Phone  whatsapp 1800 1030
WEB_ACCESSIBILITY_CERTIFICATE

  • Canara

  • Scheme for Financing through shgs

The objectives of SHGs is to inculcate the habit of thrift, banking culture in availing loans for productive purposes and repaying the same over a period of time and in the process to gain the economic prosperity through loan / credit.

  • The applicant should be an agriculturist, cultivating his own land or should be engaged in allied activities such as Dairy, Poultry, Sericulture, Fish Farming, etc.
  • The loans are to be permitted only to persons engaged in production and distribution of agricultural and allied commodities.
  • The applicant should possess a valid driving license. However, ALLHV loans can be sanctioned for purchase of 4 wheelers and heavy vehicles to eligible borrowers who do not have a valid driving license but are capable of engaging drivers possessingvalid driving license.
  • For financing Heavy Commercial Vehicles (HCV), the applicant should have minimum 15 acres of perennially irrigated lands.
  • Cost incurred towards Life Tax, Registration Charges, Insurance premium and other accessories shall also be considered for arriving at loan quantum.
 

NOTE: In respect of finance to commercial vehicles –

  • Applicant should posses a valid permit to run the vehicle.
  • Loans for MCVs/HCVs should be extended only to big farmers, State owned Corporations, State Forest Development Corporation etc.
  • Small Farmers are not eligible for loans for purchase of MCVs/HCVs.
Quantum and Margin Up to Rs 20.00 lakhs, margin nil and no collateral.
CGFMU For SHG Loans up to ₹20.00 Lakhs, coverage under CGFMU is mandatory.
Security Hypothecation of assets created out of Bank Finance.
Repayment for Term Loans
  • The first dose of loan may be repaid in 24-36 months in monthly/quarterly installments.
  • The second dose of loan may be repaid in 36-48 months in monthly/quarterly installments.
  • The third dose of loan may be repaid in 48-60 months based on the cash flow in monthly/quarterly installments.
  • From the fourth dose onwards, loans may be repaid between 60-84 months based on the cash flow in monthly/quarterly installments.
Rate of Interest

For Agriculture and allied activities (Excluding food and agro-processing units):

  • S.No 1: Upto ₹3.00 Lakhs – Rate: 7%
  • S.No 2: Above ₹3.00 Lakhs to ₹5.00 Lakhs – Rate: 1 Year MCLR
  • S.No 3: Above ₹5.00 Lakhs – Slab-wise based on Marks Secured:
    • A Grade: Spread over MCLR + 1.25%
    • B Grade: Spread over MCLR + 2.00%

For Food and Agro Processing Units:

  • S.No 1: Upto ₹3.00 Lakhs – Rate: 7%
  • S.No 2: Above ₹3.00 Lakhs to ₹5.00 Lakhs – Rate: RLLR
  • S.No 3: Above ₹5.00 Lakhs – Slab-wise based on Marks Secured:
    • A Grade: Spread over MCLR + 1.25%
    • B Grade: Spread over MCLR + 2.00%
PMJDY OD ₹5000 PMJDY OD for all women members having PMJDY OD.
In case of CCL Loans

In case of CCL, banks are advised to sanction a minimum loan of ₹6 lakhs to each eligible SHG for a period of 3 years with a yearly drawing power (DP). The drawing power may be enhanced annually based on the repayment performance of the SHG. The drawing power may be calculated as follows:

  • DP for the first year: 6 times of the existing corpus or a minimum of ₹1.5 lakhs, whichever is higher.
  • DP for the second year: 8 times of the corpus at the time of review/enhancement or a minimum of ₹3 lakhs, whichever is higher.
  • DP for the third year: Minimum of ₹6 lakh based on the Micro Credit Plan (MCP) prepared by SHG and appraised by the federations/support agency and previous credit history.
  • DP for the fourth year onwards: Above ₹6 lakhs, based on the MCP and appraised by the federations/support agency.
In case of term loans
  • First dose: 6 times of the existing corpus or a minimum of ₹1.5 lakh, whichever is higher.
  • Second dose: 8 times of the existing corpus or a minimum of ₹3 lakh, whichever is higher.
  • Third dose: Minimum of ₹6 lakhs, based on the MCP prepared by SHGs and appraised by the federations/support agency and previous credit history.
  • Fourth dose onwards: Above ₹6 lakh, based on the MCP and appraised by the federations/support agency and previous credit history.
QUICK ACCESS ESG
CUSTOMER SERVICES
COMPLIANCE IMPORTANT LINKS
ONLINE SERVICES MEDIA CENTRE

SITEMAP | TERMS AND CONDITIONS - View | Download pdf icon (.pdf - 80.68 KB) | COPYRIGHT POLICY - View | Download pdf icon (.pdf - 99.56 KB) | WEBSITE SECURITY POLICY - View | Download pdf icon (.pdf - 80.58 KB) | PRIVACY AND COOKIES POLICY | T&C WHATSAPP BANKING - View | Download pdf icon (.pdf - 150.97 KB) | CHATBOT TERMS & CONDITIONS - View | Download pdf icon (.pdf - 158.75 KB) | WIM - View | Download pdf icon (.pdf - 138.51 KB) | WIM DETAILS | CONTENT CONTRIBUTION MODERATION AND APPROVAL (CMAP) POLICY - View | Download pdf icon (.pdf - 147.02 KB) | CONTENT ARCHIVAL POLICY (CAP) - View | Download pdf icon (.pdf - 105.5 KB) | CONTENT REVIEW (CRP) POLICY - View | Download pdf icon (.pdf - 94.86 KB)

© 2026, Canara Bank, All rights reserved

01-04-2026 01:15 AM

Content Owned by Canara Bank