RLLR + 1.40% to RLLR + 6.40%, depending on whether there is a salary tie-up with the bank. Interest is calculated on a reducing balance basis, reducing the overall interest burden over the loan tenure. Specific rates for MSME loans are not detailed in the results, but they are described as "attractive" and competitive.
- Repayment Tenure: Flexible repayment periods, typically ranging from 12 months to 5 years for MSME and MUDRA loans, depending on the scheme and loan amount. For larger project loans, repayment tenure may extend based on the project’s cash flow and borrower’s repayment capacity, with some schemes allowing up to 7 years (e.g., certain business loan schemes). No prepayment penalties for most schemes, allowing borrowers to repay early without additional costs.
- Security/Collateral: Security requirements vary by scheme: Collateral-free loans are available under schemes covered by the CGTMSE, requiring no additional security if the realizable value of primary security (e.g., machinery or property) exceeds 100% of the loan amount. Other schemes may require a mortgage of immovable property, hypothecation of machinery/equipment, or financial securities (e.g., fixed deposits, LIC policies). For specific schemes like Canara MSME Gold Loan, gold ornaments or specially minted gold coins serve as collateral. Personal guarantees or co-obligation from proprietors, partners, or directors may be required.
- Processing Fees: Minimal processing fees, typically 0.25% to 1% of the loan amount, with caps (e.g., minimum ₹500, maximum ₹10,000, plus GST). Certain schemes, such as Canara MSME CAP, may offer concessions or waivers during promotional periods (e.g., Retail Loan Festival). Documentation charges and other fees may apply, but these are kept nominal to ensure affordability.
- Eligibility Criteria: Target groups include MSMEs (micro, small, and medium enterprises) engaged in manufacturing or service sectors, professionals (e.g., architects, CAs, engineers), and proprietors/partners of registered businesses. Applicants must be Udyam registered for MUDRA loans and have a satisfactory credit history. Age criteria: Typically between 25 and 55 years for MUDRA loans; for other schemes, the maximum age at loan maturity is often 60–65 years. Income requirements: Vary by scheme, but generally, a stable income or average balance (e.g., ₹50,000/month for certain loans) is required. Existing customers with satisfactory dealings or new creditworthy customers introduced properly are eligible.
- Application Process: Applications can be submitted online (e.g., via Canara Bank’s website or Ai1 app for certain schemes like MUDRA Shishu loans) or at a Canara Bank branch. Straight-through-Processing (STP) ensures quick disbursement, often 24/7, for pre-approved loans like Canara Ready Cash. Required documents include: KYC documents (PAN, Aadhaar, Voter ID, etc.) Proof of residence and business (GST registration, balance sheets, etc.) Project-specific documents (e.g., project report, cost estimates, or purchase agreements). Digital documentation via Aadhaar-enabled OTP for e-stamping and e-signing may be used for faster processing.
- Special Features: Non-fund-based facilities: Schemes like Canara GST offer letters of credit or bank guarantees as part of the loan package to support project-related procurement or advance payments. Takeover of loans: Project loans can be used to take over existing loans from other banks, subject to Canara Bank’s guidelines. Promotional offers: Periodic waivers of processing fees (e.g., during Retail Loan Festivals) or concessions for specific customer segments (e.g., Canara SB Premium Payroll package holders). Customized schemes: Tailored products like Doctor’s Choice for medical professionals or Canara Smart Professionals for architects and engineers cater to specific project needs.
- Disbursement and Monitoring: Quick disbursement, often within 2–7 days from submission of complete documents, depending on the scheme. For project loans, funds may be disbursed in stages based on project milestones (e.g., equipment purchase or construction phases). The bank may require periodic progress reports or site visits to ensure funds are used for the intended purpose.

Benefits of Canara Bank Project Loans

Flexible Financing for Diverse Needs: Supports a wide range of project-related expenses, including purchasing machinery, equipment, furniture, fixtures, or constructing/renovating business premises. Covers working capital needs, GST-related expenses (e.g., via Canara GST), or specialized requirements like earth-moving equipment (e.g., MSME CAN BEML). Enables funding for new projects, modernization, or expansion, catering to MSMEs, professionals, and businesses.
Competitive and Affordable Interest Rates: Offers attractive rates linked to RLLR or MCLR, with concessions (e.g., 0.25% for CGTMSE-covered loans or salary tie-up accounts). Interest calculated on a reducing balance basis lowers the overall cost of borrowing. Promotional offers, like fee waivers during Retail Loan Festivals, enhance affordability.

