Central Bank of India

Central Bank of India Loan Against Property

Apply Central Bank of India Loan Against Property

About Central Bank of India Loan Against Property

Central Bank of India Loan Against Property is provided for multiple purposes. It can be availed by both salaried and self-employed individuals, professionals, and businessmen. The loan is also given for corporate companies, educational institutions, retailers, and wholesale traders. The loan can be used for any purpose other than speculative and real estate purposes. The bank customises the loan as per the requirement of the borrower and offers various types of credit facilities under the Loan Against Property Scheme. The loan is provided both as a term loan as well as an overdraft facility.

Types and Features of Central Bank of India Loan Against Property

The following are the different types of Central Bank of India Loan Against Property and their features:

Types:

  • Cent Mortgage
  • Corporate Mortgage
  • Cent Rental
  • Corporate Rental
  • Cent Trade
  • Cent Mortgage Scheme for Educational Institutes

Features:

Name of the product Purpose Quantum Interest Security Repayment Charges

Cent Mortgage

Any business/

personal requirements except for real estate, speculative, and capital market activity.

  • For properties located in rural/ semi-urban areas: The minimum loan is 1 Lakh and the maximum loan is 50 Lakhs.
  • For properties located in district headquarters in semi-urban areas: The minimum loan is 1 Lakh and the maximum loan is 2 Crores.
  • For properties located in urban/metro and semi-urban branches at Goa: The minimum quantum is 1 Lakh and the maximum quantum is 5 Crores.

10.55% - 10.80% p.a.

  • EMT/registered mortgage of residential house/flat or industrial/
  • commercial property owned by the borrower situated at rural/semi-urban/urban/metros and the title deeds eligible for a mortgage for any other purposes other than agricultural purposes.
  • The property can be self-occupied, vacant, partially leased out or fully leased out.

The loan to be repaid in a maximum of 10 years period.

  • Processing charges: Nil
  • Pre-payment charges:Nil

 

Cent Trade

For all legal trading/service/

manufacturing activities except for speculative activities.

  • The minimum quantum is 2 Lakhs
  • The maximum quantum is 5 Crores.
  • The loan can be availed only as an overdraft facility.

Contact Central Bank of India for interest rate details

 

  • EMT of the property against which the loan is granted.
  • For a loan up to 20 Lakhs the market value of the property should be a minimum of 150% of the loan amount and the realisable value should be a minimum of 120% of the loan amount.
  • For a loan above 20 Lakhs, the market value of the property should be a minimum of 200% of the loan amount and the realisable value should be a minimum of 150% of the loan amount.

Running account with renewal/ review every year

  • Processing charges: Nil
  • Pre-payment charges:Nil

 

Cent Rental

The loan can be availed against future lease rentals estimate and can be utilised for any business or personal requirements and for any lawful activity other than speculative activities.

  • 75% of the future rent receivables with a maximum of 10 Crores where the unexpired lease period is up to 3 years.
  • 65% of the future rent receivables with a maximum of 10 Crores where the unexpired lease period is above 3 years and up to 6 years.
  • 55% of the future rent receivables with a maximum of 10 Crores where the unexpired lease period is above 6 years and up to 8 years.
  • 50% of the future rent receivables where the unexpired lease period is above 8 years and up to 10 years.
  • Future rent receivables will be gross rent receivable for the unexpired lease period less the advance paid, property tax, income tax and any other statutory liabilities of the lessor.

10.50% -

11.35% p.a.

Security by way of:

  • Assignment of the future rent receivables for the entire unexpired lease period.
  • Equitable mortgage value of any property of the borrower with a value up to 100% of the loan amount if the loan is repayable within 3 years and 133% of the loan amount if the loan is repayable beyond 3 years.
  • The value of the property should be 200% of the loan amount where the borrower cannot assign the future rent receivables for valid reasons.
  • Personal guarantee of all the co-owners of the property and the directors of the company other than nominated/ professional directors.
  • The loan should be repaid within 10 years or the unexpired lease period, whichever is less for both term loan and overdraft.
  • The entire rent collected for a month should be credited to the loan account.
  • Processing charges:
    • 1% of the loan amount, minimum of 5,000 and maximum of 2 Lakhs
    • Pre-payment charges: Nil

 

Cent Mortgage Scheme for Educational Institutes

The loan can be used for any operational expenses. Usage for speculative/ real estate and capital market activity is restricted.

