Canara Bank unveils new loan model for tiny units

Canara Bank has unveiled a credit scoring model for financing medium and small enterprises. The model helps branch managers decide the eligibility of borrowers under the MSME sector to avail finance from the bank. The eligibility is decided based upon aggregate scores secured by the loan applicant on various parameters prescribed under behavioural, management, business and financial aspects. The scoring model will be used solely for the purpose of deciding the eligibility of the loan applicant to avail finance from the bank. Canara Bank has posted a fall of 15.79% in its net profit at Rs 610.83 crore for the quarter ended March 31, 2014, as compared to Rs 725.38 crore for the same quarter in the previous year.  However, total income of the bank has increased by 22.57% at Rs 11609.72 crore for quarter under review as compared to Rs 9471.57 crore for the quarter ended March 31, 2013.