- Collateral-Free Options: Loans under schemes like CGTMSE require no additional collateral if the primary security (e.g., machinery or property) covers 100% of the loan amount.
- Flexible Repayment Terms: Repayment tenures range from 12 months to 5–7 years, depending on the scheme and project cash flow, allowing manageable EMIs.
- Quick and Hassle-Free Processing: Fast disbursal, often within 2–7 days, with Straight-through-Processing (STP) for pre-approved loans. Online application options and digital documentation streamline the process.
- High Loan Quantum: Loan amounts tailored to project needs, from ₹10 lakh (MUDRA Loans) to higher limits based on project cost or collateral value.
- Minimal Processing Fees: Low fees (0.25%–1% of loan amount, with caps like ₹500 minimum and ₹10,000 maximum, plus GST) keep costs affordable. Periodic waivers or concessions further reduce upfront expenses.
- Support for Business Growth: Facilitates project execution, helping businesses scale operations, enter new markets, or improve efficiency through modernization. Non-fund-based facilities support procurement for projects.
- Tailored Schemes for Specific Needs: Specialized products like Doctor’s Choice, Canara Smart Professionals, or Canara MSME Gold Loan (using gold as collateral) cater to niche project requirements.
- Enhanced Accessibility: Available to a wide range of applicants, including MSMEs, professionals, and registered businesses, with straightforward eligibility criteria (e.g., Udyam registration, satisfactory credit history).

How to Apply for Canara Bank Project Loans

1. Determine Eligibility
- Ensure you meet the eligibility criteria for the relevant scheme:
- Target Applicants: MSMEs, professionals (e.g., doctors, architects, engineers), proprietors, or registered businesses engaged in manufacturing or services.
- Udyam Registration: Mandatory for MUDRA and most MSME loans.
- Age: Typically 25–55 years (or up to 60–65 years at loan maturity, depending on the scheme).
- Credit History: Satisfactory track record with no defaults.
- Income/Business Stability: Stable income or average balance (e.g., ₹50,000/month for some schemes) and valid business proofs (e.g., GST registration).
- Existing Canara Bank customers or new creditworthy applicants introduced properly are eligible.
2. Choose the Appropriate Loan Scheme
- Select a scheme based on your project needs:
- Canara MSME CAP: For purchasing or constructing business premises, acquiring machinery, or modernization.
- Canara Udyog/Vyapar: For manufacturing or trading businesses undertaking projects.
- MUDRA Loans: For micro-enterprises (Shishu: up to ₹50,000; Kishor: ₹50,000–₹5 lakh; Tarun: ₹5 lakh–₹10 lakh).
- Canara Smart Professionals: For professionals like architects or engineers.
- Canara GST: For GST-related working capital needs.
- MSME CAN BEML: For purchasing earth-moving or construction equipment.
- Contact a Canara Bank branch or visit their website (canarabank.com) to confirm the best scheme for your project.
3. Gather Required Documents
- Prepare the following documents (may vary by scheme):
- KYC Documents: PAN card, Aadhaar, Voter ID, passport, or driving license.
- Proof of Residence: Utility bills, rental agreement, or Aadhaar.
- Business Proof: Udyam registration certificate, GST registration, partnership deed, or company registration documents.
- Financial Documents: Last 2–3 years’ balance sheets, ITRs, bank statements (6–12 months), or profit/loss statements.
- Project-Specific Documents: Detailed project report, cost estimates, quotations for equipment/machinery, or construction plans.
- Collateral Documents (if applicable): Property papers, valuation reports, gold ornaments (for Canara MSME Gold Loan), or financial securities (e.g., LIC policies, fixed deposits).
- Others: Passport-size photographs, loan application form, and any additional documents specified by the bank (e.g., personal guarantee forms).
- For digital applications, ensure Aadhaar-linked mobile number for OTP-based e-signing.
4. Choose Application Method
- Online Application:
- Visit Canara Bank’s official website (canarabank.com) or download the Canara Ai1 app (available for iOS/Android).
- Navigate to the loan section and select the relevant scheme (e.g., MUDRA Shishu loans can be applied via the app).
- Fill out the online application form with personal, business, and project details.
- Upload scanned copies of required documents.
- Use Aadhaar OTP for e-stamping/e-signing (if applicable) to complete the process digitally.
- Offline Application:
- Visit the nearest Canara Bank branch.
- Request the loan application form for the desired scheme (e.g., MSME or business loan).
- Submit the filled form along with physical copies of all required documents.
- Branch staff may assist in verifying documents and explaining scheme-specific requirements.
5. Submit Application and Pay Fees
- Submit the completed application (online or at the branch).
- Pay the processing fee, typically 0.25%–1% of the loan amount (e.g., minimum ₹500, maximum ₹10,000, plus GST). Some schemes may offer waivers during promotional periods (e.g., Retail Loan Festival).
- Retain the acknowledgment receipt or application reference number for tracking.
6. Verification and Approval
- The bank will verify your documents, assess your creditworthiness, and evaluate the project’s feasibility (e.g., through project reports or site visits for larger loans).
- If covered under CGTMSE, no additional collateral is needed, speeding up approval.

