Introduction
The Central Bank of India has launched the Cent CA/CS/CMA scheme, tailored specifically for finance professionals seeking to establish their own businesses. This initiative provides favorable interest rates and various financing options for eligible individuals. Below, we explore the details and advantages of this scheme for finance professionals.
Detailed Analysis
The Cent CA/CS/CMA scheme is designed for professionals registered with ICAI (Institute of Chartered Accountants of India), ICSI (Institute of Company Secretaries of India), and ICMAI (Institute of Cost Accountants of India) who wish to set up their own practices. The scheme is available for individuals with a maximum age of 70 years and offers financial support for various needs, such as:
- Purchase of ready-built offices
- Construction of new office spaces
- Procurement of furniture and fixtures
- Acquisition of computers and other equipment
- Working capital requirements
Salient Features of the Cent CA/CS/CMA Scheme
- Target Group: Professionals registered with ICAI/ICSI/ICMAI.
- Maximum Age: 70 years.
- Purpose: Funds can be used for:
- Purchase of ready-built or new offices
- Acquisition of furniture, fixtures, and computers
- Meeting working capital requirements
- Eligibility:
- Minimum: Rs. 5 lakh
- Maximum: Rs. 50 lakh (with CGTMSE coverage) and Rs. 200 lakh (with 100% collateral security)
- Quantum of Finance:
- For registration as CA/CS/CMA up to 5 years: Maximum Rs. 20 lakh.
- For registration above 5 years: Maximum Rs. 50 lakh (with CGTMSE) or Rs. 200 lakh (with 100% collateral security).
- Type of Limits:
- Overdraft (OD) for 12 months (annual review)
- Term Loan (TL) for 144 months, including 6 months of moratorium.
Financing Options
Eligible professionals can access financing as follows:
- Amount: Ranges from Rs. 5 lakh to Rs. 50 lakh with CGTMSE coverage, and up to Rs. 200 lakh with full collateral security.
- Determination of Finance Quantum: The financing amount is contingent upon the length of registration as a CA/CS/CMA:
- Up to 5 years of registration: Funding up to twice the gross annual receipts, capped at Rs. 20 lakh.
- More than 5 years of registration: Funding up to five times the gross annual receipts, with a maximum of Rs. 50 lakh under CGTMSE and Rs. 200 lakh with full collateral.
Flexible Terms
The scheme provides flexible financing terms, including:
- Overdraft Facilities: Available for 12 months with annual review.
- Term Loans: Offered for 144 months, inclusive of a 6-month moratorium period.
Additional Information
Professionals are encouraged to visit the Central Bank of India website or their nearest regional/branch offices for further information. Contact details for inquiries are provided below.
Conclusion
The Cent CA/CS/CMA scheme by the Central Bank of India represents a significant opportunity for finance professionals aspiring to become entrepreneurs. With attractive interest rates, adaptable financing options, and readily available assistance, this scheme empowers professionals to achieve their business goals. The Central Bank invites collaborations with relevant institutions to promote this initiative among their members. Through such supportive measures, finance professionals can significantly contribute to the country's economic development.