Central Bank of India Business Loan

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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%


Rs.43,621 Rs.23,458 Rs.5,23,458
Rs.5,00,000 8.55%


Rs.22,739 Rs.45,743 Rs.5,45,743
Rs.5,00,000 8.55%


Rs.15,795 Rs.68,633 Rs.5,68,633
Rs.5,00,000 8.55%


Rs.12,336 Rs.92,126 Rs.5,92,126
Rs.5,00,000 8.55%


Rs.10,270 Rs.1,16,219 Rs.6,16,219
Rs.5,00,000 8.55%


Rs.8902 Rs.1,40,908 Rs.6,40,908
Rs.5,00,000 8.55%


Rs.7931 Rs.1,66,189 Rs.6,66,189
Rs.5,00,000 8.55%


Rs.7209 Rs.1,92,055 Rs.6,92,055
Rs.5,00,000 8.55%


Rs.6653 Rs.2,18,501 Rs.7,18,501
Rs.5,00,000 8.55%


Rs.6213 Rs.2,45,520 Rs.7,45,520

The table specifies the EMI, total interest outgo and total repayment (Interest + Principal)




Balance Amount









































The following table elaborates the loan schemes, eligibility, loan amount and loan tenure.

Loan Scheme


Quantum of Loan (in Rs.)


Processing Fee

CENT- Business Gold Loan

  • Existing and New Customers
  • An individual between 18 -60 years
  • Proprietorship and Partnership firms working in Business activities

10,000- 20,00,000

12- 36 Months

  • Up to 5 lakhs – No charges
  • Above 5 lakhs to 20 lakhs – Rs.250 per lakh

CENT – Contractor

  • Civil Contractors/Construction Contractors
  • Sub Contractors working on behalf of main contractors who have been employed by main contractors

Depending on the projected cash flow for the entire repayment period

  • Term Loan – 5 years
  • CC/OD – 1 year

1% of the loan amount and a maximum up to Rs.2,00,000

CENT – Doctor

  • Individuals/Companies/Partnership/Trusts
  • Applicants and promoters should have recognized qualification in any branch of medical science like BAMS/MBBS/BDS/BHMS or any recognized degree in Radiology/Physiotherapy etc. with minimum practical experience to establish Nursing Home/Hospital/Clinic
  • For individuals, he/she should be a qualified and registered medical practitioner and must have the minimum practical experience to establish a Hospital/Nursing Home/Clinic
  • Partnership: At least 50% should be qualified and registered medical practitioners
  • Company: At least 50% of the directors/promoter must be qualified and registered medical practitioners
  • Trusts: Trusts should be registered and have the rights to borrow. Trusts: Trusts should be registered and have the rights to borrow. At least one trustee should be a qualified medical professional and Registered Medical Practitioner.

– 5,00,00,000

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

  • Chartered Accountants, Registered Medical Practitioners, Company Secretaries, Consultant Engineers and Architects, Tax Consultants, Management Consultants, Free-lance accredited Journalists/Cameraman/Caterers  having either a degree or diploma from established institutions and established in their profession
  • Individuals/Jointly/Partnership firm (excluding partnership firm if HUF is a partner)/Joint Stock Company (excluding individuals engaged in Real Estate/Speculative Activities/Capital Market Activities) excluding businessmen
  • Minimum experience of 3 years in a particular field who are between 25-65 years old
  • An Income Tax assessee
  • Individuals: 1 Lakh -1 crore
  • For Firm/Corporate/Companies: 1 Lakh – 5 Crore
  • Term Loan- 10 years
  • Working Capital- 1 year
  • Up to Rs.5 lakh- No charges
  • More than Rs.5 lakh – 0.75% of the loan amount subjected to minimum Rs.5,000


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