Canara Bank MUDRA Loan: Features, Interest Rates, Eligibility & Documents

Canara Bank offers MUDRA loans of up to ₹10 lakh to support individuals, partnerships, self-help groups, and small businesses in meeting their financial needs. These loans can be availed as working capital or term loans to help businesses grow and manage operations efficiently.

Canara Bank MUDRA Loan Features 2025

Interest Rates

• MSME Manufacturing & Services (up to ₹2 lakh):
• Working Capital Loan: 10.30% p.a.
• Term Loan: 10.55% to 10.80% p.a.
• Above ₹2 lakh: 10.65% to 15% p.a.

Loan Amount

• Shishu: Up to ₹50,000
• Kishore: ₹50,001 to ₹5 lakh
• Tarun: ₹5 lakh to ₹10 lakh

Loan Tenure

• Working Capital Loan: Up to 1 year
• Term Loan: 5 to 7 years (EMI-based repayment)
• Moratorium: 2 to 3 months (if applicable)

Margin

• Up to ₹25,000: Nil
• Above ₹25,000: 15% to 25% (up to 30% if backed by book debts)

Security

Primary Security:

• Hypothecation of movable assets
• Mortgage of immovable property (if applicable)
• Assets created from loan funds

Collateral:

• No collateral or third-party guarantee required for Shishu loans

Note: Interest rates are indicative as of January 2025 and may change.

Canara Bank MUDRA Loan Interest Rates

Interest rates for Canara Bank MUDRA Loans start from 10.30% per annum and vary depending on loan type and amount.

MSME Manufacturing and Services – up to ₹2 lakhs

• Working Capital Loan: 10.30% p.a.
• Term Loan: 10.55% to 10.80% p.a.

MSME Manufacturing and Services – above ₹2 lakhs

• Interest Rate: 10.65% to 15% p.a.

Note: Term loans above one year and up to five years may attract an additional liquidity charge of 0.40% per annum.

Canara Bank MUDRA Loan Fees & Charges

Specific charges are not clearly disclosed. However, borrowers may be subject to:

• Processing fees
• Late payment charges
• Prepayment or foreclosure charges

Type of Canara Bank MUDRA Loans

Shishu MUDRA Loan

• Purpose: Short-term micro-financing for small cash flow needs
• Loan Amount: ₹10,000 to ₹50,000
• Tenure: 1 to 3 years
• Security: Hypothecation of assets created from the loan
• Coverage: Covered under Credit Guarantee Fund for Micro Units (CGFMU)

Canara Bank e-MUDRA Loan Eligibility Criteria

• Available to individuals, partnerships, proprietorships, and self-help groups
• Not available for trusts, HUFs, or private limited companies
• Existing customers with good track record over the past 2 years
• New applicants must provide a positive reference from their current bank
• Business must have a good market reputation
• Applicants must not be defaulters with any lender
• High-risk rated businesses may not be eligible
• Bank may require net worth details if no guarantor is provided

Eligibility for Shishu e-MUDRA Loans

• Available for individuals and Udyam-registered businesses
• Minimum age: 25 years
• Maximum age: 55 years
• Must have a satisfactory credit history

Documents Required for Canara Bank e-MUDRA Loan

• Identity proof and MSME application form
• Address proof of applicant and business
• Financial statements for last 2 years with ITR
• Business licenses or permissions
• Guarantor details with asset proof (if applicable)
• Project report with technical and financial details
• Sales details for the current financial year

For Shishu e-MUDRA Loan

• Aadhaar Card
• PAN Card
• Udyam Registration Certificate
• Bank statements

Note: The information provided is subject to change as per RBI and bank policies. Please verify details with Canara Bank before applying.