Term Loan for MSME Exporters

Canara Bank offers MSME exporters term loans for purchasing software or hardware, traveling abroad for business purposes, and participating in trade fairs, exhibitions, or international trade fairs in India. Canara Bank was founded by Shri Ammembal Subba Rao Pai, a visionary and philanthropist, in July 1906, in Mangalore, Karnataka. The Bank has gone through various phases of its growth trajectory over the hundred years of its existence and is today a financial conglomerate with over 5000 branches across India.

Loan Eligibility

MSME customers involved in the export of goods or services and having a regular credit limit with a satisfactory track record for the past three years (sole banking / multiple banking arrangements/consortium arrangement) can avail of loans under Canara MSME Expo. In addition to being an existing bank customer with a satisfactory track record, the exporter must have recorded a minimum export turnover of Rs.100 lakhs during the preceding year.

Amount of Loan

Loans of up to Rs.50 lakhs can be sanctioned under the Canara MSME Expo scheme for purchasing software/hardware for fashion designing, traveling abroad for business purposes, and participating in trade fairs and exhibitions aboard or International Trade Fair in India. In case of a loan only for participation in trade fairs/exhibitions, the maximum cap of Rs.25 lakhs is to be fixed per fair/exhibition. In addition, the amount of loan and eligibility is linked to the export turnover of the business.

Interest & Repayment

Canara MSME Expo loan is extended at the same interest rate as applicable for term loans to MSME businesses. Hence, companies applying for the loan must have an

MSME or Udyog Aadhaar registration. Loan sanctioned under the Canara MSME Expo scheme is in the form of a term loan with a maximum repayment period of three years with an initial repayment holiday of 3 months.

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Frequently Asked Questions

Common questions about Term Loan for MSME Exporters.

The Canara MSME Expo loan is a term loan offered by Canara Bank to MSME exporters for purposes such as purchasing software or hardware, traveling abroad for business, and participating in trade fairs, exhibitions, or international trade fairs in India. It provides loans up to Rs. 50 lakhs with a maximum repayment period of three years and an initial repayment holiday of three months.

MSME customers involved in the export of goods or services, having a regular credit limit with a satisfactory track record for the past three years (sole banking/multiple banking arrangements/consortium arrangement), and who have recorded a minimum export turnover of Rs. 100 lakhs during the preceding year, are eligible for the Canara MSME Expo loan.

The maximum loan amount that can be sanctioned under the Canara MSME Expo scheme is Rs. 50 lakhs. However, for loans solely for participation in trade fairs/exhibitions, the maximum cap is Rs. 25 lakhs per fair/exhibition.

The loan amount under the Canara MSME Expo scheme is linked to the export turnover of the business. The eligibility and loan amount are determined based on the exporter's export turnover during the preceding year.

The interest rate on the Canara MSME Expo loan is the same as the rate applicable for term loans to MSME businesses. The interest rate may vary based on the bank's lending rates and the borrower's creditworthiness.

The Canara MSME Expo loan is offered as a term loan with a maximum repayment period of three years. Additionally, borrowers are provided with an initial repayment holiday of three months.

Yes, companies applying for the Canara MSME Expo loan must have an MSME or Udyog Aadhaar registration, as the interest rate and eligibility criteria are specific to MSME businesses.

No, the Canara MSME Expo loan is specifically designed for MSME exporters to purchase software/hardware for fashion designing, travel abroad for business purposes, and participate in trade fairs and exhibitions abroad or international trade fairs in India.

Yes, Canara Bank has a long history of supporting MSME businesses. The bank was founded by Shri Ammembal Subba Rao Pai in 1906 and has grown into a financial conglomerate with over 5000 branches across India, catering to the needs of various businesses, including MSMEs.

According to the eligibility criteria, MSME customers applying for the Canara MSME Expo loan should have a regular credit limit with a satisfactory track record for the past three years (sole banking/multiple banking arrangements/consortium arrangement).