Last updated: December 22nd, 2022 5:12 PM

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.