Central Bank of India is a government-owned entity that offers a diverse range of business loan options to Micro, Small and Medium Enterprises (MSMEs). These loans are provided to manufacturing and trading sectors for expanding operation, purchasing equipment and inventory and for getting more working capital.
- Business Loan Interest Rates 2021 offered by Central Bank of India starts from 7.35% onwards
Further, let’s discuss different business loan and business credit card schemes offered by Central Bank Of India
Central Bank of India Business Loans for MSMEs – 2021
The business loan schemes offered by the Central Bank of India are as follows:
A) Cent-Business Gold Loan
– Available for new and existing customers for business requirements. The loan is given to proprietorship and partnership firms and also to individuals between the age of 18 and 60 years.
- Loan Amount: Rs. 10,000 to Rs. 20,00,000
- Interest Rate: Rs. 10,000 to Rs. 10,00,000 – 7.60% onwards
- 10 Lakh to Rs. 20 Lakh – 8.60% onwards
- Tenure: 12 to 36 Months
B) Cent-Construction Equipment Finance Scheme
– Companies, contractors or firms involved in construction activity are eligible for this loan to procure new equipment, machinery or vehicles related to construction. Loans up to 5 crore with repayment tenure up to 5 years.
- Interest Rate: Up to Rs. 10 Lakh – 7.60% onwards
- Above Rs. 10 Lakh to 1 Crore – 8.60% onwards
- Loan Amount above Rs. 1 crore shall be based on Customer Credit Rating
Processing Fee: Nil up to Rs. 5 lakh
Rs. 200/-per lakh (Maximum Rs.1 lakh) above Rs. 5 lakh
Margin: 25% of the cost of Machinery, Equipment & Vehicles
Collateral: 25% of the loan amount
Also Read: What is the MSME scheme introduced by the government of India?
C) Cent-Contractor
Loans for Civil and construction contractors and subcontractors with good reputation and rating, and who work for Central and State Governments, PWD, PSU and renowned organizations in private sectors. Maximum loan of 5 Crores for 1 to 5 years.
- Interest Rate: Up to Rs. 10 Lakh – 7.60% onwards
- Above Rs. 10 Lakh to 1 Crore – 8.60% onwards
- Loan Amount above Rs. 1 crore shall be based on Customer Credit Rating
- Processing Fee: 1% of the loan amount with maximum Rs. 2 lakh
- Collateral Security: Up to Rs. 1 crore equitable mortgage immovable property having 100% of the limit sanctioned.
D) Cent-Doctor
Loan for medical professionals that include doctors, dentists, radiologists and physiotherapists with recognised educational degree to set up clinic/ X-Ray lab/ Pathology lab, Nursing home, purchase equipment, ambulance, computers for hospital/ clinic, working capital for stock up of medicines/ medical supplies. Cent Doctors are offered to individuals / partnerships / Companies / Trusts
- Loan amount varies between 1 lakh to 5 crore Rupees depending on the purpose of the loan and the business location
- Tenure could be up to 10 years
- Interest rate varies from applicant to applicant
- Margin: 25% against the construction of Nursing Home / Clinic
- 15% against equipment
E) Cent-Food Processing Plus
Term loans or financing for Various mills like daal, rice, suji, oil mills ads agro-based food processing units.
- Need-based financing with tenure of 1 to 7 years
- Interest rate is 7.60% onwards for up to 1 crore rupees and above that it depends on collateral security
- Margin: 25%
- Tenor premium for Term Loan up to 3 years is 0.25% & above 3 years is 0.50%
F) Cent-Mortgage
Given for personal and business requirements. The loan amount for Cent Mortgage is from 1 lakh to 10 crore based on location and usage. Loan is offered to traders, businessmen, partnership firms, companies, NRIs, professionals and self-employed.
- Maximum tenure up to 120 months
- Loan Amount: Rs. 1 lakh for property located in rural areas and up to Rs. 10 crore for other locations
- Interest rate: 11.10% onwards
- Processing Fee: 0.50% of the loan amount, maximum Rs. 20,000
G) Cent-Mortgage-Educational Institution
Loan given against mortgage of institution buildings and other immovable properties located in semi-urban, urban and metro cities. The private institutions should be either Society or trust and in existence for 5 years minimum and at least 2 batches of students passed out from the institution with recognised board/ university.
- Loan amount is 1 lakh to 5 Crore with a maximum tenure of 120 months
- Interest rate is: 12.10% onwards
- Processing Fee: 0.50% of the loan amount, maximum Rs. 20000

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H) Cent-Kalyani
- Loan for women entrepreneurs and self-employed for funding and expanding business. Doctors, CA, engineers, beauticians, dietitians, tailors, Art and craft business, small canteens, mobile restaurants, day creches, typing, STD & Xerox booths, transport operators and so on. Maximum loan amount is 1 crore rupees with variable tenure.
