Canara MSME Atithi Scheme: Loans for Hospitality Businesses

Nature of Facility	Term Loan and/ or Short term loan/ Running limit by way of OD/OCC.
Purpose	To provide working capital needs and term loan requirements for purchase of equipment required for setting up of business.
Target Group	Micro and Small Enterprises-Services under Mudra (Shishu, Kishore and Tarun) Cafeteria, Restaurants, Dharshani Hotels with self-service facility, Mobile Canteens, Dhabas, Fast food centres.
Quantum of loan	Maximum: Rs.10.00 lakhs, as per Mudra Variants: Shishu : Loan amount up to Rs.50,000/- Kishore : Loan amount from Rs.50,001 to Rs.5,00,000/- Tarun : Loan amount from Rs.5,00,001/- Rs.10,00,000/-
Margin	Term Loan : 15% Working Capital/Short Term Loan:10%
Repayment Period	Short Term Loan: Repayable within 12 months in suitable monthly instalments. Term Loan: 5 years inclusive of moratorium period based on cash flows. Working Capital-Tenable for Two year subject to annual review
Security	Primary Security- Assets created out of loan proceeds (Hypothecation of moveable assets and /or Mortgage of immovable property) and existing business assets of the borrower. Collateral Security- No collateral security to be instated.
Coverage	All the loan accounts under Micro Enterprises sector are to be covered under CGFMU. All the loan accounts under Small Enterprises sector are to be covered under CGTMSE. Annual Guarantee Fee (AGF) and Annual Service Fee (ASF) are to be borne by the borrower only.
Processing Charges	50% of the applicable processing charges.

Existing customers with satisfactory track record.
New customers subject to compliance of KYC, due diligence.
Prospective borrowers are localites and should have experience in the related field or to be run with experienced/ skilled staff.
Individuals, Proprietorship and Partnership firms.
Financing Hotels/Dhabas located at National Highways should necessarily be run by permanent residents (Borrower) of the same locality subject to compliance of regulatory guidelines.
The Scheme shall be applicable for accounts risk rated upto Moderate Risk only.

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, Internal and External Risk Rating/Grade.

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.
Agree to pay penal interest at 2% for overdrawn portion, in case of delayed regularization of the limit.