Central Bank of India Business Loan

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 2020 offered by Central Bank of India starts from 8.55% onwards.

1 year MCLR (Marginal Cost Lending Rate): 8.05%, As on 15 Feb 2020

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

The business loan schemes offered by the Central Bank of India are as follows:

• Cent-Business Gold Loan – Available for new and existing customers for business requirements. Loan is given to proprietorship and partnership firms and also to individuals between the age of 18 and 60 years.
• Loan Amount: 10,000 to 20,00,000
• Interest Rate: Rs. 10,000 to Rs. 10,00,000 — 8.55%
• 10 Lakhs to Rs. 20 Lakhs – 9.05%
• Tenure: 12 to 36 Months

• 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 crores Rs. for 1 to 5 years.
• Interest Rate: Up to Rs. 10 Lakh – 8.55%
• Above Rs. 10 Lakhs to 1 Crore – 9.05%
• Above Rs. 1 Crore – Based on credit rating

• 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 – 8.55%
• Above Rs. 10 Lakhs to Rs. 1 Crore – 9.05%
• Above Rs. 1 Crore – Varies between MCLR (8.05%) + 2.00% to MCLR (8.05%) + 4:00%
• Processing Fee: 1% of the loan amount with maximum Rs. 2 lakh
• Collateral Security: Up to Rs. 1 cr equitable mortgage immovable property having 100% of the limit sanctioned.

• 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 crores 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

• Cent-Professional – Loan for established professionals like doctors, consultant architects and engineers, chartered accountants, tax consultants, company secretaries, management consultants, freelance cameraman/ journalists/ caterers. All professionals should have required degrees in the related fields and should be individuals/ joint partnership/ Joint stock companies.

• Loan Amount: 1 lakh to 1 crore (individuals), 1 Lakh to 5 Crores (Entity)
• Above 1 Crore – Based on credit rating
• Tenure: 12 to 120 Months
• Processing Fee: Nil up to Rs. 5 lakh

• 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 8.55% for up to 1 crore rupees and above that it depends on collateral security.

• Cent-Mortgage — Given for personal and business requirements. The loan amount for Cent Mortgage is from 1 lakh to 10 crores based on location and usage. Loan is offered to Traders, businessmen, partnership firms, companies, NRIs, professionals and self-employed.
  • Maximum tenure of 120 months.
  • Loan Amount: Rs. 1 lakh for property located in rural areas and up to Rs. 10 cr for other locations
  • Interest rate: 11.55%
  • Processing Fee: 0.50% of the loan amount, maximum Rs. 20000

• 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 Crores with a maximum tenure of 120 months.
  • Interest rate is: 12.55%
  • Processing Fee: 0.50% of the loan amount, maximum Rs. 20000

• 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 restaurant, day creches, typing, STD & Xerox booths, transport operators and so on. Maximum loan amount is 1 crore rupees with variable tenure.
• Interest Rate: Up to 10 Lakhs – 8.30%
• 10 Lakhs to 1 Crore – 8.55%

Also Read: Leading Business Loan Options for Women Entrepreneurs    

• 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%

• 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-Artisans Credit Card – For artisans involved in handicrafts production and manufacturing. Loans offered to artisans involved in production or manufacturing process
  • Credit limit of 2 lakh rupees with 3 years validity.

• Cent-Weaver Credit Card – Loans for Weavers and workers involved in weaving-related activities.
  • Maximum loan of 2 lakhs, payable within 1-3 years.
  • Interest Rate: 8.65%

• Cent-Laghu Udyami Credit Card – For people in manufacturing and services that come under MSMED Act, 2006.
  • Loan validity for 3 years with 10 lakhs rupees limit.
  • Interest rate: Base Rate 8.65%

• Cent-Prosperity — For minority community and loan detail and availability is based on bank’s discretion

• Small road-transport operators — Loan detail and availability are based on bank’s discretion.

Documents Required:

• 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 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

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.