Purpose

To reimburse the investment made on fixed assets, excluding land and building.

Capital expenses incurred towards creation/acquisition of fixed assets (other than land and building) during the immediately preceding 6 months may be reimbursed.

Eligibility
  • Existing clients with good track record for at least a period of preceding three years.
Nature of facility The facility will be permitted as TERM LOAN.
Quantum of loan

Upto Rs. 50 lakhs for new machinery and maximum of Rs 15 lakhs for second hand machinery which is not more than 2 years old from the original date of purchase.

For arriving at the quantum of finance, written down value as declared in the financial statements (audited or unaudited as the case may be) or market price, whichever is less is to be reckoned.
Margin

25% of the investment made in respect of purchase of new machinery.

50% of the investment made in respect of purchase of second hand machinery

Security

Prime security - Assets created out of loan Collateral security & Personal / Third party Guarantee obtained for the existing credit facility shall continue.

Rate of interest Rate of interest as per prevailing guidelines of the Bank linked to RLLR Rate of the Bank, subject to changes from time to time
Repayment In monthly/quarterly/half yearly instalments within a maximum period of 5-7 years.
Guarantee cover Cover under Credit Guarantee Scheme for Micro & Small Enterprises (CGMSE) is available, subject to conditions.

Conditions apply. The information provided above is only illustrative and not exhaustive.

Contact: For more details, please contact your nearest: Canara Bank Branch or E-mail to:hosbu@canarabank.com