Canara MSME Vahan | MSME Vahan Scheme

Canara bank is promoting the Finance of LCV/MCV/HCV to MSME Borrowers operating on any kind of energy which are permitted by State/Local authorities etc. As such Canara MSME Vahan scheme is introduced to extend the finance to MSME borrowers.

Nature of facility	Term Loans only.
Purpose	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.
Margin	Brand new vehicles (Electric & Non-electric) : 25% on Road Cost. Second-hand vehicles (Non-electric) : 50% on Road Cost.
Repayment Period	Brand new vehicles: Fuel-based: Maximum 84 EMIs, Electric: Maximum 60 EMIs. Second-hand vehicles: Fuel – based: Maximum 36 EMIs.
Security	Primary: Hypothecation of assets created out of loan Collateral : 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. Or Credit Guarantee Coverage under CGTMSE for the entire exposure as per extant guidelines.

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 having satisfactory track record with existing banks/FIs.
Income Tax and/or GST Assesse (Personal & Business).
MSMEs should be registered in UDYAM portal and should have Udyam Registration Certificate.
Credit Guarantee Coverage under CGTMSE for the entire exposure as per the extant guidelines.
Minimum CIC score of promoters constituted as individuals/proprietors from any empanelled credit bureaus should be 650.
Average Gross DSCR : Min 1.50.

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.

ROI : RLLR+0.90% p.a. floating for Brand New vehicles.

ROI : Based on Risk Rating Credit Risk Premium(CRP) over and above RLLR for Old Vehicles.

RLLR Linked Interest Rates on Loans under MSME Lending.
Service Charges.

Land and Building accepted as securities under the scheme should be backed by an approved building plan from authorized government agencies.
In case of leasehold properties, mortgage of leasehold rights over the property has to be permitted under the terms of respective lease deed.
Agricultural Properties shall not be accepted as security under this scheme.