Canara Caravan | MSME Caravan Scheme

India has an extensive road network and road transport that contributes to the nation’s economic development. The scope for financing Transport operators’ segment is abundant. As such Canara bank with a view to broaden the clientele base under transport operators Segment of MSME, introduced Caravan scheme.

Purpose	"To finance new vehicles (Small, Light, Medium, Heavy Commercial Vehicles, Passenger vehicle) E.g. Trucks/Tankers/Trailers /Tippers/Buses/Luxury Buses and passenger vehicles etc."
Target Group	Existing Transport Operators under MSME segment (for goods and passengers)having 3 years of experience.Individuals / Firms / Companies /Trusts / Institutions / Associations.
Quantum of loan	Minimum Loan above ₹25 Lakhs. Maximum Loan up to ₹5 Crores.
Margin	Varies between 5% to 50%.
Security	Primary: Hypothecation of vehicles financed by Bank. Collateral: Up to Rs.1.00 crore : Min 25% collateral security by way of land and building or CGTMSE cover. Above Rs.1.00 crore : Min 25% collateral security by way of land and building.
Nature of facility:	Term loan
Repayment Period:	Repayable in 60 Months (including Moratorium period).

Income tax assesse (Personal & Business).
Individuals /Firms /Companies /Trusts/ Institutions /Associations.
Existing transport operators (Goods or passenger) having experience of 3 years or more in the line of transport operator business.
Requirement of minimum 5 new vehicles or minimum loan amount of Rs.25.00 lakhs.
Transport operators holding national/state route permit and other necessary permits/license/approvals.

Takeover cases not allowed.
The borrower(s) should hold the necessary driving license or engage drivers possessing valid license to operate the type of vehicle for which credit is sought.
Wherever applicable, borrower should provide a letter of authority from its clients /Govt Departments etc. authorizing the bank to receive payment directly from them. Or escrow mechanism is to be put in place.