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Central Bank of India MSME Loan

Overview

Micro, Small and Medium Enterprises (MSME) sector in India play an important role in the growth of the economy. These businesses are important to drive the employment rates at low investments. Central Bank of India offers MSME Loans through various schemes to help provide hassle-free credit. The bank offers both term loan and working capital credit to these businesses. Loan amounts vary from Rs. 10,000 up to Rs. 5 crores. Central Bank of India has set up specialized MSME branches for enabling entrepreneurs have easy access to credit facility. More details on Central Bank of India MSME loan can be found below.

Central Bank of India MSME Loans

Central Bank of India MSME Loans are provided through various schemes.

1) CENT – BUSINESS GOLD LOAN

EligibilityIndividual (18 years to 60 years), Proprietorship and Partnership, engaged in Business activities (Existing as well as New Customer)
PurposeFor business needs only.
Loan AmountMinimum: Rs.10,000/-

Maximum: Rs.20,00,000/-

Margin20%.
Repayment

Repayment in case of Term Loan: 12-36 Months.

Repayment in case of Overdraft or Cash Credit: On demand and renewable on yearly basis

SecurityPledge of gold coins & Gold ornaments

2) CENT - CONSTRUCTION EQUIPMENT FINANCE SCHEME (CCEF)

EligibilityFirms/Companies (including Contractors) engaged in construction activity
PurposeFor financing New Machinery / Equipment / Vehicles for construction activities
Loan AmountMaximum Rs.5.00Crore.
Margin25% of the cost of Machinery / Equipment / Vehicles
RepaymentMaximum 60 equated monthly instalments
SecurityPrimary

Hypothecation of machinery/ equipment/ vehicles financed by the Bank

Collateral

25% of the loan amount by way of mortgage of property/ land & building/ Liquid security.

3) CENT - CONTRACTOR

EligibilityCivil Contractors/ Construction Contractor
PurposeTo provide financial support to contractors of good reputation
Loan AmountMaximum Rs.5.00Crore.
Repayment12 months in case of CC/OD and Maximum 5 years in case of TL
SecurityPrimary

Hypothecation of all types of Construction Raw Materials/ Plant & Machinery and consumable stores Collateral

Up to Rs.1.00 crore: Equitable mortgage of immovable property, 100% of limit sanctioned

Above Rs.1 crore and up to Rs.5 crore: Equitable Mortgage of immovable property, 150% of limit sanctioned

4) CENT - DOCTOR

EligibilityIndividuals/Partnership/Companies/Trusts (Applicants/Promoters should have recognized qualification in any branch of medical science)
PurposePurchase of equipment, setting up of Clinic, purchase of vehicles, ambulances & working capital requirement
Loan Amount

Minimum - Rs.1.00 Lac

Maximum- Maximum: Rs.5.00 Crore

Margin

25% against the construction of Nursing Home / Clinic.

15% against equipment.

RepaymentNA
Security

Primary - Hypothecation of assets acquired out of bank finance.

Collateral - No guarantee /collateral for loans up to Rs.100.00 lacs, which are to be covered under CGTMSE Guarantee only.

For loans above Rs.100.00 lacs, collateral up to at Least 50% of the loan amount to be taken.

5) CENT - FOOD PROCESSING PLUS

EligibilityDal Mills, Flour Mills, Suji Mills, Oil Mills, Rice Mills and other Food and Agro Processing unit.
PurposeWorking Capital Finance/Term Loan/Non-Fund Based Limit for Agro Processing Unit
Loan AmountNeed based
Margin20%.
Repaymentone year for Working Capital and 7 years for Term Loan
Security

Loan Limit Up to Rs.1 crore: Collateral Security by way of EM of immovable property having 50% of the limit sanctioned

Loan Limit above Rs.1 crore: Collateral Security by way of EM of immovable property having a market value not less than 50% of the limit sanctioned

6) CENT - KALYANI

EligibilityWomen Entrepreneurs - New as well as Existing Women entrepreneurs for her Micro / Small enterprise
PurposeTo meet capital expenditure (Plant & Machinery /Equipment etc). & To meet day to day expenditure
Loan AmountMaximum Rs. 100 Lacs
Margin20%.
RepaymentNIL
SecurityCharge on stock/Receivables/ Plant & Machinery, Equipment and all other unencumbered assets acquired for business

7) CENT – MORTGAGE

EligibilityLoan against mortgage of immovable property
PurposeTo meet any sort of Personal or Business needs
Loan Amount

Minimum: Rs.1 lac

Maximum: Rs.100 lacs for property located in a rural area and Rs.1000 lacs for property located in other areas.

