Canara Bank Business Loan

4.5
Canara Bank was founded by Shri. Late Ammembal Subbarao Pai in July 1906. The bank was founded in Mangalore in Karnataka and has evolved into one of the foremost Indian banking institutions today. Post nationalization in 1969, Canara Bank has diversified rapidly into several business segments.

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Canara Bank Business Loan

Interest Rate

9.5% - 11.55%

Loan Amount

₹50K - ₹20Cr

EMI Per Lakh

₹2,100 - ₹2,202

Processing Fees

Up to 75% of applicable charges

Pre-Payment Charges

0.25% per lakh or part there of with a minimum of Rs. 500 or 1% of the loan amount

Features & Benefits of Canara Bank Business Loan

Canara bank is one of the leading organisations  in the banking sector of India. Established in 1906, the main headquarters of the bank is located in Bangalore. Further, since its inception, the bank has grown and expanded to over 3500 branches in several locations across India.

Canara bank has a rich history of continuous progress and profit making ability, which has allowed it to establish itself as one of the premiere financial service providers in the country. Leveraging deep industry experience and advanced technology, the organisation has been able to provide world-class services to their customers. They also provide cleverly designed business loans for business startups, SME loans, self-employed businesses, software companies, the IT sector, traders, manufacturers, machinery, equipment, and others.

The Canara Bank business loan provides a fund to facilitate end-to-end business operations. This loan can be availed to meet the business expansion or working capital requirements. Given below are some of the features and benefits of a Canara Bank business loan:

  • With Canara bank business loans you can have an easy and hassle-free loan application experience.
  • If you are an existing customer you won’t require any documentation. However, as a new business loan applicant, you can apply with minimal documentation requirements.
  • You can apply for a loan for any purpose like a capital requirement or expenditure.
  • You can avail a business loan of up to Rs 10 crore, however, this is subject to the nature of the business.
  • Extended loan tenure of up to 7 years.
  • Canara bank will charge a very low processing fee compared to different lenders. The bank charges up to 1% of the loan amount as a processing fee.

Documents Required for Canara Bank Business Loan

The documents required for Canara bank business loan are as follows:

  • A copy of applicant’s PAN card.
  • Driving Licence, PAN card, Passport, or Voter ID as identity proof.
  • Water bill, gas bill, telephone bill, or rental agreement as address proof.
  • Six-month bank statement.
  • Proof of continuation of business for 2 years.
  • ITR/Sales Tax certificate.
  • Latest ITR with proper computation of income, balance sheet, profit and loss of last two years. All these must be certified by a certified CA.
  • Sole Proprietorship Declaration/Certified copy of Partnership Deed/Memorandum of Articles of Association.

How Does the EMI Calculation Work for Canara Bank Business Loans?

You can always use the Urban Money online calculator and calculate your business loan EMI. All you have to do is enter the loan amount, loan tenure, and interest rate, and the calculator will determine the best loan offers for you The EMI calculation for your business loan involves a lot of variables and complex calculations that simply take too much time and effort. However, if you wish to understand the EMI calculation, you can always refer to the below given formula.

Given below is the formula to calculate your loan EMI amount:

EMI = P × r × (1 + r)n/((1 + r)n – 1) 

Here,

  • P stands for a principal loan amount
  • n stands for tenure for repayment of the loan
  • r stands for current rate of interest on your loan amount

How Canara Bank Compares with Other Lenders?

Here is a table representing the comparison between Canara bank and other Business loan lenders on the basis of annual rate of interest.

Other Bank/NBFCs Rate of Interest (p.a.)
Canara Bank 10.50% to 18%
IIFL Finance 12.75% – 32% p.a.
HDFC Bank 11.90% to 21.35%
Flexi Loans 1% per month onwards
Zip Loan 1% to 1.5% per month (Flat ROI)
Axis Bank 14.25% to 18.50%
IDFC First Bank 14.50% onwards
Kotak Mahindra Bank 16% to 19.99%
Fullerton Finance 17% to 21%
Bajaj Finserv 17% p.a. onwards
RBL Bank 17.50% to 25%
ICICI Bank 18% onwards
Indifi Finance 1.5% per month onwards
Lendingkart Finance 1.5% to 2% per month
Tata Capital Finance 19% p.a. onwards
NeoGrowth Finance 19% to 24%
Hero FinCorp Up to 26%

Canara Bank Business Loan Customer Care Number

In case you have any doubts or queries regarding Canara Bank business loan, you can get in touch with customer service in the below given ways:

  • Phone: 1800-425-0018, 9180-22240903
  • Email Address: hosbu@canarabank.com

FAQs

From refinancing to reducing your interest, we have the answers right here.

What is the interest rate of a business loan in Canara bank?

The interest rate offered for a business loan in Canara bank ranges between10.50% to 18%.

What is the maximum and minimum business loan amount I can get from Canara bank?

You can get a maximum loan amount of Rs 10 crore, while the minimum loan amount is Rs. 50,000.

How to check business loan Status in Canara bank?

Open the Canara bank website, click on corporate banking, then loan and advance banking, and then select loan application status. Enter the details asked and you will know the status of your business loan application. This is possible when you already have an account in Canara bank. If you do not have any account you can contact the customer care executive.

Canara bank Checks for CIBIL Score for a business loan?

The best credit score is 750 or more. However, Canara bank also accepts a minimum CIBIL score of 650.

What is the minimum turnover requirement for a Business Loan?

The business's minimal annual income must be a minimum of Rs. 1.5 lakh. The applicant must be at least 21 years at the time of applying for the loan.

What are the documents required in Canara bank for a business loan?

The documents required in Canara bank are identity proof, address proof of company incorporation, a document of the deed signed, ITR, and many more.

How to apply for a business loan in Canara bank online?

You can simply apply for a business loan in Canara bank online by visiting the official website of Canara bank.

What is loan foreclosure?

Loan foreclosure is a complete repayment of the remaining loan amount in a single payment and not in multiple EMIs. You can use your surplus funds can be used to give a complete foreclosure to your loan.

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