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  • Canara
  • Canara e-gst

Canara EGST

To provide Fund Based Working Capital Finance to GST Registered MSMEs through digital mode (upto Application/Provisional Sanction stage - Straight Through Process (STP) & Documentation & Disbursement – Assisted mode).

Document
  • (i)
    Nature of facility:
    Fund Based Working Capital Limit
  • (ii)
    Purpose:
    • To provide Fund Based Working Capital Finance to GST Registered MSMEs through digital mode (upto Application/Provisional Sanction stage - Straight Through Process (STP) & Documentation & Disbursement – Assisted mode)
    • Working Capital Limit to be provided only for income generation Business activities.
    • To Facilitate GST Registered MSMEs for availing hassle-free Working Capital Limit upto Rs. 500.00 Lakhs based on GST Turnover through digital mode.
    • The scheme shall be implemented for Existing to Bank (ETB) and New to Bank (NTB) Customers.
  • (iii)
    Target Group: Micro Small and Medium Enterprises (Manufacturing/Service/Trading)
    • Existing to Bank (ETB)
    • New to Bank (NTB)
  • (iv)
    Quantum of loan: Minimum loan amount: Above Rs.1.00 Lakh.
    Maximum loan amount: Rs.5.00 Crores
  • (v)
    Repayment Period: Working Capital: Tenable for one year from the date of sanction
(vi) Security:
Primary Security:
Primary assets created out of the Bank Finance.
Collateral Security:
  • Upto Rs 10 Lakhs: No collateral requires. To be covered invariably under CGFMU. Loan to be processed in STP mode.
  • Above Rs10 Lakhs Upto Rs.25 lakh

    To be covered under CGTMSE/Hybrid Model/ Collateral Security.

    If collateral security is below 100% of loan amount, unsecured portion of the loan shall be mandatorily covered under CGTMSE.

    1. Fully CGTMSE covered accounts will be processed under STP mode.
    2. Hybrid CGTMSE / Collateral Security covered accounts to be processed in Branch portal under Branch Assisted journey by Respective Sanctioning Authority as pe extant guidelines.
  • Above Rs 25 Lakhs upto Rs 500 Lakhs
    • Not eligible to be covered under CGTMSE
    • Collateral security value shall be Minimum 75% of the loan amount.
    • Wherever Collateral security is offered by borrower, Branch shall perform Collateral Security Inspection, CERSAI Search, Obtain Legal Scrutiny Report, Valuation Report, Charge Creation & all other formalities related to such advances as per extant guidelines.
(vii) Margin for calculating Drawing Power : NIL
Eligibility:
  • i.
    Business Entities with constitution – Individual, Proprietorship Firm (Individual promoter),Partnership Firm (Other than partnership firm where HUF is a partner), Limited Liability Partnership (LLP) Firm, Private & Public limited companies .
  • ii.
    Entity should have valid Udyam Registration Certificate (URC) & PAN and same will be validated digitally.
  • iii.

    Application should have minimum business vintage and active current bank account for 12 Months for processing of loan under STP mode

    Account vintage with less than 12 months to be processed in Branch portal under Branch Assisted journey and sanctioning authority will be MSME Sulabh/AGM-RO-CAC (in case non linkage of MSME Sulabh).

  • iv.

    GST Registration Certificate is mandatory under this scheme and minimum 6 months GST returns should be available.

    Applications with minimum 12 Months GST Returns should be available for processing under STP mode.

    Applications with GST returns less than 12 Months (6 months GST Returns should be available, Past six months returns shall be considered to arrive annual turnover (two times of the past six months turnover)), will be processed in Branch portal under Branch Assisted journey and sanctioning authority will be MSME Sulabh/AGM-RO-CAC (in case of non linkage of MSME Sulabh).

  • v.
    Applicant should not have active working capital limit with any Bank/FIs and same will be checked through Credit Information Report & CBS.
  • vi.
    In case of multiple firms, applicant can apply loan for only one firm through digital mode. (PAN based exposure of entity / Promoter under Canara e-GST Scheme to be checked for all proprietorship/individual entities under same PAN/URC.)
  • vii.
    Any account of the Borrower/Promoter should not be in Overdue/NPA status as on date of application as per CIC report or as per CBS in case of existing customer.
  • viii.
    Customers having credit history of SMA2/NPA account/s in last 12 months shall not be eligible.
  • ix.

