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Loan Against Property

Central bank proffers loan against property for a wide array of end use. May that be for any business requirement or meeting the personal financial contingency, Central bank’s loan against has the perfect solution for each one of them.

Cent Trade

  • An overdraft or term loan facility for the business enterprise dealing as trader of reputed companies product/services.
  • Traders such as Retailers / Commission Agents /Distributors /Dealers of leading companies are considered for the loan scheme.
  • The maximum loan amount for new units which are two years old shall be Rs 10 lakhs.
  • For units which are operating for more than 2 years can avail the loan for maximum amount up to Rs 5 crores.
  • For loan amount till Rs.20.00 lakh, the property should have a market value of minimum 150 % of the sanctioned loan amount and Realizable Value as minimum 120% of the applied loan amount.
  • For loan amounting more than Rs.20.00 lakh, a minimum property value of  200% & Realizable Value of at least 150% of the loan amount is mandatory.
  • The property should be incumbent against any legal obligation and duly insured against natural and manmade calamity such as fire, riots earthquake, lightning, flood, etc.
  • However the Insurance of goods Stock or Stock in Trade is not obligatory.
  • The rate of interest applicable for Cent Trade Scheme as overdraft facility will be fixed with interest rate ranging from Base Rate + 2.25% to 3.00%.
  • The interest rate shall be computed basis a score on the score band.
  • The processing fee applicable @ Rs.300 per application for  Loan up to Rs.25,000
  • Loan amount higher than Rs.25,000 and till  Rs. 2 lakh, the processing fee will be Rs.1000 per application( sanction and renewal)
  • For loan amount higher than Rs. 2 lakh to maximum Rs. 5 crores, the  Sanction charge is  0.50 % of the sanctioned limit (max. Rs.50, 000/-) and the Renewal charge @ 0.10% of the sanctioned limit (min. Rs. 5000/-).

 

Documents required
 

  • Duly filed application form
  • For loans of Rs.10.00 lakhs and above,  Financial Statements is mandatory.
  • Photocopy of VAT /Sales tax / other Tax Registration as applicable for the territory of operation.
  • Property Details with its current valuation and Income Tax Returns for last three years.
  • Last 6 months bank account statement for existing business.

Cent Mortgage Loan

  • Central bank mortgage loan is offered for any type of Personal or Business financial requirement, other than capital market , real estate or speculative purpose.
  • Loan is offered as overdraft or term loan against immovable property situated in Metro location or Urban / Semi Urban centre.
  • Loan can be offered at only those rural centres where mortgage of title deeds is allowed for any purpose other than Agricultural.
  • The loan is available to resident Individuals between the age group of 21 to 65 years.
  • The loan is also offered to Business entities both Corporate and non-corporate.
  • The Minimum Gross yearly take home Income should be Rs. 2, 00, 000/- for Individual borrowers.
  • The loan amount for salaried persons is offered as 36 times of the net monthly income and 3 times of gross yearly income of applicant and for non- salaried persons.
  • The Maximum loan for properties located in rural areas is Rs.50.00 lakh and Rs.2 crores for properties situated in other areas.
  • In case of non individual entities, the loan amount could be 5 times average yearly cash accrual i.e. Profit after Tax +Depreciation, as per the audited Financial Statements for last 3 years.
  • The Maximum loan amount for non-individual entity is Rs.50.00 lakh for properties situated in rural area and for properties situated in other areas, the maximum loan amount could be Rs. 5 crores.
  • The property should be incumbent against any legal obligation and duly insured against natural and manmade calamity such as fire, riots earthquake, lightning, flood, etc.
  • The minimum property value should be 200% of the sanctioned loan amount.
  • For security / collateral, Equated Mortgage of non-encumbered flat / residential house / commercial/ industrial property is acceptable.
  • The property should be situated in metro/urban/ semi urban/rural centers
  • The said property should be exclusively in the name and possession of the applicant either self-occupied or rented or vacant.
  • In case of co-owner of the property, personal guarantee of the joint owner is required.
  • For Non-individual entity, the personal guarantee of all the partners/directors is mandatory.
  • The loan can be repaid in maximum 120 EMIs.
  • No prepayment charges is applicable if the loan is being closed using own source of funds. For balance transfer to other lender, 1% of principal outstanding is charged as prepayment charges.
  • Interest rate offered for Cent mortgage loan is Base Rate + 3.50%.
  • Processing charges for loan offered as term loan is charged @ 0.50% of loan amount or Rs. 40,000/- whichever is higher. For OD loans, the processing fee & Renewal fee is applicable @0.50% of loan amount (max Rs 40,000/- & Rs 5,000/- respectively).

 

Documents required

 

  1. For Salaried/ Non salaried Individuals

 

  • Identity proof such as Pan Card, Driving license, Voter Id card, Passport, Aadhaar Card etc address proof such as Electricity Bill, telephone bill, Bank’s passbook or statement etc.
  • Salary Slips for last 2 months / ITR for last 3 years
  • Application form
  • Post Dated Cheques
  • Letter of Hypothecation of property
  • Articles of Agreement
  • undertaking letter from the applicant for Comprehensive Insurance of the property as per bank clause
  •  Duly signed Blank Transfer forms by the borrower

 

  1. For Non- Individual entity.

 

