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WEB_ACCESSIBILITY_CERTIFICATE

CANARA MICRO CREDIT CARD

Nature of Facility “CANARA MICRO CREDIT CARD”
Purpose To enable credit access on easier terms and through a faster process to Micro Enterprises for financing their working capital requirements business related expenditure.

Note - Non-business/personal expenditure shall not be eligible.
Card Type One stand-alone Business Credit Card per micro enterprise
Target group All Udyam registered Micro enterprises (as defined under MSMED Act 2006 & complying with the revised definition of MSMEs effective from 01.04.2025, as per Gazette Notification dated 21.03.2025 of Mo MSME with relevant modifications/clarifications communicated subsequently in such regard) that have short term and adhoc working capital finance requirement/small businesses seeking to manage business expenses.
Applicability PAN India
Nature of Facility Separate card limit to be given in conformity with the scheme guidelines and extant RBI Master Directions on Credit Card & Debit Card (Issuance & conduct directions)/based on the underwriting criteria of the credit card subject to a maximum limit of Rs.5 lakhs per card.
Credit Guarantee CGTMSE Credit facility under the scheme shall be covered under CGTMSE.
Note: Guarantee Coverage to be obtained upfront i.e., before activation of Card.
Extent of Guarantee Coverage 75% of amount in default or credit card limit, whichever is lower, irrespective of the borrower.
Tenure of the scheme 3 Years from the date of Launch or till 10 lakhs Credit Cards are issued (across all financial institutions) whichever is earlier.
Advance Fintech Features UPI payments using Rupay credit card.
Exclusive Business offers as per Bank policy from time to time.
  • Micro Enterprises (as defined under MSMED Act 2006 & complying with the revised definition of MSMEs effective from 01.04.2025, as per Gazette Notification dated Mo MSME with relevant modifications/clarifications communicated subsequently in such regard).
  • Definition of Micro enterprises: According to the MSMED Act, a micro-enterprise is defined as where, businesses with investments up to ₹2.5 crore and annual turnover up to ₹10 crore, covering both manufacturing and services (w.e.f.01.04.2025)
  • Borrower should have valid Udyam Registration Certificate (URC). Defaulters (NPA) / wilful defaulters / OTS / Write off with any lending institution not to be considered under the scheme.
  • CIC Score of all Promoters >650. Wherever the promoters have NIL credit history, even CIBIL Score of "-1","0" on account of this reason is considered acceptable.
  • eligible for finance under this scheme.
  • In case of existing WC limits, Borrower's existing WC limit shall not be in expired status at the time of issuance of the Canara Micro Credit Card.
  • The Scheme shall be applicable for Borrower's risk rated up to Moderate Risk only as per the applicable Risk rating models.
  • The account shall not be overdue or under SMA/NPA at the time of sanction.
  • Permitted Constitutions: 1. Pvt Ltd, 2. Partnership 3. Public Ltd – Listed 4. Public Ltd – Unlisted, 5. LLP 6. Sole Proprietorship, 7. HUF, 8. OPC 9. Govt Entity 10. Other.
  • Age : 18 to 75 years.
  • Banking Arrangements: Sole & MBA.
  • CMR score should be 1-6, if applicable.

Maximum limit shall be up to Rs. 5 lakhs per borrower.

Card limit shall be assessed as below:

A Requested for Credit card limit As per Borrower Request
B Applicant contribution 10%
C Existing Working Capital Credit Limit 20% of existing WC Limit (if zero, excluded from logic)
D Turnover (15% of Annual Turnover /12) *90% • Actual for existing enterprises
• Projected for new ones
E Eligible Credit Card Limit Eligible limit whichever is lower = A-B, C or 90% of D
(Max Rs.5 Lakhs)

Note: The final limit is determined using validated from portals such as GSTIN, account statement analyser; if data is unavailable, manual declaration may be considered.

  • Interest, including late payment charges, will be levied as per RBI guidelines for interest rate on credit card.
  • The Annual Percentage Rate (APR) after the free credit period shall not be more than 18% where credit guarantee is available for the portfolio

0.55% on the Credit Card Limit irrespective of the category of the borrower. No Risk Premium shall be levied as all beneficiaries will be Micro Enterprises. Applicable guarantee fee shall be charged to the customer as per credit guarantee scheme guidelines.

Joining Fee: No Joining Fee will be charged for initial 10 lakh customers (in total across all Financial Institutions).

  • The amount so waived upto a maximum of Rs.500 per card will be reimbursed by Government of India for Rupay Credit Card.
  • For subsequent years, Annual Fee will be maximum 1% of card limit or Rs.1000 whichever is lower for these Credit Cards.
  • Rewards/Benefits as per Bank Policy:
  • Cashback points on regular spends
  • Fuel surcharge waiver on transactions.
  • Discounts at selected merchants/category.
  • Personal air accidental death cover.
  • Non-air accidental death cover
  • Note: Above coverage may depend on Bank approved policy.

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01-04-2026 01:15 AM

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