  • The minimum quantum of loan is 1 Lakh.
  • The maximum quantum is 5 Crores.
  • The loan amount depends on the cash accruals, other liabilities and the value of the property mortgaged.

11.55% - 11.80% p.a.

  • Equitable Mortgage of the property in semi-urban/urban/metro areas.
  • The value of the property should be 200% of the loan amount.
  • The property should not be for any real estate activity.
  • Personal guarantee of the trustees in the case of trust and the personal guarantee of chairman, treasurer, secretary in the case of a society.

The entire loan should be repaid within a maximum of 10 years

  • Processing charges:0.50% of the loan amount
  • Pre-payment charges:Nil if done out of own sources and at 1% of the outstanding loan amount if done out a balance transfer.

Cent Corporate Mortgage

For any personal/

business requirement. The loan is not permitted to be used for speculative purposes, real estate, and capital activity.

  • For salaried individuals, the maximum quantum will be equal to 36 times the gross annual salary of the applicant.
  • For non-salaried applicants, the maximum quantum will be 3 times the gross annual income as per the latest ITR.
  • Maximum limit is 50 Lakhs for property located in rural areas and 2 Crores for property located at any other area.
  • In the case of proprietorship/partnership firms and companies, the maximum quantum will be 5 times the average cash accruals as per the last 3 years audited financial statements, with a maximum of 50 Lakhs for property located in a rural area and 5 Crores for a property located in any other area.

Contact Central Bank of India for interest rate details

 

  • EMT of residential/
  • commercial/
  • industrial property that is either vacant, self-occupied, partially leased-out or fully leased-out. The value of the property should be 200% of the loan amount.
  • A personal guarantee of the co-owner of the property should be available.
  • In the case of Companies, personal guarantee of all the Directors should be available.

The entire loan should be repaid within a period of 10 years

  • Processing charges: 0.50% of the loan amount, with a maximum of 40,000 if the loan is availed as a term loan and 20,000 if availed as an overdraft
  • In case of overdraft, renewal charges @ 0.50%, maximum 5,000 p.a. will be levied.
  • Prepayment charges: Nil if the prepayment is done out of own sources and 1% of the loan amount if done by a balance transfer.

Cent Corporate Rental

For any business/

personal requirement except for speculative purposes

The maximum quantum of loan is 10 Crores, depending on the unexpired lease period as given below:

  • 75% of the future rent receivables where the unexpired lease period is up to 3 years.
  • 65% of the future rent receivables where the unexpired lease period is above 3 years and up to 6 years.
  • 55% of the future rent receivables where the unexpired lease period is above 6 years and up to 8 years.
  • 50% of the future rent receivables where the unexpired lease period is above 8 years and up to 10 years.
  • Future rent receivables will be gross rent receivable for the unexpired lease period less the advance paid, property tax, income tax and any other statutory liabilities of the lessor.

Contact Central Bank of India for interest rate details

 

Security by way of:

  • Equitable mortgage of any property of the borrower, with a value up to 100% of the loan amount if the loan is repayable within 3 years and 133% of the loan amount if the loan is repayable beyond 3 years.
  • The value of the property should be 200% of the loan amount where the borrower cannot assign the future rent receivables for valid reasons.
  • Assignment of the future rent receivables for the entire unexpired lease period.
  • Personal guarantee of all the co-owners of the property and the directors of the company other than nominated/professional directors.
  • The loan should be repaid within the unexpired lease period or 10 years, whichever is earlier.
  • The overdraft limit has to be renewed every year.
  • Processing charges: 1% of the loan amount with a minimum of 5,000 and a maximum of 2 Lakhs.
  • Prepayment charges: 1% of the loan amount, if the loan is prepaid out of a balance transfer and nil charges, if the loan is pre-paid out of own funds.