Eligibility Criteria for Canara Bank Project Loans

1. Applicant Type
- MSMEs: Micro, Small, and Medium Enterprises engaged in manufacturing, trading, or service activities (as defined under the MSME Development Act).
- Professionals: Individuals such as doctors, architects, engineers, chartered accountants, or other qualified professionals (e.g., eligible for schemes like Canara Smart Professionals or Doctor’s Choice).
- Business Entities: Proprietors, partnership firms, private/public limited companies, or registered trusts undertaking project-related activities.
- Others: Contractors or businesses requiring specific equipment (e.g., eligible for MSME CAN BEML for earth-moving/construction equipment).
2. Udyam Registration
- Mandatory for MUDRA Loans and most MSME schemes.
- Applicants must have a valid Udyam Registration Certificate to confirm MSME status.
3. Age Criteria
- Minimum Age: Typically 25 years at the time of application (specific to MUDRA and certain MSME schemes).
- Maximum Age: Generally 55–65 years at the time of loan maturity, depending on the scheme (e.g., 60 years for MUDRA Loans, extendable for other business loans based on repayment capacity).
4. Credit History
- Satisfactory credit track record with no defaults or adverse CIBIL scores.
- Existing Canara Bank customers with a history of satisfactory dealings are preferred, though new creditworthy applicants introduced properly are also eligible.
5. Business/Income Stability
- Business Vintage: For MSME and business loans, the business should typically be operational for at least 1–2 years with stable financials (may vary by scheme).
- Income Requirements: Stable income or average balance, e.g., ₹50,000/month for certain schemes like Canara Ready Cash or business loans.
- Financial Documents: Submission of last 2–3 years’ balance sheets, Income Tax Returns (ITRs), profit/loss statements, or bank statements (6–12 months) to demonstrate repayment capacity.
6. Project Feasibility
- The proposed project must be viable, with a detailed project report outlining objectives, cost estimates, and expected returns.
- Projects should align with the purpose of the loan scheme (e.g., purchasing machinery, constructing premises, or meeting working capital needs).
7. Collateral/Security
- For collateral-free loans (e.g., under CGTMSE coverage), the realizable value of primary security (e.g., machinery, property) must cover 100% of the loan amount.
- For other schemes, applicants must provide acceptable collateral, such as:
  - Immovable property (mortgage).
  - Hypothecation of machinery/equipment.
  - Financial securities (e.g., fixed deposits, LIC policies).
  - Gold ornaments (for Canara MSME Gold Loan).
  - Personal guarantees or co-obligation from proprietors, partners, or directors may be required.
8. Bank Relationship
- Existing Canara Bank account holders with satisfactory transactions (e.g., salary accounts, savings accounts, or business accounts) may receive preferential treatment.
- New customers must provide proper introductions or references, as per bank guidelines.
9. Specific Scheme Requirements
- MUDRA Loans: For micro-enterprises with loan needs up to ₹10 lakh (Shishu, Kishor, Tarun categories). Primarily for non-agricultural income-generating activities.
- Canara GST: For businesses registered under GST, requiring working capital or non-fund-based facilities (e.g., letters of credit).
- Doctor’s Choice: For registered medical practitioners (MBBS or higher qualifications) undertaking projects like clinic/hospital setup.
- Canara Smart Professionals: For professionals like architects, engineers, or CAs with valid professional qualifications.
- MSME CAN BEML: For contractors or businesses purchasing BEML-manufactured earth-moving/construction equipment.
10. KYC and Legal Compliance
- Valid KYC documents: PAN card, Aadhaar, Voter ID, passport, or driving license.
- Proof of residence: Utility bills, rental agreement, or Aadhaar.
- Business registration documents: GST certificate, partnership deed, or company incorporation certificate.
- No legal disputes or encumbrances on collateral offered.

