46 XX | Enlightener Series | A. Public Sector Schemes | A.13 Canara Smart Professional Scheme

Disclaimer….before you read ahead!
The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updation, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.

Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this email.

About this scheme…
Canara Smart Professional Scheme was launched by Canara Bank as an MSME loan scheme recognizing various credit needs of Professionals – Architects, Civil Engineers, Chartered Accountants, Cost Accountants and Company Secretary, with special interest concessions for women entrepreneurs, to assist them in establishing and expanding their business.

How is it being implemented?
Under Canara Smart Professional Scheme, direct financial assistance is given to,

Architects, Civil Engineers, Cost Accountants, Chartered Accountants and Company Secretary, with special interest concessions for women entrepreneurs

to meet their capital expenditure or working capital requirements.

What’s on offer?
I. Product:

Composite loan comprising of term loans and need based working capital limits (secured OD)
Ticket Size
- For urban & metro centres – ₹10 Lakhs to ₹2 Crores
- For other centres – ₹10 Lakhs to ₹50 Lakhs
Component of working capital facility, in the composite loan, up to a maximum of ₹5 Lakhs

II. Purpose:

Fixed asset acquisition
Working capital requirements
For more details around this, please refer here

III. Borrower Type:

Individuals (18-60 years)
For information around whether loans can be given to a Professional’s business structured as Sole Proprietorship, Partnership, or Company; please contact Canara Bank via the means mentioned below

IV. Security or Collateral or Guarantee or Insurance

Primary Security: First charge or hypothecation over assets created out of Bank’s finance
All eligible loans to be covered under prevailing guidelines of Credit Guarantee Fund Scheme for Micro and Small Enterprises
Collateral:
- Nil for loans that are eligible to be covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- For other loans:
  - Nil collateral security if realizable value of immovable properties mortgaged as primary security is more than 100%
    OR
  - Minimum 50% collateral security in the form of mortgage of immovable property or financial securities in addition to the primary security Financial securities as mentioned above include Term Deposits (TD) with the Bank(s), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Surrender Value (SV) of LIC policy, RBI Relief Bonds, Government or Trustee Securities, or Indira Vikas Patra (IVPs)
Guarantee: Personal Guarantee of partners or promoters or Directors may be stipulated wherever applicable as per prevailing guidelines of CGTMSE
For information on the requirement of insurance, please contact Canara Bank via the means mentioned below

V. Interest Rate

Repo Linked Lending rate (RLLR) + Credit Risk Premium (CRP) – Interest concession of 0.5% for women entrepreneurs – 0.25% for accounts covered under CGTSME
- Interest concessions are subject to the ultimate interest rate not falling below the prevalent RLLR
Canara Bank’s RLLR w.e.f January 7, 2023 is 9.15%
Hence for women entrepreneurs, the interest rate is likely to range between the following based on their risk assessment and ticket size of the loan
- For loans up to ₹50 Lakhs – 10.05% – 10.30%
- For loans above ₹50 Lakhs – 10.30% – 10.55%

VI. Processing Fee

50% of the applicable processing charges or upfront fee
- On term loans – may range from 0.5% to 0.75% of the loan amount, net of concessions
- On working capital facility – ₹125 per Lakh or part thereof with a minimum of ₹250, net of concessions
For the latest general applicable processing fee on term loan or working capital facility, please refer here
For information clarification around the same and information around any additional applicable charges like inspection or documentation charges etc, please contact Canara Bank via the means mentioned below

VII. Margin Money Requirement

Term loans: 25%
Working capital facility: Nil as Secured Overdraft

VII. Tenure, Repayments & Pre-Closures

Term loans: up to a maximum of 10 years inclusive of repayment holiday and moratorium period based on cash flows
For working capital facility: tenability for 1 year
For information around pre-closures, prepayments, their related charges etc., please contact Canara Bank via the means mentioned below

IX. Turnaround Time

30-45 days depending on loan ticket size and whether the business is classified as Micro-Enterprise, Small-Enterprise or Medium-Enterprise.
Note that the definition of Micro-enterprise or Small- enterprise or Medium-enterprise per MSMED Act has been changed since July 1, 2020. Please click here for concise details.

Interested? Read ahead to check your eligibility….
I. Are you a qualified Professional Architect, Civil
Engineer, Chartered Accountant, Cost Accountant or Company Secretary?

If your answers to the questions above are an emphatic YES, you are all set to avail loan under Canara Smart Professional Scheme!

So…how big is this scheme and what has been done so fiar?
I. Details for Canara Bank’s Smart Professional Scheme is
not available in the public domain

So, now, how should you go about it?

IMPORTANT NOTE: Please note that some of the links are unsecured and your browser may prompt you for a permission to open such unsecured links to access them further. Please do so to view the links.
I. For submitting an application:

Please contact your nearest Canara Bank branch here OR Canara Bank SME focused branch here
Please find the updated link to apply online here OR here OR here (Click on Apply Online Tab)

II. For information on loan application and indicative list of required documentation in English & Hindi, please click here OR here (Click on Forms and Applications Tab)

III. For any queries, please contact Canara Bank’s MSME Banking Unit –