 

Advantages of Taking Central Bank of India Loan Against Property

The advantages of availing Central Bank of India Loan Against Property are:

  • Various categories of loans are available under the Loan Against Property scheme to suit individual requirement.
  • The rate of interest is competitive and starting at 10.55% p.a.
  • Flexible repayment options
  • Affordable processing and prepayment charges
  • No hidden charges
  • Simple and easy documentation

Interest Rates and Other Charges for Central Bank of India Loan Against Property

The rate of interest for Central Bank of India Loan Against Property is different for different types of loans under the scheme. The rates, w.e.f. 10.10.2019, are linked to Repo Based Lending Rate (RBLR), which is 5.15% as of now. The rates vary between 10.55% and 11.80%, depending on the scheme chosen and the risk associated with the borrower.

Central Bank of India Loan Against Property - Charges

Apart from the interest rate, the following charges are applicable on Central Bank of India Loan Against Property:

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Type of charge Details

Processing charges

  • Cent Mortgage: 0.50% of the loan amount with a minimum of 40,000, if availed as a Term Loan and 20,000, if availed as an Overdraft Facility.
  • Cent Trade: No processing charges for a loan up to 25,000. For a loan above 25,000 and up to 2 Lakhs, the charges will be collected at 250 per proposal and for loans above 2 Lakhs the charges will be collected at 0.50% of the loan amount.
  • Cent Rental (both corporate and non-corporate): 1% of the loan amount with a minimum of 5,000 and a maximum of 2 Lakhs.
  • Cent Mortgage for Educational Institutions: at 0.50% of the loan amount with a maximum of 20,000 if the loan is availed as a Term loan and a maximum of 10,000 if the loan is availed at an overdraft. Processing charges for renewal of overdraft will be collected at 0.50% of the loan amount with a maximum of 2,000 for every renewal.

Prepayment charges

No prepayment charges if the prepayment is done out of own sources and 1% of the outstanding loan amount if the loan is closed by balance transfer.

Late payment fee

Penalty at additional interest on the regular interest for the overdue amount for the overdue period.

Cheque bounce charges

  • Return of inward cheques due to insufficient funds: 200 plus interest at Base Rate + 4% for the period the account is out of funds.
  • Return of inward cheques due to any other reason: 100 per instance.
  • Return of outward cheques: 100 per instance

Security Required for Central Bank of India Loan Against Property

Equitable Mortgage of the property, both commercial and residential, situated in rural, semi-urban, urban, and metro areas where the property is permitted to be mortgaged for purposes other than agricultural purposes. For Cent Rental Corporate, the properties situated in rural areas are not eligible for the loan.

For Cent Rental, personal guarantee of co-owner of the property and the partners in the case of partnership firms and directors other than nominated and professional directors has to be provided.

For Cent Mortgage for Educational Institutions, personal guarantee of the trustees in the case of a trust and the personal guarantee of the chairman, secretary, and the treasurer in the case of a society have to be provided.

Eligibility for Central Bank of India Loan Against Property

The eligibility criteria vary with the type of product chosen under the Loan Against Property Scheme.

The details of the various criteria are as given below:

  • The loan is provided against the mortgage of both residential as well as commercial/industrial properties located in Rural, Semi-Urban or Urban Areas and in Metros. In rural areas, only the properties that are eligible for a mortgage for non-agricultural purposes only will be accepted as security.
  • The minimum age for both the salaried and the self-employed should be 21 years and the maximum age stipulated for the salaried individuals is 60 years and for self-employed, it is 65 years.
  • The minimum annual income stipulated for salaried individuals is 2 Lakhs
  • Salaried individuals, self-employed individuals/professionals, businessmen, all types of traders including commission agents, companies/partnership/proprietorship firms engaged in trading, service activities and manufacturing except partnership firms where HUF is a partner are all eligible for the loan.
  • In the case of Cent Mortgage for Educational Institution, the vintage of the Educational Institution should be atleast 5 years and should have at least 2 batches of successful students who have passed out from the Institutions affiliated to various educational boards/Registered universities/UGC/AICTE/IMC, etc.
  • The property with the educational institution building situated in rural/semi-urban/urban areas and in metros is eligible for a mortgage.
  • The educational institution should not be involved in any real estate dealings or speculation
  • Where a loan takeover is permitted for educational institutions, the institution should restrict all their dealings to the Central Bank of India and should maintain their business account with the bank's branch.

