Canara Bank – Energy Saving Loan Scheme for SMEs

Canara Bank – Energy Saving Loan Scheme for SMEs offers concessional loan financing of SME energy saving projects sustained by a partial grant as part of Canara Bank’s “Green Banking Program”. In this article, we look at the Canara Bank – Energy Saving Loan Scheme for SMEs in detail.

Canara Bank

Canara Bank is a premier commercial bank in India with a track record of over 110 years serving the nation with a wide range of banking services. Today, Canara Bank has a well-built pan India presence with 5847 branches and 9657 ATMs, meeting the needs of all segments and an ever growing clientele base of 7.36 crore accounts. Across the world, the Bank has 8 branches, one each at London, Hong Kong, Shanghai, Leicester, Manama, Johannesburg, New York and DIFC (Dubai) & a Representative Office at Sharjah, UAE. Some of the major verticals of the bank include:

Personal Banking– It offers an extensive range of products and services namely saving accounts, deposits, loans, mutual funds, Insurance, internet banking, debit card, credit card, et cetera.
Corporate Banking– It enables different services to its corporate clients namely Cash Management Services, Loans, IPO monitoring services, etc.,
NRI Banking– Apart from various personal banking products it also presents remittance services, consultancy services to its NRI Clients.
MSME Banking It offers different products and services to priority and SME sector.

Energy Saving Loan Scheme

The target group for the energy saving loan scheme are SMEs in India who are interested in obtaining loan for energy-saving products and equipment. Under the scheme, partial grant of upto Rs.50,000 is provided for an energy audit and cost for drafting a detailed project report on energy savings. Based on the

detailed project report, loan of upto Rs.10 lakhs or 90 % of project cost can be sanctioned under the guarantee facility of the Credit Guarantee Trust Fund for Small and Medium Enterprises (CGTSME) scheme. Existing Canara Bank customers and SMEs whose energy costs are greater than 20% of production cost are eligible for the scheme.

Back to Learn

Frequently Asked Questions

Common questions about Energy Saving Loans for SMEs in India.

The Canara Bank Energy Saving Loan Scheme for SMEs offers concessional loan financing for energy-saving projects undertaken by Small and Medium Enterprises (SMEs) in India. It also provides a partial grant of up to Rs. 50,000 to cover the cost of an energy audit and drafting a detailed project report on energy savings.

Existing Canara Bank customers and SMEs whose energy costs are greater than 20% of their production costs are eligible for the Energy Saving Loan Scheme. The scheme is specifically designed to support SMEs in India that are interested in obtaining loans for energy-saving products and equipment.

Under the Canara Bank Energy Saving Loan Scheme, SMEs can avail loans of up to Rs. 10 lakhs or 90% of the project cost, whichever is lower. The loan is sanctioned based on the detailed project report prepared after the energy audit.

Yes, the loans sanctioned under the Canara Bank Energy Saving Loan Scheme are covered by the guarantee facility of the Credit Guarantee Trust Fund for Small and Medium Enterprises (CGTSME) scheme.

The partial grant of up to Rs. 50,000 provided under the scheme can be used to cover the cost of an energy audit and drafting a detailed project report on potential energy savings for the SME.

The Canara Bank Energy Saving Loan Scheme aims to promote and support energy-saving initiatives among SMEs in India. It encourages SMEs to adopt energy-efficient technologies and equipment, thereby reducing their energy costs and contributing to environmental sustainability.

Yes, the Canara Bank Energy Saving Loan Scheme is available across all Canara Bank branches in India, as the bank has a well-established pan-India presence with over 5,800 branches.

The Energy Saving Loan Scheme offers several benefits to SMEs, including concessional loan financing, partial grant assistance for energy audits and project reports, loan guarantee facility through CGTSME, and the opportunity to reduce energy costs and improve operational efficiency.

No, the loan under the Canara Bank Energy Saving Loan Scheme can only be used for energy-saving projects and the purchase of energy-efficient products and equipment. The detailed project report prepared after the energy audit will guide the eligible expenditures.

The Energy Saving Loan Scheme for SMEs is part of Canara Bank's "Green Banking Program," which reflects the bank's commitment to promoting sustainable practices and supporting environmental initiatives among its customers and the broader community.