Canara

Canara GST: One-Stop Banking Solution for Your GST Needs

Micro, Small and Medium-Sized Enterprises (MSMEs) are the true backbone of the Indian economy in its evolving financial landscape. However, despite their importance, these enterprises often face challenges in securing working capital financing. To address this need, we have introduced the Canara GST Scheme, a financial assistance program designed specifically for GST-registered MSMEs.

What is Canara GST?

The Canara GST Scheme is a specialized financial program aimed at helping GST-registered MSMEs with their working capital needs. This scheme leverages the GST return data of businesses to determine loan eligibility, making financing more accessible, especially for newly registered MSMEs.

What Makes it a Game Changer?

• Working capital based on turnover in GST returns
• Quick sanction and disbursement with minimal documentation
• Ideal for traders, manufacturers and service providers
• Transparent process with competitive interest rates starting from 8.50%*
• Digital-first approach, apply and track with ease

Key Features

The Canara MSME Star Scheme is designed to empower MSMEs with simple, flexible and business-friendly financing options:

• Nature of Facility: Working Capital (Fund-Based and Non-Fund-Based)
• Purpose: To provide credit for Working Capital requirement of GST Registered MSME borrowers (New/Existing) by way of fund (as Sub-Limit of Fund-based limit under the scheme by way of specified facilities)
• Target Group: Micro, Small & Medium Enterprises (Manufacturing/Services)
• Quantum of Loan: Minimum loan amount above ₹10 Lakhs
• Margin: Nil
• Repayment Period: Working Capital Limit tenable for 1 year
• Security:
  • Primary security: Assets created out of Bank Finance.
  • Collateral Security: Collateral Security value shall be minimum 75% of the loan amount in the form of:
    • Mortgage of immovable properties Land/Land & Building
    • Other Approved Collaterals such as Assignable LI policies, LIC Policy, NSC, Post Office Term Deposits, Govt. Securities, Kisan Vikas Patras (KVP) and Term Deposits in Canara Bank

Who is Eligible for the Scheme?

GST Compliance:

• Must be a GST-registered MSME
• New customers with minimum business operation of 6 months and GST return filed for at least 6 months

Entity Types Covered:

• Individuals
• Proprietary firms
• Partnership firms (excluding those with HUF as a partner)
• Limited Liability Partnerships (LLPs)
• Private and Public Limited Companies (excluding NBFCs)
• Professionals, self-employed persons, and traders

How to Apply

Applying for the Canara GST Scheme is simple and MSME-friendly.

Check Your Eligibility

• New customers with minimum business operation of 6 months and existing customers shall be brought under the scheme
• Has collateral security minimum 75% of the loan amount

Visit the Branch

• Meet the MSME loan officer at the nearest branch for details and document checklist.

Sanction & Disbursement

• Upon assessment and approval, the loan is sanctioned and disbursed for working capital requirements

Conclusion

For GST-registered MSMEs looking to run or expand their businesses, the Canara GST Scheme is a timely and effective financing solution. With simplified requirements, competitive rates and flexible facilities, it supports compliant businesses ready to grow. If your enterprise has been operational for at least six months with a clean GST record, this scheme can help you access the working capital you need, quickly and confidently.