  • Duly filed application form
  • Registration certificate for Companies, Proprietorship/ Partnership Firms, Societies
  • Company Identification number (CIN) , MOA/AOA, List of directors and shareholding pattern for Pvt. Ltd. Companies.
  • For societies/ associations/ clubs , the byelaws and list of office bearers is required.
  • For loans of Rs.10.00 lakhs and above, Financial Statements is mandatory.
  • Photocopy of VAT /Sales tax / other Tax Registration as applicable for the territory of operation.
  • Property Details with its current valuation and Income Tax Returns for last three years.
  • Last 6 months bank account statement for existing business
  • Last 2 years Audited Balance Sheet, Profit & Loss Account the latest IT returns

Cent Mortgage Loan for Educational Institutes

  • This special loan against property is designed to meet the financial necessity of educational institutes.
  • The loan is available for any Pvt. educational institutions formed and running for minimum five years with at least two successful passed out batches of students
  • The institution should be incorporated as under Society/Trust and affiliated to any state Educational Boards/Universities / UGC AICTE/IMC etc.
  • Loan is offered against mortgage of the immovable property including Institute building, located in any Metro location / urban or Semi-urban centers.
  • The purpose is loan for any operational expenses or financial contingency. However limited to the use of any Capital Market or Real Estate or any other Speculative activity.
  • The Educational Institution are advised to open their operating bank account , staff salary accounts and maximum possible student’s bank accounts.
  • The loan is offered as both Term Loan & Overdraft facility. The overdraft loan shall be annually reviewed and renewed.
  • Minimum loan amount is Rs 1 lakh and maximum Rs 5 crore based on the average yearly cash accrual.
  •  The property should be incumbent against any legal obligation and duly insured against natural and manmade calamity such as fire, riots earthquake, lightning, flood, etc.
  • The minimum property value should be 200% of the sanctioned loan amount.
  • For security / collateral purpose, Equated Mortgage of non-encumbered land and building is acceptable.
  • The property should be situated in metro/urban/ semi urban/ locations and exclusively in the name and ownership of the institution.
  • In case the educational institute is registered as trust, the Personal Guarantee of Trustees is required. For Institutions registered as society the personal guarantee from Principal, other Society Members such as Chairman, Treasurer or Secretary is sought-after.
  • Processing fee for Term Loan is 0.50 % of the loan amount or Rs.20, 000/- whichever is higher.
  • For Overdraft facility, the processing fee & renewal charges shall be 0.50 % of the loan amount, (max Rs.10, 000/- & Rs.2, 000/- respectively).
  • No prepayment charges is applicable if the loan is being closed using own source of funds. For balance transfer to other lender, 1% of principal outstanding is charged as prepayment charges.
  • Interest rate offered for Cent mortgage loan is Base Rate + 3.50%.
  • Minimum loan amount is Rs 1 lakh and maximum Rs 5 crore based on the average yearly cash accrual.
  •  The property should be incumbent against any legal obligation and duly insured against natural and manmade calamity such as fire, riots earthquake, lightning, flood, etc.
  • The minimum property value should be 200% of the sanctioned loan amount.


Documents Required
 

  • Duly filed application form
  • Registration certificate and affiliation certificates
  • The byelaws and list of office bearers is required.
  • For loans of Rs.10.00 lakhs and above, Financial Statements is mandatory.
  • Property Details with its current valuation and Income Tax Returns for last three years.
  • Last 6 months bank account statement for existing business
  • Last 2 years Audited Balance Sheet, Profit & Loss Account the latest IT returns
  • Personal Identify & address proof of the Trustees, Principal, and other Society Members such as Chairman, Treasurer or Secretary etc.

Important Terms & Conditions of Loan Against Property.

  1. Before fixing the repayment schedule for any loan against property sanctioned by the Bank, the customer will be consulted taking into account his paying capacity and cash flow pattern and he will be explained the method of calculation of interest and how the Equated Monthly Installments (EMI) and interest is calculated and payments through any other mode of repayment will be appropriated against interest and principal due from the customer. It is expected of the customers to adhere to the repayment schedule agreed to and approach the bank for assistance and guidance in case of genuine difficulty in meeting repayment obligations
  2. The Bank’s Policy aims at recovery of dues in the event of default and is not aimed at whimsical deprivation of the property offered as security.
  3. The Policy reckons fairness and transparency in valuation, repossession and realization of security by adopting follow up measures for recovery of dues and repossession of security in consonance with the law
  4. The recovery process through repossession of security will normally involve repossession, valuation of security and realization thereof through appropriate means, which would be carried out in a fair and transparent manner.
  5. Valuation and sale of property repossessed by the bank will be carried out as per law and in a fair and transparent manner.
  6.  The bank will have right to recover from the borrower the balance due if any, after sale of property. Excess amount if any, obtained on sale of property will be returned to the borrower after meeting all the related expenses provided the bank is not having any other claims against the customer
  7. In case of hypothecated assets after taking possession if no payment is forthcoming, a sale notice of 7 days time to respond will be sent to the borrower. Thereafter, the bank will arrange for sale of the hypothecated assets in such manner as deemed fit by the bank.
  8. If satisfied with the genuineness of borrower’s inability to pay the loan installments as per schedule which resulted in repossession of security, the bank may consider handing over the property after receiving the installments in arrears, however after being convinced of the arrangements made by the borrower to ensure timely repayment of remaining installments in future.
  9. If the amounts are repaid, either as stipulated by the bank or dues settled as agreed to by the bank, possession of seized assets will be handed back to the borrower within a reasonable time after getting permission from the competent/sanctioning authority of the bank or Court/DRT concerned, if recovery proceedings are filed and pending before such forums. The Repossession will be considered if the entire expenses and up to date full dues of the Bank are paid before the actual sale or transfer of the security and subject to court orders, if any.