Centrum SME Loans - Fast Business Funding

Enter Pincode

Personal Details

Key Features of Centrum Finance SME/MSME Loans

Flexible Loan Structures: Centrum provides SME loans in various forms and structures to meet diverse business needs. Loans can be customized based on cash flow, repayment capacity, and growth stage.
Focus on Underserved Segments: Targets SMEs and MSMEs in the building or diversification phase, particularly those in non-metro areas and Tier II cities not adequately served by traditional banks.
Quick Processing: Responsive loan application and approval process designed for swift disbursal to address urgent business needs.
Collateral Options: Offers both secured (with collateral) and unsecured loan options. Participates in the Emergency Credit Line Guarantee Scheme (ECLGS) for collateral-free loans.
Loan Amount: Minimum: ₹50,000
Maximum: Up to ₹25 crore for unsecured loans, depending on eligibility. ECLGS loans capped at 20% of outstanding credit or ₹5 crore.
Interest Rates: Competitive rates typically ranging between 8.40% to 24% p.a. based on:
Borrower's credit profile (CIBIL score preferably above 650). Business financial health and stability. Loan type (secured/unsecured) and tenure.

- Loan Tenure: Flexible repayment options from 1 to 15 years. Customizable repayment schedules to align with business cash flow
- Security and Collateral: Secured Loans: Require collateral like property, machinery or receivables
  Unsecured Loans: Based on creditworthiness without collateral
  ECLGS Loans: Collateral-free with government guarantee
- Repayment Options: Flexible EMI options based on business cash flow. Option for early repayments in most cases. Various repayment modes including ECS, NACH, and postdated cheques.
- Processing Fees and Charges: Transparent fee structure disclosed upfront. Competitive processing fees aligned with industry standards.
- Eligibility Criteria: Business must qualify as SME/MSME per Government of India definition.> Minimum operational history of 6 months to 2 years. Valid business registration (Udyam, GST, Shop Act License etc.). Clean credit history with no defaults. For ECLGS: Operational as of February 29, 2020 with turnover up to ₹250 crore
- Digital Application Process: Online application available through Centrum website. Quick approval process with responsive service. Minimal documentation required for pre-approved customers.
- Government Support and Schemes: Emergency Credit Line Guarantee Scheme (ECLGS) coverage for collateral-free loans. Supports GST-registered businesses (with exemptions for some MSMEs)<. Aligns with government initiatives for MSME growth.
- Additional Benefits: Advisory support for financial planning and loan utilization. Sector-specific solutions for various industries. Focus on underserved Tier II cities and metros. Online account management facilities.
- Quick Disbursal: Streamlined processes enable faster approval and disbursal compared to traditional banks. Emphasis on responsive service for time-sensitive business needs.
- Repayment Flexibility: EMIs tailored to business cash flow patterns. Multiple repayment options to suit different business models.
- Purpose and Usage: Funds can be used for working capital, expansion, asset purchase, debt consolidation. Must be used for legitimate business purposes only.
- Eligibility: Available to proprietorships, partnerships, private limited companies and other registered entities. Must meet minimum operational history and financial stability requirements.
- Minimal Documentation: Standard requirements include KYC, business proof, financial statements. ECLGS loans may require proof of operations as of February 2020. Collateral documents needed for secured loans only.
- Transparency: Clear communication of all terms and conditions. No hidden charges policy.
- Digital Lending Features: Online application options available. Digital document submission for faster processing.
- Specialized Loan Types: Working Capital Loans for operational expenses. Term Loans for long-term investments. Trade Finance for businesses in international trade. Machinery Loans for equipment purchase.
- Creditworthiness Improvement: Timely repayments help build business credit profile. Access to larger loans and better terms in future.
- Government Scheme Support: ECLGS loans provide collateral-free financing. Aligns with national initiatives for MSME growth.
- Customized Solutions: Tailored products for different business needs and sectors. Advisory services to optimize loan utilization.

Benefits of Centrum Finance SME/MSME Loans

Access to Timely Capital: Quick access to funds for critical business needs with responsive processing ensuring disbursal within days.
Support for Business Growth: Enables scaling operations, entering new markets or diversifying product lines to increase revenue.
Flexible Financing Options: Both secured and unsecured loans available with tenures from 1 to 15 years to suit different needs.

