Scheme for Energy Savings for Small & Medium Enterprises (SME) Sector by Canara Bank


A. Scheme Objectives

The objective of this scheme is to encourage the adoption of energy conservation measures and acquisition of energy saving equipment by Small and Medium Enterprises.


B. Eligibility Criteria

The criteria to avail the benefits of this scheme are;

  1. Units should fall under the category of Small and Medium Enterprises
  2. Cost of energy for the unit should constitute not less than 20% of the total cost of production
  3. Unit should possess energy audit report issued by an approved energy Consultant/ Auditor
  4. Borrowal Accounts - ASCC code S1 or S2 during previous review
  5. Current account holders having dealings exclusively with Canara Bank satisfactorily for a period of last one year.


C. Scheme Details (Financial Parameters)

SMEs can avail maximum loan amount of Rs. 100 lakh in the form of term loan. Collateral is not required for loan amount up to Rs. 5 lakh. For loan amount greater than Rs. 5 lakh, collateral is determined by Canara Bank. The repayment of debt should be maximum 5-7 years including moratorium of 6 months. Guarantee cover is available under the Credit Guarantee Fund trust for Micro and Small Enterprises (CGTMSE). The applicable margin is 10% of the project cost and rate of interest is 1% less than the applicable rate. There is an upfront fee which is 1% of the loan. Assets acquired and charged as security to Bank are to be insured. As a special offer, Canara Bank provides 25% of the cost of Energy Audit/ Consultancy charges with a maximum of Rs. 25,000 to the first 100 units on a first come first served basis.


D. Procedure to Avail the Scheme



E. Contact Details

For more details, nearest Canara Bank branch can be contacted or visit


F. Scheme details can be viewed at: