Purpose

Purpose of the scheme is to discount/purchase of bills of exchange (only pre-accepted bills or bills drawn under LCs) drawn by MSME units (Manufacturing) on reputed Joint Stock Companies/Public Sector Undertakings representing genuine trade transactions.
Eligibility
  • The Drawer of the bill under the scheme should be an MSME (Manufacturing) unit whose borrowal accounts are classified under Standard Asset.
  • The drawee of the bill under the scheme should be reputed Joint Stock Company and Public Sector Undertaking.
  • Bills of exchange drawn against Inland LCs of Public Sector Banks, Private Banks (excluding co-operative Banks) and Foreign Banks (Prime Banks) operating in India are also eligible for discount under the scheme. However, where Private Sector banks and Foreign Banks (Non-Prime Banks) are involved, prior permission from RM Wing, HO is to be obtained for exposure limit as per prevailing guidelines.
  • MSME (Manufacturing) Units coming into our fold (takeover accounts) are also eligible to be financed under the scheme, subject to such units satisfying the prevailing take-over norms.
Maximum limit

Depending on the need
Guarantee cover

CGTMSE cover available wherever eligible
Rate of interest

Rate of interest as per prevailing guidelines of the Bank linked to RLLR Rate of the Bank, subject to changes from time to time
Processing charges As per prevailing guidelines.

Conditions apply. The information provided above is only illustrative and not exhaustive.

Contact: For more details, please contact your nearest: Canara Bank Branch or E-mail to:hosbu@canarabank.com