- Collateral-Free Options: Through ECLGS scheme, providing collateral-free loans to eligible MSMEs, especially valuable for small businesses.
- Improved Cash Flow Management: Helps cover operational costs and bridge cash flow gaps without resorting to high-cost informal lending.
- Competitive Interest Rates: Rates aligned with industry standards (8.40% to 24% p.a.) based on creditworthiness and loan type.
- Creditworthiness Building: Timely repayments help build strong credit history for better future borrowing terms.
- Versatile Usage: Funds can be used for working capital, expansion, asset purchase or debt consolidation.
- Economic Impact: Supports job creation and local economic growth, particularly in Tier II cities.
- Guidance and Advisory: Offers advisory services to help optimize loan utilization and improve financial planning.
- Technology Convenience: Online application options reduce paperwork and processing time for busy entrepreneurs.
- Empowerment of Underserved Areas: Focus on metros and Tier II cities helps bridge financing gap for local businesses.

How to Apply for Centrum Finance SME/MSME Loans

1. Assess Your Business Needs and Eligibility
- Determine the loan purpose (working capital, expansion, etc.)
- Check eligibility criteria:
  - Business classification as SME/MSME
  - Minimum 6 months to 2 years operational history
  - Valid business registration
  - Clean credit history
2. Gather Required Documents
- Identity Proof: PAN card, Aadhaar card
- Business Proof: Udyam Registration, GST certificate
- Financial Documents: ITR, bank statements (6-12 months)
- Collateral Documents: For secured loans only
- ECLGS-Specific Documents: If applicable
3. Contact Centrum Financial Services
- Online: Visit www.centrum.co.in SME loan section
- In-Person: Visit nearest Centrum branch
- Customer Support: Call or email for guidance
4. Submit the Loan Application
- Complete application form with business details
- Attach all required documents
- Specify loan type (secured/unsecured/ECLGS)
5. Loan Assessment and Verification
- CFSL evaluates business financials and creditworthiness
- May conduct field visits or request additional information
- Advisory support available for application optimization
6. Loan Approval and Disbursal
- Receive approval notification with terms
- Sign loan agreement
- Funds disbursed to business account within days

Eligibility Criteria for Centrum Finance SME Loans

1. Business Classification:
Must qualify as SME/MSME per Government of India definition:
- Micro: Investment ≤ ₹1 crore, Turnover ≤ ₹5 crore
- Small: Investment ≤ ₹10 crore, Turnover ≤ ₹50 crore
- Medium: Investment ≤ ₹50 crore, Turnover ≤ ₹250 crore
Valid Udyam Registration or other MSME certification required
2. Operational History:
Minimum 6 months to 2 years of business operations
Startups may qualify for smaller loans or ECLGS
Proof of operations via GST returns or bank statements
3. Business Registration:
Must be legally registered under applicable laws:
- Sole Proprietorship: Shop Act License or GST
- Partnership: Partnership deed
- Company: Certificate of Incorporation
4. GST Compliance:
GST registration typically required for turnover above thresholds
Exemptions may apply for some MSMEs under ECLGS
5. Financial Stability:
Demonstrate positive revenue and cash flow
No significant recent losses
Submit ITR, financial statements, bank statements
6. Creditworthiness:
CIBIL score preferably above 650-700
No defaults or blacklisting by financial institutions
7. Collateral (for Secured Loans):
Property, machinery or other assets required as collateral
Not required for unsecured or ECLGS loans
8. Legal Status:
No ongoing legal disputes or insolvency proceedings
Declaration of no blacklisting required
9. ECLGS Specific:
Operational as of February 29, 2020
Turnover up to ₹250 crore
Proof of operations during reference period

Documents Required for Centrum Finance SME Loans

1. Identity Proof:
PAN card (individual or business)
Aadhaar card
Passport (if available)
Voter ID or Driving License (as secondary proof)
2. Business Proof:
Udyam Registration Certificate
GST Registration Certificate (if applicable)
Shop Act License (for proprietorships)
Certificate of Incorporation (for companies)
Partnership Deed (for partnerships)
3. Financial Documents:
Income Tax Returns (ITR): Last 2-3 years
Profit and Loss Statements: Audited if available
Balance Sheets: Audited if available
Bank Statements: Last 6-12 months
4. Collateral Documents (for Secured Loans):
Property Documents: Title deed, sale agreement
Valuation Report: From approved valuator
Encumbrance Certificate
Asset Details: For machinery/vehicles
5. ECLGS-Specific Documents:
Proof of Operations as of February 29, 2020
Turnover Details
Existing Loan Details
GST Exemption Declaration (if applicable)
6. Additional Documents (if requested):
Business Plan
Loan Utilization Statement
Board Resolution (for companies)
Credit Report

