Looking for a Small Business Loan for MSME Contractors from Central Bank of India?
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Central Bank of India Cent Contractor Loan
This loan helps MSME contractors and sub-contractors meet their fund-based and non-fund based working capital and capital expenditure requirements. Central Bank of India offers working capital loan, term loan, Letter of Credit and Bank Guarantee as per the needs of the borrower under this scheme. The maximum loan amount is Rs. 5 crore for this loan.
Features of Cent Contractor Loan
Why this Loan?
- The Central Bank of India Cent Contractor Loan is meant for contractors and sub-contractors to meet their working capital and capital expenditure needs
- Contractors and sub-contractors who are classified as MSME and work on Civil, Mining and Construction projects are eligible for this loan if they are performing contracts for the central government, state government, reputed Public Sector Units (PSUs), reputed Corporate entities, etc.
Loan Amount
- The maximum loan amount sanctioned under this loan is Rs. 5 crore
Interest
- Loans upto Rs. 10 lakh: The interest rate on this loan is defined as the sum of MCLR and a Spread of 0.50%. Currently, the MCLR of Central Bank of India is 7.10% bringing the effective interest rate at 7.60%
- Loans Above Rs. 10 lakh upto Rs. 1 crore: The interest rate on this loan is defined as the sum of MCLR and a Spread of 1.00%. Currently, the MCLR of Central Bank of India is 7.10% bringing the effective interest rate at 8.10%
- Loans Above Rs. 1 crore to Borrowers with Credit Rating of CBI-1 to CBI-4: The interest rate on this loan is defined as the sum of MCLR and a Spread of 2.00%. Currently, the MCLR of Central Bank of India is 7.10% bringing the effective interest rate at 9.10%
- Loans Above Rs. 1 crore to Borrowers with Credit Rating of CBI-5 and above: The interest rate on this loan is defined as the sum of MCLR and a Spread ranging from 2.50% to 4.00%. Currently, the MCLR of Central Bank of India is 7.10% making the effective interest rate range from 9.60% to 11.10%
Repayment
- The term loan needs to be repaid within 5 years whereas working capital loans must be repaid within 12 months
Security Needed
- The bank asks for hypothecation of assets financed by the bank under this scheme as primary security for the loan
- The bank may ask for collateral such as Land or Buildings for the term loan
- The bank may also ask for additional security on a case-to-case basis
Borrower Contribution to Total Cost (Margin Money)
- This information is not available on the bank’s website. Please check with the bank for details
Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest.
Processing Charges
- The bank charges 1.00% of the total loan amount
Documents Needed for Individuals
- Loan Application Form duly filled and signed by the applicant and co-applicant, if any
- Two Passport Size Photographs of applicant and co-applicant
- Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/ PAN Card Issuing Letter is must
- Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
- Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
Documents Needed for Proprietorship and Partnership Firms
- Loan Application Form duly filled and signed
- Partnership Deed and Partnership Registration Certificate
- ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
Documents Needed for Private Limited and Public Limited Companies
- Application Form duly filled and signed
- Company ID Proof: Company’s PAN Card
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
- Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
Reference Facts
- Central Bank of India Website: www.centralbankofindia.co.in and www.centralbank.net.in (net banking)
- Headquarters: Mumbai, Maharashtra
- Call Centre Toll-Free Number: 1800 22 1911, 1800 110 001, 1800 180 1111