Looking to Reduce Your MSME loan bill?

Look no further. This page contains all the information you will need on Subsidy Linked Schemes for MSME Business Loans as offered by Central Bank of India.

Central Bank of India Subsidy Linked Schemes for Business Loans

Central Bank of India offers one Subsidy Linked Scheme to MSMEs, viz:

  • Prime Minister Employment Generation Programme (PMEGP)

We look at it in some detail.

Features of Prime Minister Employment Generation Programme (PMEGP)

This scheme provides interest subsidy to MSME units involved in Manufacturing and Services sector sanctioned under PMEGP. This scheme is designed to help generate employment in the rural as well as urban areas.

Why this Scheme?

  • The borrower can enjoy subsidies on loans for Capital Expenditure i.e. setting up of projects in the Manufacturing and Services/Business Sector
  • There is no income ceiling for assistance for setting up MSME projects under the Central Bank of Indian PMEGP scheme
  • This scheme is reserved for new projects sanctioned under PMEGP

Eligibility

  • The borrower should be above the age of 18 years
  • The beneficiary who wants to set up projects costing more than Rs. 10 lakh in the Manufacturing and Rs. 5 lakh in Service sector must have an education qualification of passing Class VIII
  • Only new projects sanctioned under PGMEP can avail this scheme
  • Self-help groups including those under BPL (Below Poverty Line) who have not availed subsidies under other schemes are eligible
  • Charitable Trusts, Institutions registered under Societies Registration Act 1860 and production-based Co-operative Societies are also eligible

Other features to Know

  • Negative list of activities is not permitted
  • There is no income ceiling for assistance for setting up projects under PMEGP
  • The applicant must get approval under PMEGP before applying for the loan

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

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