Cent Rental Loan Scheme to consolidate your debts from Central Bank of India.

Leverage the power of your let out or leased property to consolidate your loans.

Central Bank of India Cent Rental Loan Scheme

This loan helps property owners who have let out or leased their property situated in metro, urban or semi-urban areas to government units, semi-government units, public sector undertakings, financial institutions, reputed corporations, multinational companies, etc. get access to funds to meet their personal needs. This secured loan can be used to meet expenses for overseas travel, medical exigencies and so on and also to consolidate high-interest debts.

Features of Cent Rental Loan Scheme (Loan Against Future Lease Rentals)

Why this Loan?

  • The Cent Rental Loan Scheme is let out or leased their property situated in metro, urban or semi-urban areas to government units, semi-government units, public sector undertakings, financial institutions, reputed corporations, multinational companies, etc. get access to funds to meet their personal needs. It cannot be used for speculative reasons
  • Borrowers can also avail this scheme to pay off their high-interest credit card debts and loans, thereby consolidating their debts
  • This loan is offered as a term loan or overdraft

Loan Amount

  • The maximum loan amount sanctioned under this scheme is Rs. 10 crore

Interest

  • Overdraft: The interest rate applicable to this loan is defined as the sum of Repo Rate, Spread and Credit Risk Premium. As of October 2020, the effective interest rate applicable to this loan is 9.90%
  • Term Loan: The interest rate applicable to this loan is defined as the sum of Repo Rate, Spread and Credit Risk Premium. As of October 2020, the applicable to this loan may range from 9.65% to 10.15%

Repayment

  • Overdraft: The overdraft must be repaid within 12 months or the unexpired lease period, whichever is lower
  • Term Loan: This loan must be repaid within 10 years or the unexpired lease period, whichever is lower

Security Needed

  • The bank asks for the assignment of future rent receivables in favour of the bank
  • The bank asks for an equitable mortgage of any property to the extent of 100% of the proposed loan for loan repayment period up to 3 years, 133% of the proposed loan for loan repayment period above 3 years and 200% in cases where there is difficulty in entering an agreement with the tenants to assign the future rentals

Margin Money (Borrowers Contribution to Total Cost)

  • As of October 2020, this information is not mentioned on the bank’s website. It is likely that the bank may not ask for any margin money as there is usually no fixed or specific purpose for which the money is needed, unlike a car loan or a home loan

Processing Charges

  • The bank charges up to 1.00% of the loan amount for processing the loan, with a minimum of Rs. 5000 and a maximum of Rs. 2 lakh

Documents Needed

  • 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
  • Documents related to the Central Bank of India Pension account
  • Letters should be addressed to the Pension Disbursing Authority and the particulars of the loans granted should be noted invariably in the Pension Register/PPO maintained with the pensioner and SB master

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