Canara MSME Contractor | Apply MSME Loan for contractors

Canara Bank has initiated Canara MSME Contractor Scheme to target beneficiaries that are contractors engaged in execution of contract works awarded by Govt. Agencies or otherwise, and have their operative accounts maintained in our Bank, registered with the respective Government agencies.

Nature of facility	Working Capital (Find based/Non-Fund based) & Term loan.
Purpose	To provide working capital assistance (Fund Based/Non Fund Based) in the form of running limit (Secured OD), FLC/ILC BG for working capital needs and Term Loan for purchase of brand new equipment/office premises to the existing and prospective eligible contractors/sub-contractors.
Target Group	MSMEs engaged in execution of contract works in the field of Civil, Mining, Electrical, Mechanical and construction awarded by Govt. Agencies or otherwise, that have registered their operative accounts maintained in our Bank with the respective Government agencies for receiving the funds towards payment under the underlying tender/bids document (contract) executed by them.
Quantum of loan	Minimum Loan above ₹25 Lakhs for Working Capital. Minimum Loan above ₹25 Lakhs for Term Loan.
Margin	For Working Capital- Nil. For Term Loan /NFB 20%.
Repayment Period	Working Capital: Tenable for one year. Term Loan Up to a Maximum of 5 – 7 Years. (including Moratorium period) depending on the purpose.
Security	Primary : Hypothecation of assets created out of loan. Minimum Collateral requirements : 50% of the proposed exposure under the scheme in the form of Land/Land & Building only and/or approved financial securities.

Individuals, Proprietorship, Partnership, Private & Public Limited Corporates, LLPs.
Existing clients should have satisfactory Bank dealings with their existing Bankers.
New clients/units whose market report and prospects are satisfactory subject to their dealings confined to our Bank.