A Trade Loan from Central Bank of India named as Cent Trade means a loan for business. Under this Scheme, all type of Traders including Retailers / Distributors / Commission Agents / Dealers of major companies etc. can apply for the loan to enhance their business.
Eligible Amount for Trade Loan:
Under this scheme, maximum Rs.500.00 lakhs can be sanctioned per borrower, only if the borrower is eligible.
Generally, Cent Trade offers you Overdraft facility. However, if you request, Term Loan can be considered depending upon your repaying capacity and your cash flow.
Your overdraft limit will be assessed on the basis of Turnover Method, that means 20% of projected annual sales. The overdraft limit shall be for a period of 12 months and renewed / reviewed annually.
Security for this loan will be your Residential house / flat, commercial or industrial property, non-agricultural boundarised & well demarcated plot. These properties must be in your name and possession. If you get a Cent Trade loan, then you need to Mortgaged any of your above discussed property under sole charge of the Bank.
For loan up to Rs.20.00 lakhs:
The market value of the property should be at least 150 % of loan amount and Realizable Value should be minimum 120% of the loan amount.
For loan above Rs.20.00 lakhs:
The market value of the property should be at least 200% of the limit and Realizable Value should be minimum 150%.
Furthermore, if your property is in the name of your spouse or blood relative, that can also be taken as security . There is a condition for this also that if the owner of the property is ready, he or she could be a co-borrower or guarantor for financing to individuals, proprietorship and partnership firms.
Also, a property in the name of a Company or its Director/s can be accepted as security for financing to Company with personal guarantee of the owner Director of the property.
You can also provide your Liquid security in place of property, irrespective of loan amount, such as:
- NSC with accrued value (inclusive of interest) to the extent of 125 % of loan amount (i.e. margin 20%)
- Time Deposit of Bank including accrued interest / Surrender Value of LIP-to the extent of 112% of loan amount.(margin 10%)
- Securities like Bonds issued by Govt./Banks with to the extent of minimum 133% of loan amount (margin of 25%) can be accepted as per Bank’s Loan Policy.
- Liquid Security as above can be in the names as applicable for immovable property as mentioned above. You can also offered your security as a combination of immovable property and/or any/more of the liquid security with margin as mentioned above.
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- Your immovable property will be insured against fire and riots wherever required and also against other appropriate hazards, such as earthquake, flood, lightning etc with bank’s clause for full value of the property.
- Insurance of Stock /Stock in Trade is optional.
Rate of Interest:
Rate of Interest is Base Rate + 3.00% (10.25+3.00=13.25%). Also, please contact Bank for the latest Rate of Interest.
- Up to Rs.25,000/- : Rs.100 per proposal
- > Rs.25,000/- up to Rs.2 lakh: Rs300/- per proposal
- > Rs.2 lakh : 0.5 % of the limit (maximum Rs.50,000/-for TL & Rs.20,000/- for OD at the time of sanction.
- In addition, Renewal charges @0.10 % of limit, max.Rs.5000/-
i) Application form
ii) You need to submit your Financial Statements in case of limit of Rs.10.00 lakhs and above.
iii) Copy of Sales tax / VAT /any other Tax Registration
iv) Copies of Sales tax / VAT Returns (Assessment Orders for last four quarters)
v) Details of property offered as security with its present valuation;
vi) Income tax Returns for the last 3 years.
vii) Details of property and other securities.
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