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MSME

 

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.

Purpose

 

To finance qualified medical practitioners having for setting up Clinics/ Nursing homes/ Hospitals/ Pathology Labs/ Diagnostic Centre.

  • For purchase of medical equipment including ancillary equipment
  • For Expansion/renovation/ modernization of existing hospitals/ nursing homes/ clinics.
  • 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.

Nature of Facility

 

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

Quantum of loan

 

Minimum: Above Rs. 10 Lakhs

Maximum: Up to Rs. 100 Crores

Margin

 
Project Debt to Equity : 3 :1
  • Term Loan - 25%
  • Cash Credit - 25% (Stocks), 40% (Receivables upto 90 days)
  • BG/LC – 25%
 
Margin may be reviewed
  • If Guarantee Cover is offered by the Government in lines with ECLGS
  • Hospital agrees to maintain ESCROW a/c for capturing cash flow.
  • The manufacturer is having a firm buying agreement from Govt./hospitals and agrees to maintain the ESCROW A/c.

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.

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. Requirement of Collateral can be reviewed in case:

  • If Guarantee Cover is offered by the Government in lines with ECLGS
  • Hospital agrees to maintain escrow a/c for capturing cash flow
  • The manufacturer is having a firm buying agreement from Govt./hospitals and agrees to maintain the escrow A/c.

RepaymentPeriod

 

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.

Validity

 

31.03.2022

 

Processing & other charges

 

As applicable to MSME accounts.