Documents Required for Central Bank of India Loan Against Property

The documents mentioned below have to be submitted along with the appropriate application form for Loan Against Property and two passport size photographs.

Type of Document Salaried Self-employed

Address proof

Voter's ID Card, Aadhar Card, Driving Licence, Utility Bills

Photo ID proof

Passport, PAN Card, Driving Licence

Income proof

  • Latest salary slips for the last 3 months, Form 16 and ITR for the last 2 years.
  • Bank Statement of the salary account for the last 6 months.
  • Financial documents like the audited balance sheet and profit and loss account for the last 3 years.
  • ITR with income computation for the last 3 years.
  • Bank account statement for the last 12 months
  • Bank statement of loan accounts, if any, for the last 12 months.

Signature proof

Attestation of the signature by the present banker

A cancelled cheque of an operative account or signature attested by the present banker.

Property documents

  • Chain of documents pertaining to title deeds of all the earlier owners.
  • Legal Scrutiny Report
  • Valuation report
  • Architects report ascertaining the age of the property
  • Any other document as required by the bank to prove the marketable title of the property.

Why Apply for Central Bank of India Loan Against Property through MyMoneyMantra?

It is always convenient to apply for a loan through loan aggregators like MyMoneyMantra, especially, if you are availing the loan for the first time since they have the comparative data regarding the offers from various loan providers. Our experts will guide you to choose the best deal as per your requirement in addition to being with you and giving you an end to end support from the filling of the application until the loan disbursement.

How to Use MyMoneyMantra Loan Against Property EMI Calculator?

To use MyMoneyMantra EMI Calculator, you will have to follow some simple steps:

  • Access the website of MyMoneyMantra
  • Choose the LAP Calculator from the financial tools tab
  • Provide the details like loan amount, loan interest and tenure
  • EMI will be calculated instantly
  • A list of best quotes will appear
  • You can try various combinations using the data from the various quotes till you decide on the deal that suits your budget.
  • Continue with the filling up of loan application after deciding on the loan provider
  • The team of MyMoneyMantra will take it forward from here by collecting the application along with the required documents, submitting it to the loan provider and coordinating with the loan provider for quick disbursement.

Why Use a Loan Against Property EMI Calculator?

You can make an informed decision if you get an idea of the loan amount you will be able to get with the amount you can afford for sourcing the EMI. To make this calculation, you will have to use the EMI Calculator which makes the calculation less cumbersome while giving the accurate results.

FAQs - Central Bank of India Loan Against Property

What are the different types of loans available under the Central Bank of India Loan Against Property?

The different types of loans available are:

  • Cent Mortgage
  • Corporate Mortgage
  • Cent Rental
  • Corporate Rental
  • Cent Trade
  • Cent Mortgage for Educational Institutes

What is the rate of interest charged for the Central Bank of India Loan Against Property?

The rate of interest ranges from 10.55% p.a. to 11.80% p.a., depending on the type of loan.

What is the maximum tenure provided for the Central Bank of India Loan Against Property?

The maximum tenure provided is 10 years. In the case of Cent Rental and Corporate Rental the maximum period provided is the unexpired lease period or 10 years, whichever is earlier.

What is the maximum quantum of loan provided under the Central Bank of India Loan Against Property?

  • The maximum quantum provided for Cent Mortgage and Corporate Mortgage is 50 Lakhs for the properties situated in rural areas and 5 Crores for the properties situated in any other area.
  • The maximum quantum provided for Cent Mortgage for Educational Institutions is 5 Crores, depending on the annual cash accruals, existing liabilities and value of the property.
  • The maximum quantum for Cent Rental and Corporate Rental is 10 Crores, depending on the unexpired lease period.
  • The maximum quantum for Cent Trade is 5 Crores

What kind of properties can be mortgaged for Central Bank of India Loan Against Property?

Mortgage of residential flat/house, commercial/industrial properties are accepted for Central Bank of India Loan Against Property.

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