Target Group

  • Hospitals/ Nursing Homes.
  • Manufacturers (both Medical professionals as well as non-medical Professionals) of healthcare products.
  • Manufacturers and suppliers of medical oxygen, Oxygen cylinders, Oxygen concentrators, Pulse Oximeters.
  • Manufacturers of permitted drugs (including Covid-19 drugs), Vaccines, Ventilators, PPEs, Inhalation masks, ICU Beds etc.
  • Importers of vaccines and Covid related drugs.
  • Logistic firms engaged in critical healthcare supply.
  • Diagnostic Centres and Pathology Laboratories
  • Eye Centres, ENT Centres, Small and Medium size specialty clients like skin clinics, dental clinics, dialysis centres, endoscopy centres, IVF centres, poly clinics, X-ray labs etc.
  • Public Healthcare facilities



For Individual and Non-Individual borrowers; For acquiring premises on ownership basis or on rented basis or purchase of plot and construction thereof for the purpose of establishing / running Clinics/Nursing Homes/Pathological labs subject to compliance with license / registration requirements under laws of State / Central Govt. as the case may be.

Expansion/ renovation/ modernization of existing premises/ Clinic/ Nursing Home/ Pathological lab/hospitals.

For purchase of furniture & fixture, furnishing, renovating existing clinics/nursing homes/pathology lab/hospitals. For purchase of medical equipment for Clinics/Hospitals/ scanning centres/ pathological laboratories/ diagnostic centres, professional tools, computers, UPS, software, books.

For purchase of Ambulance/ Utility Vehicles.

To provide finance to manufacturers of healthcare products for meeting working capital requirement and acquisition of fixed assets.

  • To provide finance to manufacturers of healthcare products for meeting working capital requirement and acquisition of fixed assets.
  • To set up Oxygen plant along with power back up for medical use.
  • To manufacture permitted drugs (including Covid-19 drugs),
  • Vaccines, Ventilators, PPEs, Inhalation masks, ICU Beds etc.
  • To import Vaccines and Covid related drugs.
  • To finance logistic firms engaged in healthcare activities.
  • Financing of Receivables of hospitals empanelled under AB PM-JAY.
  • Build-up of current assets like stocking of vaccines, medicines, consumables etc.
  • For Capex LC (front ended): For import of Capital Goods, to be liquidated on due date by debit to Term Loan account.
  • Working Capital requirement for meeting recurring expenses, stock of medicines / consumables etc.
  • b) For coverage under LGSCAS;
    Non Individuals borrowers for setting up or modernising /expanding
    Hospitals/dispensaries/clinics/medical colleges / pathology labs / diagnostic centres;
    Facilities for manufacturing of vaccines /oxygen /ventilators / priority medical devices;
  • c) Public healthcare facilities.
  • ii) Individual borrowers are not eligible under LGSCAS.

Nature of Facility


Term Loan, Cash Credit, Bank Guarantee, Letter of Credit.


Quantum of loan


Minimum: No Minimum Criteria

Maximum: Up to Rs. 100 Crores



Project Debt to Equity : 3 :1
  • Term Loan - 25%
  • Cash Credit - 25% (Stocks), 40% (Receivables upto 90 days)
  • BG/LC – 10% with LGSCAS and 25% without LGSCAS
  • If Escrow a/c capturing cash flows is with Bank and average credit balance in Escrow available for Bank is 25% of BG/LC outstanding then no separate margin is required.

Rate of Interest


For Internal rating grades 1 to 4 :- RBLR + 2.00% p.a. presently effective 8.85% p.a.

For Internal Rating grades 5 to 6:- RBLR + 2.50% p.a. presently effective 9.35% p.a.

In case of coverage under LGSCAS;

ROI to be capped at 7.95% p.a. till the availability of guarantee coverage under LGSCAS after that pricing will be as per existing norms of the scheme.

(ROI to be linked to RBLR and any movement in RBLR to be adjusted in Spread in order to maintain ROI @ 7.95%)


Collateral Security

Loans up to Rs.2 Cr:


  • Nil Collateral, if covered under CGTMSE.
  • Guarantee Fee to be borne by borrower
  • For coverage under CGTMSE, partial collateral security model is also applicable as per extant CGTMSE guidelines.

However, If the borrower is not willing to pay the guarantee fee or not willing to cover the exposure under CGTMSE, then Min. 25% SARFAESI enabled collateral security needs to be obtained.

Loans above Rs.2 Cr to Rs.100 Cr:

Minimum 25% SARFAESI enabled tangible collateral security. and if

  • Hospital agrees to maintain escrow a/c for capturing cash flow and the average credit balance in Escrow is 25% of outstanding at any point then no separate margin by way of collateral is required.
  • The manufacturer is having a firm buying agreement from Govt./hospitals and agrees to maintain the escrow A/c.

In case of coverage under LGSCAS;

No additional collateral to be sought. However, project assets and other security whatsoever available in the account shall be charged to the Bank.




Cash Credit: Yearly Renewal. Repayable on demand.

Term Loan:

  • Maximum period of 10 years including moratorium period.
  • Maximum moratorium 18 months for construction of Hospital/ Nursing Home/Clinic (6 months in case of purchase of equipment only)
  • Repayment can be equated or customized in alignment with the estimated cash accrual of the unit.





Processing & other charges