Looking for a MSME loan for your business from Central Bank of India?
You have landed at the right place. This page contains all the information you will need on Central Bank of India’s Construction Equipment Loan for MSMEs.
Central Bank of India Cent Construction Equipment Loan
This loan helps construction businesses in the MSME sector buy equipment, machinery or vehicles for business use. Contractors are also eligible for this loan.
Features of Cent Construction Equipment Loan
Why this Loan?
- This Central Bank of India Cent Construction Equipment Loan is meant for construction businesses in the MSME sector that need financial assistance to purchase equipment, machinery or vehicles for business use
- This loan is only offered for the purchase of brand-new equipment and vehicles. It is not offered for the purchase of pre-owned equipment
Loan Amount
- The maximum loan amount sanctioned under this loan is Rs. 5 crore
Interest
- Loans up to 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 up to 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: The interest rate applicable on loans above Rs. 1 crore is defined as the sum of three factors viz. one-year Marginal Cost of Funds Based Lending Rate (MCLR), Strategic Spread and Credit Risk Spread. Since the credit risk spread depends on the credit risk rating of the borrower, the applicable interest rate is only decided by the bank at the time of sanctioning the loan. If you want to know more details, we suggest getting in touch with a bank representative
Repayment
- This loan must be repaid within 5 years. The moratorium period for this loan is one month
Security Needed
- The bank asks for hypothecation of assets created out of loan amount as primary security for this loan
- The bank asks for mortgage of immovable property as collateral security for this loan
Borrower Contribution to Total Cost (Margin Money)
- The bank charges 25% of the total loan amount as margin
Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, you will have to contribute 20% which comes to Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.
Processing Charges
- Loans up to Rs. 5 lakh: There are no processing charges
- Loans Above Rs. 5 lakh: The bank charges Rs. 200 per lakh up to Rs. 1 lakh for loans above Rs. 5 lakh
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
- A4 size copies of the aforementioned documents
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
- All A4 size copies of the aforementioned documents
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
- All A4 size copies of the aforementioned documents
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