Documents Required for Canara Bank Project Loans

1. Application Form
Duly filled and signed loan application form specific to the chosen scheme (available at Canara Bank branches or online via canarabank.com or the Canara Ai1 app).
2. KYC Documents (for applicant and co-applicant/guarantor, if applicable)
Identity Proof: PAN card, Aadhaar card, Voter ID, passport, or driving license.
Address Proof: Aadhaar card, utility bills (electricity/water), rental agreement, or passport.
Passport-size photographs (2–4, depending on the scheme).
3. Business Proof
Udyam Registration Certificate: Mandatory for MUDRA Loans and most MSME schemes.
GST Registration Certificate: Required for schemes like Canara GST or businesses registered under GST.
Business Registration Documents: Partnership deed, Memorandum and Articles of Association (for companies), or trust deed (for trusts).
Shop and Establishment License: Or other relevant licenses, if applicable.
Professional Qualification Certificates: For schemes like Doctor’s Choice (e.g., MBBS certificate) or Canara Smart Professionals (e.g., engineering/architecture degree).
4. Financial Documents
Income Tax Returns (ITRs): Last 2–3 years for the applicant/business.
Balance Sheets and Profit/Loss Statements: Last 2–3 years, audited if applicable, for the business.
Bank Statements: Last 6–12 months of the business or applicant’s account (preferably Canara Bank account).
Projected Financials: For the proposed project, showing revenue and repayment capacity (may be part of the project report).
5. Project-Specific Documents
Detailed Project Report: Outlining project objectives, cost estimates, timeline, and expected returns.
Quotations/Invoices: For machinery, equipment, furniture, or other assets to be purchased.
Construction Documents (if applicable): Approved building plan, ownership documents, or construction cost estimates for premises.
Purchase Agreements: For equipment or assets (e.g., BEML equipment for MSME CAN BEML scheme).
GST Input Tax Credit Details: For Canara GST scheme, if applicable.
6. Collateral/Security Documents (if applicable)
Property Documents: Title deed, sale agreement, encumbrance certificate, property valuation report, and approved layout plan (for mortgage-based loans).
Hypothecation Documents: Details of machinery/equipment to be hypothecated.
Financial Securities: Fixed deposit receipts, LIC policy documents, or other approved securities.
Gold Ornaments: For Canara MSME Gold Loan, with valuation certificate from a bank-approved jeweler.
Personal Guarantee Documents: KYC and net worth statement of guarantors (proprietors, partners, or directors).
7. Other Documents
Existing Loan Details: Sanction letter, repayment schedule, or statement of account for loans being taken over (if applicable).
Non-Fund-Based Facility Documents: For schemes like Canara GST, details for letters of credit or bank guarantees.
Aadhaar-Linked Mobile Number: For digital applications requiring OTP-based e-stamping or e-signing.
Board Resolution: For companies or trusts, authorizing the loan application.
Credit History Report: CIBIL or equivalent credit score report, if requested by the bank.