MarginNIL
RepaymentMaximum 120 equated monthly instalments
SecurityEM of non-encumbered immovable property

8) CENT - MORTGAGE- EDUCATIONAL INSTITUTIONS

EligibilityLoan against mortgage of immovable property
PurposeTo meet any sort of operational expenses
Loan Amount

Minimum: Rs.1 Lac

Maximum: Rs.500 Lac

MarginNIL
RepaymentMaximum 120 equated monthly instalments
SecurityEM of non-encumbered Land with Building in the name and possession of the Institute

9) CENT - TRADE

EligibilityAll types of Traders
PurposeFor business needs only.
Loan AmountMaximum Rs.500.00 lacs
MarginNIL
RepaymentNIL
SecurityEquitable Mortgage (under sole charge to the Bank) of immovable property

10) CENT - WAREHOUSE RECEIPT (WHR) SCHEME

EligibilityExisting/New customers (Individual Farmers, Arthias/Commission Agents, Traders & Food and Agro based processing units)
PurposeFinance against Warehouse/Cold Storage Receipts and Negotiable Warehouse Receipts
Loan AmountNeed Based
Margin35% on Market Price/Value as per Warehouse Receipt or 20% on Minimum Support Price whichever is lower.
RepaymentNormal Shelf life of the commodity/12 months from disbursement/Due date of WHR, whichever is earlier
SecurityPledge of Warehouse Receipt.

11) CENT - WEAVER CREDT CARD (WCC)

EligibilityAll Weavers and Ancillary Workers involved in weaving activities
PurposeAims to provide adequate and timely assistance to the Weavers to meet their credit requirements.
Loan AmountMaximum Rs.2.00Lac (Term Loan and Working Capital)
Margin

Up to Rs.25000/-: No Margin

Above Rs.25000/-: 20%

RepaymentValid for 3 years subject of an annual review
SecurityHypothecation of Asset financed

12) CENT - LAGHU UDHYAMI CREDIT CARD

EligibilityIndividuals engaged in activities (manufacturing and services) coming under definition of MSMED Act 2006
PurposeWorking Capital Limit in the form of Cash Credit/Overdraft
Loan AmountRs.10 lac
Margin20%
RepaymentValid for 3 years
SecurityNIL

13) CENT MUDRA (PMMY)

Micro Unit Development and Refinance Agency Ltd. (MUDRA) was launched in 2015 as a new financial entity for developing and financing intermediaries in the manufacturing, trading and service sector. This segment mainly focuses on non-farming enterprises who credit needs are less than Rs. 10 lacs. Central Bank of India has extended more than Rs. 2,800 crores towards this initiative. Anyone in the country can apply for this loan online or by visiting the nearest branch.

EligibilityMicro units of Individuals / Proprietorship / Partnership firms & Company running as Small Manufacturing Units
Loan AmountRs.10 lac

How to apply for Central Bank of India MSME Loan

The application form for Central Bank of India MSME Loan can be downloaded from the official website of the bank. This form needs to be submitted along with the checklist documents for the bank to process the loan application. Alternatively, one can drop in to the nearest bank branch to submit MSME Loan application. Some of the main documents to be submitted with the loan application form are:

  • Proof of Identity
  • Proof of Residence
  • Proof of Business Address
  • Balance sheet for last 3 years with Income Tax Returns and Sales Returns
  • Assets and Liabilities of promoters and guarantors
  • Projected Balance sheet for the next two years
  • Project report of the proposed project for term loan

FAQs: Central Bank of India MSME Loan

1. Does Central Bank of India offer working capital for MSMEs?

Central Bank of India offers both Working Capital and Term Loan under its MSME schemes.

2. What are the collateral security requirements for MSME loans?

There is no requirement for collateral security or third-party guarantee for loans up to Rs. 10 lacs. Depending on the profile of the applicant, the bank can extend this special support for loans up to Rs. 25 lacs.

3. What is the loan repayment timeline under the CENT – BUSINESS GOLD LOAN scheme?

For Term Loan, repayment period is 12-36 Months. In case of Overdraft or Cash Credit, it is on demand and renewable on yearly basis

4. What is the purpose of CENT KALYANI scheme?

The objective of CENT KALYANI scheme is to meet capital expenditure (Plant & Machinery /Equipment etc). and day to day expenditure. The maximum amount of loan available under this scheme is Rs. 100 lacs.

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