Canara MSME INN: Customized Loans for Small Businesses

An Area Specific Scheme for financing MSMEs engaged/proposed to engage in Hotel Industries

Nature of Facility

Working Capital Limits (Fund Based - SOD and Non-Fund Based)
Term Loan

Purpose

“To provide credit for business requirement of MSME borrowers (as defined under MSMED Act 2006 with further revision in definition of MSME effective from 01.07.2020, as per Gazette Notification dated 26.06.2020 with relevant modifications communicated subsequently), by way of Fund Based/Non Fund Based Limits and Term loan to borrowers engaged/proposed to engage in Hotel Industries.”

Target Group

Units under Hotel Industries (service sector) such as Hotels, Resorts, Restaurants, Fast Food Centres, Dhabas, Pizza Centers, Mess, Caterers, Marriage/Banquet halls.

Quantum of loan

Minimum : Above Rs. 10.00 Lakhs
Maximum : Rs. 25 Crores
For WC limit: Maximum quantum is Rs.5 Crores.

Security

Primary Security: Asset Created out of Bank Finance. (However while arriving at Security Comfort, only immovable securities shall be considered).

In case of Term Loan (Standalone):

Collateral Security: Minimum of 25% of the exposure shall be secured by way of Residential/Commercial Property/approved securities.
However Primary and Collateral securities put together (in the form of Land/Land & Building and/or approved securities) shall not be less than 100%.

In case of Working Capital Limit (Standalone) SOD Limit:

No DP to be calculated.
Collateral Security: Minimum of 100% of the exposure shall be secured by way of Land/Land & Building and/or approved securities), of which 50% of collateral security shall be way of Residential/Commercial Property/approved securities.

Term Loan & Working Capital Limit (Both): As applicable above

CGTMSE Coverage

Not eligible under the said scheme.

Processing Charges

The following concession in Upfront fee, Processing Charges, Commission on NFB limits, TEV/Project appraisal charges and Commitment Charges may be extended to the borrower:

Rating of the Borrower	% Concession in the applicable charges
Low	50%
Normal	25%
Moderate	Nil

Repayment

Working Capital: Tenable for One year.
Term Loan: Repayment period up to a maximum of 10 years including moratorium.
Maximum Moratorium: 2 Years.

Margin

Term loan -20% of the hard cost of the project cost
Secured OD – Nil
NFB – 15% (as per extant guidelines)

Scheme shall be applicable PAN India. However, the scheme shall presently be implemented in the following Circles:

Ahmedabad Circle
Agra Circle
Bangalore
Bhopal Circle
Chandigarh Circle
Chennai Circle
Delhi Circle
Jaipur Circle
Karnal Circle
Kolkata Circle
Lucknow Circle
Madurai Circle
Mangalore Circle
Manipal Circle
Mumbai Circle
Pune Circle
Ranchi Circle
Trivandrum Circle
Vijayawada Circle

Eligible Individuals/Proprietary Concerns, Partnership Firms (other than Partnership Firms where HUF is a Partner)/ Company /LLPs, Trust/Society may be considered under the scheme.
MSMEs should be registered in UDYAM portal and should have valid Udyam Registration Certificate.
Borrowers with SMA1 or SMA2 during the last Year (i.e. last 12 months) in respect of liabilities with our/Other Banks/FIs as per credit bureau report are not eligible. However, Credit Card Overdue shall be exempted under the scheme.
Defaulters (NPA) with any lending institution may not be considered under the scheme.
The Scheme shall be applicable for accounts risk rated upto Moderate Risk /BB
CIBIL MSME Rank (CMR) guidelines shall be applicable as per extant guidelines.
Switchover of existing accounts to said scheme shall not be permitted.

Customer Identification proof along with NF998 MSME application.
Address Proof of unit and promoters.
License/permissions.
Financial papers for the last 3 years with ITR and projections.
Details of Guarantor with proof of assets.
Stock Statement.

Rate of interest is linked to the value of security/approved collaterals and Internal Risk Rating/Grade as applicable which varies from time to time.

Penal interest of 0.25%/0.50% may be chargeable as the case may be, from previous sanction to current renewal period, in case of lesser turnover routed through the account.
KYC, Assessment, Credit Appraisal (Both Fund Based and Non-fund based), Project Parameters, Credit Risk Rating, External rating, Delegation of Powers, Repayment, Tenability, Guarantee, Computation of Drawing Power, LSR, Valuation, Take over norms, Classification, Insurance, Inspection, Commission, and other guidelines as per extant guidelines.
Further variation in financial benchmarks, margin, security, ROI, charges etc. norms may be permitted by ED-CAC and above authorities upto their delegated powers.