Factors Considered for Canara Bank Project Loans

1. Applicant Profile
Type of Applicant: MSMEs, professionals (e.g., doctors, architects, engineers), proprietors, partnership firms, or companies. The applicant’s business or professional status impacts scheme eligibility (e.g., Doctor’s Choice for medical professionals, Canara Smart Professionals for engineers).
Business Vintage: Typically, businesses should be operational for 1–2 years with stable financials, though startups may qualify under schemes like MUDRA with a strong project plan.
Udyam Registration: Mandatory for MSME and MUDRA loans to confirm micro, small, or medium enterprise status.
Creditworthiness: A satisfactory track record with no defaults and a good CIBIL score is essential for approval.
2. Creditworthiness
Credit History: A satisfactory track record with no defaults and a good CIBIL score is essential for approval.
Existing Bank Relationship: Existing Canara Bank customers with satisfactory dealings (e.g., savings, salary, or business accounts) may receive faster processing or preferential terms.
Financial Stability: Stable income or average balance (e.g., ₹50,000/month for some schemes) and strong financials (e.g., ITRs, balance sheets) demonstrate repayment capacity.
3. Project Viability
Project Report: A detailed report outlining objectives, cost estimates, timeline, and expected returns is critical. The project must be technically feasible and financially viable.
Purpose Alignment: The project should align with the scheme’s purpose, such as purchasing machinery, constructing premises, or meeting working capital needs (e.g., Canara GST for GST-related expenses).
Revenue Potential: The bank assesses the project’s ability to generate sufficient cash flow to service the loan.
4. Loan Amount and Security
Loan Quantum: Determined by project cost, applicant’s repayment capacity, and collateral value. Ranges from ₹10 lakh (MUDRA Loans) to higher amounts for larger projects.
Collateral/Security:
- Collateral-Free Loans: Available under CGTMSE if primary security (e.g., machinery) covers 100% of the loan amount.
- Secured Loans: Require immovable property, hypothecation of assets, gold ornaments (for Canara MSME Gold Loan), or financial securities (e.g., fixed deposits, LIC policies).
- Guarantees: Personal or third-party guarantees from proprietors, partners, or directors may be required.
- Security Valuation: The realizable value of collateral significantly influences the loan amount and approval.
5. Interest Rates and Costs
Interest Rates: Linked to RLLR or MCLR, ranging from RLLR + 1.40% to RLLR + 6.40%, with concessions (e.g., 0.25% for CGTMSE coverage or salary tie-ups). Competitive rates affect affordability.
Processing Fees: Typically 0.25%–1% of the loan amount (min ₹500, max ₹10,000, plus GST), with possible waivers during promotional periods (e.g., Retail Loan Festival). Lower costs improve loan attractiveness.
Other Charges: Documentation or inspection fees may apply, impacting the total cost of borrowing.
6. Repayment Capacity and Tenure
Repayment Tenure: Ranges from 12 months to 5–7 years, based on the scheme and project cash flow. Flexible tenures ensure manageable EMIs.
Debt Service Coverage Ratio (DSCR): The bank evaluates the applicant’s ability to cover loan repayments through project revenues or other income sources.

Frequently Asked Questions (FAQs)

1. What are Canara Bank project loans?

Canara Bank offers project financing through MSME, MUDRA, and business loan schemes to support activities like setting up new business units, expanding existing operations, purchasing machinery/equipment, constructing premises, or meeting working capital needs. Examples include Canara MSME CAP, Canara Udyog, Canara GST, and MUDRA Loans.

2. Who is eligible for a project loan?

Eligible Applicants: MSMEs, professionals (e.g., doctors, architects, engineers), proprietors, partnership firms, or companies engaged in manufacturing, trading, or services.
Age: Typically 25–55 years (up to 60–65 years at loan maturity, depending on the scheme).
Udyam Registration: Mandatory for MSME and MUDRA loans.
Credit History: Satisfactory track record with no defaults.
Business Stability: Stable income or average balance (e.g., ₹50,000/month for some schemes) and 1–2 years of business operations (startups may qualify with a strong project plan).

3. What types of projects can be financed?

Projects include:
- Setting up new manufacturing or service units.
- Expanding or modernizing existing businesses.
- Purchasing machinery, equipment, or furniture (e.g., BEML equipment under MSME CAN BEML).
- Constructing or renovating business premises.
- Meeting working capital needs, including GST-related expenses (e.g., Canara GST).
- Specific professional projects (e.g., clinic setup under Doctor’s Choice).

