Canara

Empowering the Backbone of India: The Canara MSME Star Scheme

Big corporations are not the only driving force behind India's economy. The vitality, aspirations and determination of Micro, Small and Medium-Sized Enterprises (MSMEs) give it true strength.

From small manufacturers to neighbourhood service providers, these enterprises do more than contribute to GDP, they create jobs, drive innovation and strengthen communities.

Recognizing their immense contribution, we introduced the Canara MSME Star Scheme, a one-stop, smart financial solution designed to power the growth of MSMEs across the country.

What is the Canara MSME Star Scheme?

The Canara MSME Star Scheme is a specially designed program that brings various business loan options under one umbrella. Created with ease and flexibility in mind, this scheme caters to a wide range of business needs, including infrastructure, working capital and expansion.

It’s not just a funding solution, it’s a growth enabler. The scheme supports MSMEs through every stage of their business journey, from simplified documentation to customized interest rates and expert guidance.

What Makes it Truly STAR-Worthy?

• Competitive interest rates tailored to your business needs
• Quick loan processing with minimal paperwork
• Personalized assistance from dedicated relationship managers

Why This Scheme Matters Today

Running and growing a business in today’s fast-evolving market is challenging, especially for MSMEs. Two major hurdles that business owners often face are:

• Scaling their operations
• Managing finances effectively

Access to timely and affordable credit is one of the most critical requirements. Whether it’s for working capital, purchasing new equipment or expanding operations, the right financial support at the right time can make all the difference.

The Canara MSME Star Scheme addresses these precise needs by providing a quick, simple and flexible way for MSMEs to overcome financial challenges and focus on what matters most, growing their business.

Key Features

The Canara MSME Star Scheme is designed to support and empower Micro, Small and Medium Enterprises with simple, flexible and business-friendly financing options.

Nature of Facility:

• Term Loan
• Working Capital – Secured Overdraft (Fund-Based and Non-Fund-Based)

Purpose:

• To provide credit facilities for the business needs of MSME borrowers engaged in the manufacturing or service sector, against the mortgage of property/approved securities.

Target Group:

• Micro, Small & Medium Enterprises (Manufacturing/Services)

Quantum of Loan:

• Minimum loan amount: Above ₹10 Lakhs

Margin:

• Working Capital / Term Loan: 20%

Repayment Period:

• Working Capital: Tenable for 1 year
• Term Loan: Up to 10 years (including moratorium)

Security:

• Primary security in the form of immovable property (existing/proposed) plus collateral in the form of immovable and/or approved securities, covering at least 100% of the loan.

Who Can Apply?

Check your MSME loan eligibility in minutes and take the first step toward business growth.

• Manufacturers – For raw materials or machinery purchases: Ensures uninterrupted production cycles with timely funding
• Traders & Wholesalers – To manage seasonal demand or stock: Provides flexible funds to stock inventory and meet peak demand without cash flow stress
• Service Providers – For tech upgrades or team expansion: Supports technology improvements and hiring to stay competitive
• Startups – For structured support to grow: Offers a solid financial foundation for early-stage businesses to stabilize and scale

How to Apply

Step 1: Visit the branch

• Meet the branch manager or MSME desk for guidance and documents checklist.

Step 2: Submit an online application

• Apply via the MSME portal or Canara Bank’s website, verify eligibility and upload documents.

Step 3: Quick approval and disbursement

• Loans are processed quickly, especially for smaller amounts.

Why Choose Canara Bank?

With a long history of supporting Indian businesses, we are a trusted partner for MSMEs. We offer specialised loan solutions, fast approvals and minimal paperwork. Our wide branch network ensures accessibility, while dedicated relationship managers provide expert advice at every step.

Whether you apply online or visit a branch, we combine convenience with personalised attention, making it the perfect choice for MSMEs aiming for stability and growth.

Conclusion

The Canara MSME Star Scheme is not just about providing funds, it’s about fuelling ambitions, supporting growth and standing with India’s small businesses at every step. For every MSME ready to rise, this scheme is the reliable partner you need.