|Nature of facility
||Term Loans only.
||To provide credit for financing new(fuel-based/electric) and second-hand (fuel based only) commercial vehicles (i.e. LCV/MCV/HCV), operating on any kind of energy which are permitted by State/Local authorities etc. (including hybrid commercial vehicles, ambulances, cargo vehicles, autos, taxis, buses, caravan vehicles built for the purpose of travel and leisure, etc.)Used electric vehicles (i.e. second-hand) are not eligible for finance under the Canara MSME Vahan.
| Target Group
||Existing and new borrowers constituted as Individual, Partnership, Sole Proprietorship, Private Ltd. / Public Ltd. companies/LLPs/Trusts/Societies, Registered Transport Operators under MSME – Mfg. and Services including Retail Traders.
|Quantum of loan
- Brand new vehicles (Electric & Non-electric): Minimum: No ceiling, Maximum: Rs.50.00 Lakhs.
- Second-hand vehicles (Non-electric): Minimum Rs.5 lakhs, Maximum: Rs.25.00 Lakhs.
- Brand new vehicles (Electric & Non-electric) : 25% on Road Cost.
- Second-hand vehicles (Non-electric) : 50% on Road Cost.
- Brand new vehicles: Fuel-based: Maximum 84 EMIs, Electric: Maximum 60 EMIs.
- Second-hand vehicles: Fuel – based: Maximum 36 EMIs.
- Primary: Hypothecation of assets created out of loan
- Loan up to Rs.10.00 Lakhs (total exposure in case of existing limit/liabilities):
No collateral security to be obtained and to be covered under CGFMU/CGTMSE.
- Loan above Rs. 10 Lacs:
100% collateral Security in the shape of immovable properties (i.e. land and building)/ approved collateral securities shall be obtained from the borrower (out of which, not more than 25% can be obtained in the form of vacant land and not less than 50% can be obtained in the form of commercial/residential properties). The immovable properties/ approved collateral securities can be obtained afresh or continuation of spill over/residual value of existing collateral security for existing borrowers.
Credit Guarantee Coverage under CGTMSE for the entire exposure as per extant guidelines.