    Number of Cheque returns/ECS/NACH bounce due to "Insufficient Fund" reason in the operative account/s in the last 12 months should not be more than 6 times for processing of loan under STP mode.

    Accounts having cheque returns of more than 6 times to be processed in Branch portal under Branch Assisted journey by and sanctioning authority will be MSME Sulabh/AGM-RO-CAC (in case non linkage of MSME Sulabh).

  • x.
    The Scheme is applicable for the accounts rated upto Moderate Risk only.
  • xi.
    Borrower's/Promoter's name should not appear in the RBI defaulter lists, Central Fraud Registry (CFR), ECGC Caution List.
  • xii.
    At least 75% of turnover reflected in GST Returns should have been routed through the Bank Account (Our Bank or other Bank) of the firm.
  • xiii.
    For loan above Rs. 25.00 Lakhs If turnover routed through Bank account (Our Bank or other Bank) of the firm is less than 75% of turnover reflected in GST Returns, sanction will be in Branch Assisted Mode.
  • i.
    Applicable loan documents will be mapped in package.
  • ii.
    E-signing of the loan documents to be done wherever applicable (Presently, e-signing & stamping of loan documents through NeSL integration is available for 24 states).
  • iii.
    Branch shall obtain loan documents from the package wherever e-signing functionality is not available and to be executed manually by the borrower/s as per extant guidelines. Branch shall keep these executed documents along with loan papers without fail.
  • iv.
    Branch shall download the e-signed documents along with other mapped documents, which are to be manually executed from the DLP package. Branch shall verify these documents and print out to be kept along with the loan papers invariably.

Interest rate and Charges: Rate of Interest is linked to the value of security/approved collaterals and Internal Risk Rating/Grade.

  • Attractive Rate of Interest starting from RLLR + 0.25 %* p.a.
    * Terms and Conditions applied.
Processing Charges:
  • Upto Rs. 10 Lakhs - As applicable for Mudra Loans & other MSME Loans (Presently communicated vide HO Cir. IC/952/2025 dated 18.12.2025 subject to revision from time to time):
    Sl. Category Applicable Charges
    1 Loans upto Rs. 50,000/- Nil
    2 Above Rs. 50,000/- to Rs. 5.00 Lakhs Nil
    3 Above 5 Lakhs to Rs. 10 Lakhs 0.25% per lakh or part thereof with a minimum of Rs. 500/-
  • Above Rs. 10 lakhs - 50% of the applicable processing charges, as applicable to Canara GST Scheme. (Applicable charges for MSME Advances, presently communicated vide HO Cir. IC/952/2025 dated 18.12.2025 subject to revision from time to time)
Documentation Charges:
Sl. Category Applicable Charges
1 Upto Rs. 2 Lakhs Nil
2 Above Rs. 2 Lakhs to Rs. 5.00 Crores Rs 200/- per lakh or part thereof subject to maximum of Rs. 25,000/-
  • i.
    Multiple Banking Arrangement/Consortium is not permissible for working capital requirements.
  • ii.
    Promoters should have valid Aadhaar & PAN and same will be verified digitally.
  • iii.
    Individual/Promoter/s having age 18 years & above shall be eligible under the scheme.
  • iv.

    Frequency of filing GST returns may be monthly/quarterly.

    Where frequency is monthly- 12 months GSTRs will be considered upto immediately preceding last month from the month of applying the loan.

    Example: - If customer applies for loan in December 2023, GSTR will be considered for the period from November 2022 to October 2023.

    Where frequency is Quarterly- 12 months GSTRs will be considered upto last complete quarter from the month of applying the loan.

    Example 1: - If customer applies for loan in December 2023, GSTR will be considered for the quarter starting from October 2022 to September 2023.

    Example 2: - If customer applies for loan on 15th October 2023 (before the due date of September quarter filing), GSTR will be considered for the quarter starting from July 2022 to June 2023.

  • v.
    At least 75% of turnover reflected in GST Returns should have been routed through the Bank Account (Our Bank or other Bank) of the firm.
  • vi.
    For loan above Rs. 25.00 Lakhs If turnover routed through Bank account (Our Bank or other Bank) of the firm is less than 75% of turnover reflected in GST Returns, sanction will be in Branch Assisted Mode.

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01-04-2026 01:15 AM

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