Information on central bank of india loan schemes, sme loans, micro financing in India | SupportBiz
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Central Bank of India

Serving over five lakh micro, small and medium enterprises (MSMEs) across India, Central Bank of India is committed to helping more and more MSMEs achieve success. This nationalized bank offers a number of schemes for the benefit of MSMEs, and is all set to launch new schemes and modify some existing schemes to extend more help to this important segment of our country’s economy.

In an exclusive interaction with Supportbiz, Sohail Ahmed, Chief Manager - Central Office, Mumbai (head office), Central Bank of India, stated that the bank has over 4,300 branches that deal with the SME segment and 535 exclusively focused on the MSME segment. These branches are committed to providing financial help to MSMEs as quickly as possible.

“We have loan schemes for people from different walks of life. We cater to the needs of the people belonging to all segments,” he said.

Ahmed stated that there are 11 schemes presently offered by the bank for MSMEs (https://www.centralbankofindia.co.in/site/MainSite.aspx?status=2&menu_id=107).

Cent Mortgage:  The purpose of this scheme is to meet personal or business finance needs, excluding those for speculative purposes, real estate or capital market activity. These loans are offered against the mortgage of immovable property located in urban/semi urban/rural areas. The rate of interest under this scheme is 13.75 per cent.

Cent Trade: This scheme caters to all types of traders, including retailers/distributors/commission agents/dealers of major companies. The rate of interest under this scheme is 13.25 per cent.

Cent Doctor Scheme: This scheme allows a person to purchase or upgrade equipments, set up a clinic, x-ray laboratory or pathological laboratory, and nursing home, purchase vehicles, stock of medicines and disposables. The person should have a recognized qualification in any branch of medical science. No collateral is required for loans of up to Rs.1 crore, which are covered under Credit Guarantee Trust Fund For Micro And Small Enterprises (CGTMSE) only.

Cent Construction Equipment Finance: This scheme provides fiannce to contractors engaged in road construction, mining, oil exploration, railways, power and irrigation, as well as sub-contractors. Finance is provided to help them purchase new machinery/equipment/vehicles for construction activities. The rate of interest under this scheme is 11 per cent. 25 per cent of the loan amount will be taken as collateral by way of mortgage of property/land or any liquid security.

Cent Contractor:  This scheme targets civil contractors, sub-contractors and construction contractors. The maximum limit for loans under this scheme is Rs. 5 crore, and the rate of interest ranges between 10.25 per cent and 14 per cent.

Cent Food Processing Plus: This scheme targets dal mills, flour mills, suji mills, oil mills and rice mills. The rate of interest under this scheme depends upon the extent of collateral security provided.

Cent Protsahan Scheme: The purpose of this scheme is to meet exhibition participation fees or transit expenses of partners or directors of firms engaged in the MSE sector, for participating in various exhibitions in India or abroad. This includes individuals between 21 and 55 years of age, having a minimum income of Rs. 5 lakh p.a. Loans of up to Rs. 1 lakh require personal guarantee. The applicable rate of interest under this scheme is 14 per cent.

Mukhya Mantri Yuva Swarozgar Yojna Scheme for Madhya Pradesh:  The objective of this scheme is to promote entrepreneurship in Madhya Pradesh. Finance is offered under this scheme without any collateral security. The rate of interest ranges between 10.25 per cent and 11.25 per cent.

Central Laghu Udhyami Credit Card: This scheme is for individuals engaged in manufacturing and providing services. No collateral security is required against such loans. The rate of interest under this scheme is 10.75 per cent.

Cent Kalyani: The objective of this scheme is to generate continuous and sustainable employment opportunities for women entrepreneurs.  The applicants should be woman entrepreneurs, above 18 years of age. The rate of interest is 10.5 per cent. No collateral is required under this scheme.

“We will be launching a scheme named Solar Heater Financing Format soon. This scheme will be useful for those who want to install solar equipments,” Ahmed said.

“We also plan to modify some of the existing schemes, and to add some more benefits in them,” said the chief manager.

“Central Bank has always surpassed other banks in terms of the facilities that it provides. The bank pays the guarantee fee for the first year on behalf of the applicant under the Cent Kalyani scheme. We also have women cells to deal with the problems being faced by women entrepreneurs,” he said.

“All of our schemes have the best features, and can be extremely useful to the people from the concerned segment,” he added.