Canara

Canara MSME Inn: Driving Development for India's Hospitality Businessmen

Operating a small or medium-sized business in today's competitive world requires more than just vision, it requires steady financial assistance and the right opportunities for growth.

Recognizing these challenges, we have launched Canara MSME Inn, a specialized scheme designed to support MSMEs in India’s hospitality sector. Whether you are looking for a hospitality loan, an MSME loan for hotels or working capital assistance, this program offers customized financial solutions to help your business thrive with confidence.

What is Canara MSME Inn?

It is a specially designed loan program created to meet the unique needs of micro, small and medium-sized enterprises (MSMEs) operating in the hospitality sector. It offers both term loans and working capital loans to help businesses fund expansion and manage day-to-day operations.

More than just a financial product, this program acts as a growth accelerator for business owners in hotels, restaurants, resorts, catering, banquet halls and related industries. It provides structured and flexible financial solutions, whether your goal is to expand, renovate or streamline cash flows effectively.

Key Features

This scheme has been designed with sector-specific financing requirements in mind. Here’s a detailed overview:

Nature of Facility

• Working Capital Limits:
  • Fund-Based (Secured Overdraft – SOD)
  • Non-Fund-Based
• Term Loan:
  • For capital expenditure, expansion, renovation and asset purchase

Purpose

• To provide credit support to MSMEs (as per MSMED Act 2006, revised July 1, 2020) engaged or intending to engage in the hospitality industry through fund-based/non-fund-based limits and term loans

Quantum of Loan

• Minimum Loan: Above ₹10.00 Lakhs
• Maximum Loan: Up to ₹25.00 Crores
• Working Capital Limit: Up to ₹5.00 Crores

Security Requirements

Primary Security

• Assets created out of bank finance
• Only immovable assets considered for security comfort

Collateral Security Norms

Term Loan (Standalone):

• Minimum 25% of loan exposure secured by residential/commercial property or approved securities
• Combined (Primary + Collateral) security must be at least 100%

Working Capital Limit (SOD – Standalone):

• No Drawing Power (DP) calculation required
• Minimum 100% collateral security, of which at least 50% must be in residential/commercial property or approved securities

Processing Charges & Concessions

• Up to 50% concession in Processing / Upfront Fee based on internal risk rating of the borrower

Repayment Terms

• Working Capital: Valid for 1 year (renewable)
• Term Loan: Repayable over up to 10 years, including a maximum 2-year moratorium

Margin Requirements

• Term Loan: 20% of the project’s hard cost
• Secured Overdraft: Nil
• Non-Fund-Based (NFB): 15%

Eligibility

This scheme is open to MSMEs in the service sector, specifically within the hospitality industry.

Eligible units include:

• Hotels and Resorts
• Restaurants and Fast Food Centers
• Dhabas and Messes
• Pizza Outlets
• Caterers and Food Delivery Services
• Marriage and Banquet Halls

How to Apply

• Step 1: Visit the Nearest Canara Bank Branch for more details and document checklist.
• Step 2: Submit the Application Form
  • Hand over the completed form and documents at the branch. Ensure all supporting paperwork is in order to avoid delays.
• Step 3: Bank Evaluation
  • The bank will assess your application based on eligibility, repayment capacity, business potential, and security offered.

Why Choose Us for This Scheme?

Selecting us for your hospitality business loan is about more than just access to funds. Here’s why entrepreneurs trust us:

• Tailor-Made for Hospitality: Designed specifically for the hospitality sector, addressing your business challenges.
• Wide Credit Support: Avail up to ₹25 crores under a single scheme, suitable for both new ventures and expansions.
• Minimal Hassles: Competitive margins, flexible repayment terms, and reduced processing fees.
• Trusted Financial Partner: With a strong legacy and nationwide presence, we offer dependable financial support.
• Growth-Oriented Approach: We don’t just lend; we empower businesses to grow sustainably.

Conclusion

In an expanding economy like India’s, hospitality business owners need more than ambition, they need reliable financial solutions.

Canara MSME Inn offers exactly that: a dependable credit partner designed specifically for your hotel or restaurant business. With flexible financing, business-centric terms and our commitment to service, this scheme helps you achieve sustainable success.

If you are ready to expand your hospitality venture or streamline your finances, Canara MSME Inn is your key to unlocking new growth.