- Interest Rate for loan amount Up to Rs. 10 Lakh – 7.35% onwards
- No collateral required
- Nil processing fee
- Margin: 20%
- Cent-Trade – Loan for all kinds of traders like retailers, distributors, commission-based agents, arthiyas and dealers of major companies.
- Maximum loan of 5 crores with interest rate: 11.05% onwards
- Cent-Warehouse Receipt Scheme – Financing against warehouses and cold storage receipts for farmers, traders, commission agents and food and agro product processing units.
- Need base financing with maximum tenure of 12 months
- Up to Rs. 10 lakh for agriculture loan
- Margin: 35% on Market Price/Value as per Warehouse Receipt
- Cent-Weaver Credit Card – Loans for Weavers and workers involved in weaving-related activities
- Maximum loan of 2 lakh, payable within 1-3 years
- Interest Rate: 9.20% onwards
- Cent-Laghu Udyami Credit Card – For people in manufacturing and services that come under MSMED Act, 2006
- Loan validity for 3 years with 10 lakh rupees limit
- Interest rate: Base Rate 9.20% onwards
- Small road-transport operators — Loan detail and availability are based on bank’s discretion. Interest rate: 10.10% onwards
To check your loan EMIs you can use bank’s EMI calculator to know the exact amount to repay in defined time duration.
Documents Required for Loan Application
- Application form
- Identity Proof – Voter’s ID / Driving License / Passport / PAN Card / Signature Identification by the present banker for Proprietor / Partner/ Director (if Company)
- Residence Proof – Recent Telephone / Electricity Bills, Voter ID, Passport, Property Tax receipt
- Business Address proof
- Applicant(s) should never have defaulted with any Bank or Financial Institution
- For loans above Rupees 2 lakhs, need to furnish balance sheets for the last three years along with Sales Tax/ Income Tax returns. For loans below Rupees 25 lakhs, in case of unavailability of audited balance sheets, unaudited version will do with instruction from the bank
- Copy of VAT/ Sales Tax/ other tax registration
- Memorandum / Articles of Association (For Company) and /or Partnership Deed of the partners
- Assets-Liabilities Statements of guarantors / Promoters plus most recent Income Tax return
- In case business is in rented premises, rental agreement needed.
- Clearance required from Pollution Control Board (if applicable)
- Registration with SSI / MSME (if applicable)
- Projected Balance sheet for next 2 years (for loan over Rupees 2 lakhs)
- Photocopies of title deeds / lease deeds of all properties offered as collaterals
- Account position from existing bankers
- Sanction letters of facilities for takeover of advances

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How to Apply for Central Bank of India Business Loan with Paisabazaar?
The application process for Central Bank of India business loan with Paisabazaar involves the following steps:
Step 1: Visit Paisabazaar.com to check and compare loan options from Central Bank of India
Step 2: Pick the required scheme by filling and submit the loan application form
Step 3: Submit the documents along with the loan form for bank to verify them
Step 4: After verification, the bank shall approve the loan
Step 5: After the loan is approved, the bank shall disburse the loan amount in the applicant’s bank account
How to Track loan status in the Central Bank of India?
To track or check your business loan application from the Central Bank of India, you can follow the below-mentioned steps:
Step 1: Visit the official website or click on this link: https://www.centralbankofindia.co.in/English/Applyonlineforloan.aspx
Step 2: Click on the last bullet point ”Track Application” under Apply Online for Loan
Step 3: Select the Online Status or Offline Status as per your loan
Step 4: Enter the Loan Reference Number and registered Mobile Number
Step 5: Click on the ”Submit” tab to check your loan application status
Central Bank of India Business Loan is extended to self-employed individuals, proprietorship, partnership, private limited companies. These loans cannot be taken for any speculative activities. The loan amount, repayment period, interest rate, margin, processing charge, collateral requirement, and other related features vary depending on the type of Central Bank of India business loan that an individual requires.
Central Bank of India – FAQs
Q. What is the business loan interest rate offered by the Central bank of India?
Ans. The business loan interest rate offered is as low as 7.35% onwards.
Q. What is the business loan amount offered by the Central bank of India?
Ans. The minimum loan amount offered is Rs. 10,000 and the maximum is up to Rs. 5 crore.
Q. What are the processing charges of a business loan offered by the Central bank of India?
Ans. The processing fee charged by the bank for a business loan is 0.50% of the loan amount.
Q. What are the prepayment charges of an MSME loan offered by the bank?
Ans. The prepayment charges vary from case to case. It may be Nil for some customers and can exceed 4% for some borrowers.
Q. What is the repayment tenure of a business loan?
Ans. The repayment tenure of a business loan is from 12 months to 7 years.