4. What is the loan amount I can get?

Loan amounts vary by scheme:
- MUDRA Loans: Up to ₹10 lakh (Shishu: ₹50,000; Kishor: ₹50,000–₹5 lakh; Tarun: ₹5 lakh–₹10 lakh).
- MSME/Business Loans: Higher amounts based on project cost, repayment capacity, and collateral value (no specific upper cap mentioned).
The loan quantum is typically a percentage of the project cost or linked to the realizable value of security.

5. What are the interest rates for project loans?

Interest rates are competitive and linked to the Repo Linked Lending Rate (RLLR) or Marginal Cost of Funds Based Lending Rate (MCLR).
Rates range from RLLR + 1.40% to RLLR + 6.40%, with concessions (e.g., 0.25% for CGTMSE-covered loans or salary tie-ups).
Interest is calculated on a reducing balance basis, and specific rates vary by scheme. Check canarabank.com or a branch for current rates.

6. Are collateral-free project loans available?

Yes, loans under the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) are collateral-free if the primary security (e.g., machinery, property) covers 100% of the loan amount.
Other schemes may require collateral like property, hypothecated assets, gold ornaments (for Canara MSME Gold Loan), or financial securities (e.g., fixed deposits, LIC policies).

7. What documents are required to apply?

- Application Form: Duly filled scheme-specific form.
- KYC Documents: PAN, Aadhaar, Voter ID, passport, or driving license; address proof (utility bill, rental agreement); passport-size photos.
- Business Proof: Udyam certificate, GST registration, partnership deed, or company incorporation documents.
- Financial Documents: ITRs, balance sheets, profit/loss statements (last 2–3 years), bank statements (6–12 months).
- Project Documents: Detailed project report, quotations/invoices for equipment, construction plans, or purchase agreements.
- Collateral Documents (if applicable): Property papers, valuation reports, gold ornaments, or financial securities.
- Others: Personal guarantee documents, existing loan details (for takeovers), or professional certificates (e.g., MBBS for Doctor’s Choice).

8. How can I apply for a project loan?

Online: Visit canarabank.com or download the Canara Ai1 app (iOS/Android). Fill out the application form, upload documents, and use Aadhaar OTP for e-signing (e.g., for MUDRA Shishu loans).
Offline: Visit a Canara Bank branch, collect the application form, and submit it with physical copies of documents.
Processing fees (0.25%–1% of loan amount, min ₹500, max ₹10,000, plus GST) may apply, with possible waivers during promotions.

9. How long does it take to get a project loan approved?

Approval typically takes 2–7 days from submission of complete documents, depending on the scheme, loan size, and verification process.
Pre-approved loans (e.g., Canara Ready Cash) with Straight-through-Processing (STP) may be disbursed faster, often 24/7.

10. What is the repayment tenure for project loans?

Repayment periods range from 12 months to 5–7 years, depending on the scheme, project cash flow, and loan amount.
Flexible EMIs are tailored to repayment capacity, and no prepayment penalties apply for most schemes, allowing early repayment.

11. Can I get a project loan to take over an existing loan?

Yes, certain schemes allow loan takeovers from other banks, subject to Canara Bank’s guidelines. Provide the existing loan’s sanction letter, repayment schedule, and statement of account.

12. What are the processing fees and other charges?

Processing Fees: 0.25%–1% of the loan amount (min ₹500, max ₹10,000, plus GST), with possible waivers during promotional periods (e.g., Retail Loan Festival).
Other Charges: Documentation fees, inspection charges, or collateral valuation fees may apply, but these are kept nominal.

13. Can I apply for a project loan if I’m a new customer?

Yes, new creditworthy customers can apply, provided they meet eligibility criteria and provide proper introductions or references as per bank guidelines. Existing Canara Bank customers may get faster processing.

List of Canara Bank Project Loans

Canara Bank MSME CAP
Canara Bank Udyog
Canara Bank Vyapar
Canara Bank MSME Loan for Post-shipment Credit to Exporters

Canara Bank GST
Canara Bank MSME Bank CAN BEML
Canara Bank MSME Gold Loan
Canara Bank Caravan

Canara Bank Smart Professionals
Canara Bank MUDRA Loans (Shishu, Kishor, Tarun)
Canara Bank Overdraft for Manufacturing Units

Canara Bank MSME Expo
Canara Bank MSME Star
Canara Bank Contractor’s Scheme
Canara Bank Doctor’s Choice

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