Canara MSME TEXTILE

Canara bank has introduced Canara MSME Textile for credit requirements of MSME borrowers engaged in manufacturing in Textile Sector.

Nature of Facility	Working Capital Term Loan (Both Fund-Based and Non-Fund Based facilities)
Purpose	“To provide credit for Working Capital / Term Loan requirement (Fund Based and Non-Fund Based) of MSME (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 communicated subsequently) to borrowers engaged in manufacturing in Textile Sector.”
Target Group	Units engaged under Manufacturing Sector in: Manufacturing of Yarn (Cotton, Synthetic Silk, Processing of Yarn i.e., Warping, Twisting, Texturizing etc., manufacturing of Thread, Net, Tapes). Manufacturing of Man Made Fabrics (Grey Cloth, Shawls, Blanket, Carpet, Suiting & Shirting, Carpet, Curtains, Knitted Fabrics, Synthetic Silk, Cotton etc.). Manufacturing of Jari used in fabric (Metalizing, Cutting etc.). Processing of Fabric (Dyeing, Printing, Finishing, Embroidery, other value additions on fabric etc). Manufacturing of Sarees, Dress materials, Garments, Apparels etc. Installation with maintenance of Solar project for captive consumption by units otherwise eligible and considered under the scheme for financing the manufacturing activity of the unit.
Quantum of loan	Minimum Loan above ₹10 Lakhs.
Margin	FOR WC/TL – 25%
Security	Primary: Assets created out of loan proceeds. Collateral: Security by way of mortgage of Land and Building and/or Approved securities to the extent of at least 75% of the total limit to be ensured.
CGTMSE Coverage	Not Applicable
Processing Charges	50% of the applicable upfront fee/ processing charges. 50% of the applicable commission on NFB limits.

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

Ahmedabad Circle
Mumbai Circle
Karnal Circle
Chandigarh Circle
Jaipur Circle
Chennai Circle
Madurai Circle
Bhopal Circle
Lucknow Circle
Pune Circle
Kolkata Circle
Delhi Circle.

Individuals/ Proprietary Concern/Partnership Firms (other than Partnership Firms where HUF is a Partner) /Company (excluding NBFC).
The Scheme shall be applicable for accounts risk rated up to Moderate Risk.
Second Hand Machineries are not eligible to be financed under the scheme.
Service Sector shall not be considered for financing under the scheme.

31.03.2025 (subject to performance review of the scheme as on 30.09.2024) Scheme Code: 93500

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.

Minimum ROI: RLLR p.a, Maximum ROI: RLLR+0.80 p.a subject to risk rating and collateral value.

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.
0.50% concession to Women entrepreneurs or any other concessions, NOT TO BE EXTENDED under this scheme.
Agree to pay penal interest at 2% for overdrawn portion, in case of delayed regularization of the limit.