A Business loan from Central Bank of India, Cent sahyog aims to cover credit facilities in Manufacturing & Services Sector that is MSE Sector.
Eligibility Criteria for Cent Sahyog- Business Loan:
All types of unorganized service and manufacturing sectors are eligible, they include:
- small shop owners like those engaged in mobile and TV repairing(Not Selling),
- small garage,
- juice shop,
- bakery owner,
- Sweet Shops
- Meat and Farsan Shop etc
However, there are few categories which are not eligible under this scheme. These are:
- Retail Trade (categorized as small services)
- Educational and Training Institutions
- Self Help Group (SHGs)
You can get this loan in either as Overdraft or Cash Credit working capital limit or Term Loan. In case of loans up to Rs.10 lacs; Over Draft limits may be allowed without insisting for Stock Statements, particularly for Service Sector.
Eligible Amount of Business Loan:
Maximum Rs.100.00 lakhs loan amount can be sanctioned
Rate of Interest :
- Upto 10.00 lakhs: MCLR+ 0.50%
- 10 lakhs & upto 100.00 lakhs: MCLR + 1.00%
- Upto Rs.50,000.00, Processing fee is Rs.100 per proposal
- Rs.50,000.00 – upto Rs.5.00 lakhs, fee for processing the loan will be Rs.1000 per proposal
- Rs.5.00 lakhs – upto Rs.100.00 lakhs, the processing fee will be 0.5% of the loan amount (maximum Rs.25,000).
- And, the renewal charges are @ 0.10% of the loan amount (maximum Rs.15,000)
- The Term Loan amount is repayable in Equated Monthly Installments that is in EMIs to a maximum period of 84 months. Which means 7 years.
- OD/CC is repayable on demand. Also, for OD/CC, you need to keep paying interest amount on monthly basis
- Up to a loan of Rs. 100.00 lakhs, collateral security & guarantee is not required because the loan for MSE sector (Manufacturing & Services) will be covered under CGTMSE Scheme.
- Hypothecation of stock and receivables or charge on Fixed assets will be kept as Primary security.
- Application Form.
- Details of Primary securities
- Balance Sheets for the past 2 years along with estimated & projected Balance Sheets and other financial statements, wherever applicable.
- And, Documents for KYC verification.
- Institution of the borrower i.e. individual, proprietorship, partnership, limited company, with supporting documents.
- Usual OD/CC/ Term Loan documents of the bank