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.