46 XX | Enlightener Series | A. Public Sector Schemes

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 updating, 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 article.

About this scheme…

Canara Mahila Vikas Scheme, a revamped version of the erstwhile Canara MSE Vijeta Scheme, was launched by Canara Bank in early 2023 to encourage women entrepreneurs for income generation activities in manufacturing, services, trading or small businesses.

How is it being implemented?

Under this Scheme, direct financial assistance in the form of loans is given exclusively to,

Women owned & managed Micro, Small or Medium Enterprises (MSMEs) engaged in manufacturing, services, trading or small businesses.

What’s on offer?

I. Product

Term loan, Overdraft facility
Ticket Size: ₹10 Lakhs to ₹5 Crores

II. Purpose:

Acquisition of fixed assets
Working capital requirements

III. Borrower Type:

Individuals, Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Corporate Bodies
IV. Security or Collateral or Guarantee or Insurance
Security: First charge over assets created out of the loan disbursed under the Scheme
Collateral: Minimum collateral security of >100% of proposed loan amount by way of Land, Land & Building, and/or Approved Securities shall be stipulated subject to the Risk Rating (Low/Normal/Moderate)
- 50% of such security in terms of value shall be obtained by way of mortgage of residential or commercial Land & Building only
- Vacant Land can contribute upto a maximum of 25% of such security in terms of value provided it has clear demarcation and boundaries with approach roads and is allotted by any government or statutory body
- Land & Building accepted as security under the scheme should be backed by an approved building plan from authorized government agencies
- In case of Leasehold Properties, mortgage of leasehold rights over the property has to be permitted under the terms of respective lease deed
- Agricultural Properties shall not be accepted under this Scheme
- Wherever collateral comfort is less than 100%, CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) coverage is to be obtained for the remaining portion not secured by such securities under Hybrid/Partial Collateral Security Model of CGTMSE
- Existing customers enjoying limits or liability with the Bank may be permitted to switch over to this Scheme upon complying with all the applicable guidelines of the Scheme, subject to the Terms & Conditions
Guarantee: Nil
Insurance: For more information around this, please contact the Bank via means mentioned below

V. Interest Rate

Repo Rate Linked Lending Rate (RLLR) + upto 1% depending on Risk Rating and Collateral Value.
Scroll here to know more on interest rates charged on the Scheme here
Currently, interest rate on the Scheme may range between 9.25% to 10.25% per annum as the RLLR effective from September 12, 2023 has been 9.25%

VI. Processing Fee

50% of applicable charges
- Applicable charges for Term Loan ranges between 1.00% to 1.50%
- Applicable charges for Overdraft Facility ranges between 0.30% to 0.50%
For more information on this, please refer here
Additionally, there will be Documentation and Mortgage charges applicable as well

VII. Margin Money Requirement

VIII. Tenure, Repayments & Pre-Closures

Tenure
- Term Loan: upto 84 months including moratorium
- Overdraft Facility: tenable for one year, renewed annually
Repayments: EMIs
Pre-payment & Foreclosure Charges: Pre-payment penalty is waived in respect of credit facilities sanctioned to all MSE (Micro and Small Enterprises) borrowers. For more information, please refer here

IX. Turnaround Time

For more information around turnaround time, please contact the Bank via means mentioned below

Interested? Read ahead to check your eligibility….

I. Are you a Micro, Small or Medium Enterprise defined as per MSMED Act?

II. Do you fully own & manage your business?

Do you individually or jointly with other women manage and constitute majority (51% and above) of partner’s capital in the Partnership Firm?

Do you individually or jointly with other women control the management and constitute majority (51% and above) of share capital in the Body Corporate?

III. Has your business been in operations for atleast 2 years and has a satisfactory track record with the existing banker(s) for last 2 years?

In case of a new business, do you, the promoter(s) / founder(s) and the proposed business have satisfactory market opinion?

IV. Is your, the promoter(s) / founder(s), minimum CIC score in individual capacities (i.e. consumer CIC scores) from any empaneled credit bureaus atleast 650?

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