Central Bank of India Business Loan
Central Bank of India Business Loan
The Central Bank of India accords SME and MSME loans for the growth and expansion of a business. The funds are allocated to the individuals/organizations under different schemes as declared by the bank. The quantum of interest rate, loan, tenure, and processing fee differ from each scheme. In this article, let us have a detailed analysis of the features of the loan.
Features of the Loan
The salient features of the scheme are
- There is no processing fee for loans up to Rs.5 Lakhs
- The loan has an affordable rate of interest
- The bank offers collateral-free loan up to Rs.1 Crore
Loan Details
An individual can apply for this loan by visiting the nearest bank branch in his/her locality. The interest rate of the loan ranges from 8.70%-12.80%. A loan amount up to Rs.50,000 would be provided for a tenure of up to ten years. However, there is no processing fee.
Documents Required
Given below are the required documents that have to be possessed to apply for the loan.
- Application form
- Identity Proof: Voter’s ID Card/Passport/Driving License/PAN Card/Signature identification from present bankers of the proprietor, partner of the director (for companies)
- Address Proof: Recent telephone bills, electricity bill, property tax receipt /Passport/Voter’s ID Card of the proprietor, partner of Director (for companies)
- Proof of business address
- Balance sheets along with income tax/sales tax returns etc. of last three years. If the audited balance is unavailable for funds below Rs.25 lakhs, then unaudited balance sheets are accepted, following by the extant instruction of the bank.
- Photocopy of sales tax/VAT and any other tax registration.
- Memorandum and articles of association of the partnership/company deed of the partners etc.
- Assets and liabilities statement of guarantors and promoters with the latest income tax returns.
- Rent agreement (for business premises on rent) and clearance from the pollution control board.
- SSI/MSME registration if required.
- Projected balance sheets for the succeeding two years for working capital limits and the period of loan for term loans (Rs.2 lakh and above)
- If there is a takeover of advances, sanction letters of facilities that are availed from the existing bankers/financial institutions with detailed terms and conditions.
- Photocopies of lease deeds or title deeds of all properties that are offered for primary and collateral securities.
- Position of accounts from existing bankers and confirmation about asset being standard with them.
EMI Calculator
The CBI Business Loan EMI Calculator estimates the EMI value and the total amount of interest that is charged during the period. All the individual needs to do is, enter the loan amount and tenure and the rate of interest in the calculator.
The tables list the EMI, interest and total repayment amount.
| Loan Amount | Interest Rate | Tenure | Monthly Instalment | Total Interest Amount | Total Amount |
| Rs.5,00,000 | 8.55% |
1 |
Rs.43,621 | Rs.23,458 | Rs.5,23,458 |
| Rs.5,00,000 | 8.55% |
2 |
Rs.22,739 | Rs.45,743 | Rs.5,45,743 |
| Rs.5,00,000 | 8.55% |
3 |
Rs.15,795 | Rs.68,633 | Rs.5,68,633 |
| Rs.5,00,000 | 8.55% |
4 |
Rs.12,336 | Rs.92,126 | Rs.5,92,126 |
| Rs.5,00,000 | 8.55% |
5 |
Rs.10,270 | Rs.1,16,219 | Rs.6,16,219 |
| Rs.5,00,000 | 8.55% |
6 |
Rs.8902 | Rs.1,40,908 | Rs.6,40,908 |
| Rs.5,00,000 | 8.55% |
7 |
Rs.7931 | Rs.1,66,189 | Rs.6,66,189 |
| Rs.5,00,000 | 8.55% |
8 |
Rs.7209 | Rs.1,92,055 | Rs.6,92,055 |
| Rs.5,00,000 | 8.55% |
9 |
Rs.6653 | Rs.2,18,501 | Rs.7,18,501 |
| Rs.5,00,000 | 8.55% |
10 |
Rs.6213 | Rs.2,45,520 | Rs.7,45,520 |
The table specifies the EMI, total interest outgo and total repayment (Interest + Principal)
| Year |
Principal |
Interest |
Balance Amount |
|
1 |
Rs.33,078 |
Rs.41,474 |
Rs.4,66,921 |
|
2 |
Rs.36,019 |
Rs.38,532 |
Rs.4,30,901 |
|
3 |
Rs.39,223 |
Rs.35,329 |
Rs.3,91,678 |
|
4 |
Rs.42,711 |
Rs.31,840 |
Rs.3,48,966 |
|
5 |
Rs.46,509 |
Rs.28,042 |
Rs.3,02,457 |
|
6 |
Rs.50,646 |
Rs.23,906 |
Rs.2,51,811 |
|
7 |
Rs.55,150 |
Rs.19,402 |
Rs.1,96,661 |
|
8 |
Rs.60,054 |
Rs.14,497 |
Rs.1,36,606 |
|
9 |
Rs.65,395 |
Rs.9157 |
Rs.71,211 |
|
10 |
Rs.71,255 |
Rs.3341 |
Nil |
The following table elaborates the loan schemes, eligibility, loan amount and loan tenure.
|
Loan Scheme |
Eligibility |
Quantum of Loan (in Rs.) |
Tenure |
Processing Fee |
|
CENT- Business Gold Loan |
|
10,000- 20,00,000 |
12- 36 Months |
|
|
CENT – Contractor |
|
Depending on the projected cash flow for the entire repayment period |
|
1% of the loan amount and a maximum up to Rs.2,00,000 |
|
CENT – Doctor |
|
1,00,000 |
Not mentioned |
Not mentioned |
|
CENT – Trade |
All types of traders including Retailers/Commission Agents/Distributors/Arthiyas/Dealers of major companies etc |
Up to 5,00,000 |
Not mentioned |
Up to Rs.20,000 |
|
CENT – Professionals |
|
|
|
|