Factors Considered for Centrum Finance SME Loans

1. Business Classification and Registration:
Must qualify as SME/MSME per government norms
Proper registration (Udyam, GST etc.) is mandatory
2. Operational History:
Minimum 6 months to 2 years operations
Longer history improves approval chances
3. Financial Performance:
Revenue, profitability and cash flow stability
Consistent financials strengthen application
4. Creditworthiness:
CIBIL score preferably above 650-700
No defaults or blacklisting
5. Collateral (for Secured Loans):
Asset value and clear title
Not required for unsecured/ECLGS loans
6. Loan Purpose:
Must be for legitimate business needs
Clear purpose enhances approval chances
7. Debt-to-Income Ratio:
Lower ratio indicates better repayment capacity
Ideally below 40%
8. GST Compliance:
Mandatory for businesses above threshold
Regular filings demonstrate compliance
9. Industry Sector:
Stable or high-growth sectors preferred
ECLGS prioritizes certain impacted sectors
10. Repayment Capacity:
Ability to meet EMIs based on cash flow
Strong capacity supports larger loans

Frequently Asked Questions (FAQs)

1. What are SME loans from Centrum Finance?

SME loans from Centrum Finance are financial products designed to meet the funding needs of small and medium enterprises. These loans support purposes like working capital, business expansion, asset purchase, and debt consolidation, with flexible structures and quick disbursal.

2. Who can apply for Centrum SME loans?

Eligible Entities:
- Businesses classified as SME/MSME per Government of India norms
- Proprietorships, partnerships, private limited companies
- Operating in manufacturing, trading or service sectors
Location: Primarily metros and Tier II cities
Operational History: Minimum 6 months to 2 years

3. What types of SME loans are available?

Secured Business Loans: Against collateral like property/machinery
Unsecured Business Loans: Based on creditworthiness
ECLGS Loans: Collateral-free under government scheme
Working Capital Loans: For operational expenses
Term Loans: For long-term investments

4. What loan amounts are available?

Minimum: ₹50,000
Maximum: Up to ₹25 crore for unsecured loans
ECLGS loans: Up to 20% of outstanding credit or ₹5 crore

Exact amount depends on eligibility and business profile.

5. What are the interest rates?

Interest rates typically range between 8.40% to 24% p.a. depending on:

Loan type (secured/unsecured)
Borrower's credit profile
Business financial health
Collateral value (for secured loans)

6. What is the loan tenure?

Flexible repayment options from 1 to 15 years depending on:

Loan type and amount
Business cash flow
Purpose of the loan

7. What documents are required?

Basic Documents:
- Identity proof (PAN, Aadhaar)
- Business proof (Udyam, GST, registration)
- Financials (ITR, bank statements)
For Secured Loans: Collateral documents
For ECLGS: Proof of operations as of Feb 2020

8. How to apply for SME loans?

Steps:
1. Assess needs and eligibility
2. Gather documents
3. Contact Centrum (online/branch)
4. Submit application
5. Undergo assessment
6. Receive approval and funds
Options: Online via website or in-person at branches

9. Is collateral required?

Secured Loans: Yes (property, machinery etc.)
Unsecured Loans: No
ECLGS Loans: No (government guaranteed)

10. How long does approval take?

Typically a few days to a week depending on:

Document completeness
Loan type (secured/unsecured)
Verification requirements

ECLGS loans may have faster processing.

11. What are the processing fees?

Competitive processing fees aligned with industry standards.
Exact fees disclosed during application based on loan type and amount.

12. Can I prepay the loan?

Yes, most Centrum SME loans allow prepayment:
- Partial or full prepayment options
- May be without penalties (check terms)
- Early closure possible for gold loans

List of Centrum Financial Services Finance SME Loans

Secured SME Loans
Unsecured SME Loans
Emergency Credit Line Guarantee Scheme (ECLGS) Loans

Term Loans
Machinery and Equipment Loans
Business Expansion Loans
Debt Consolidation Loans

Invoice Financing Loans
Trade Finance Loans
Inventory Financing Loans
Commercial Vehicle Loans

Overdraft Facility for SMEs
Project Finance Loans
Microfinance Loans for MSMEs
Working Capital Loans

Create Account

Sign In

Welcome Back!

Hello, Friend!

Reset Password

Reset Your Password

Change Password

Update Your Password

Logintoloans Assistant