"VIKAS NAVA SANJEEVINI", A NEW LOAN PRODUCT FOR REGISTERED MEDICAL PRACTITIONERS/DOCTORS

Services of Doctors/Medical Practitioners are an essential element of our society and their contribution towards preserving good health is beyond comparison. Doctors not only save lives but also make a difference by helping patients alleviate pain, recover from diseases and help to improve their quality of life. Doctors acquire knowledge and apply the same to identify medical problems faced by the patients and then use their skills to cure them.

Healthcare has become one of India’s largest sectors - both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, and medical equipment, etc. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services, and increasing expenditure by public as well private players. The Healthcare industry is always in need of funds for various purposes. It can be either for working capital needs to meet day to day operational expenses or for purchase of medical equipment, up-gradation of medical equipment or construction /purchase of new premises for hospital /clinic, etc.

Recognizing the yeoman service rendered by the Medical Profession, our Bank had earlier introduced two schemes Vikas Sanjeevini and Vikas Sarala Sanjeevini. On the feedback received from the Branches/Offices and to provide financial support on liberalized terms, the Bank has come out with a new product named Vikas Nava Sanjeevini by replacing the existing two products- Vikas Sanjeevini and Vikas Sarala Sanjeevini. The new product will come into effect from 01.04.2021.

Sl. No Details Guidelines
1. Name of the Product "VIKAS NAVA SANJEEVINI"
2. Target Group

Registered Medical Practitioners/ Doctors having their own nursing home/ hospital/ clinic/ diagnostic centres/ pharmacy, etc.

3. Constitution

Individual/partnership/companies/trust

4. Nature of finance

Working capital limit in the form of Overdraft account or term loan for purchase of assets, or a combination of both as per requirement

5. Product

Overdraft facility

Term Loan facility

6. Purpose

Working capital to meet day to day operational requirements including stock of medicine /disposables, etc.

For Setting up/ acquiring/ construction/ Expansion/ renovation of clinics, Hospitals / Pathological/ Clinical Labs, Scan / Diagnostic Centers/ X-ray Lab/ Physiotherapy centers, Nursing Homes, Sanatorium, pharmacy etc.
For purchase of Furniture, fixture and Medical/Surgical equipment vehicles, ambulances, computers, etc., required for professional use of medical practitioners.
For purchase of any other asset related to medical profession

7. Eligibility

Registered Medical Practitioners registered with bodies like, IMA, MCI, DCI, CCIM, CCH etc. and having minimum qualification MBBS/BDS/BPT/BAMS/ BHMS or equivalent professional degree in Physiotherapy/ Radiology etc.

8. Quantum of Finance

Three times of average annual income based on IT Returns of past three years with a maximum of Rs.25 lakhs subject to following

Particulars Maximum Eligible amount (Rs. in lakhs)

If applicant is having clinic/dispensary - 5.00
If applicant is having hospital / nursing home / medical facility, with up to 10 beds - 15.00
If applicant is having multi-specialty hospital/poly-clinic nursing home /diagnostic centre with more than ten beds - 25.00

85% of project cost/cost of equipment/machinery.

DSCR shall be ascertained by taking into consideration 25% growth in projected income from the latest available IT Returns for tenure of the loan for arriving at average DSCR of the project

9. Cut back/DSCR

Cutback-50%

DSCR-Average-1.50 times

10. Security

Primary: Hypothecation of assets created from the bank finance / stock of medical supplies/disposables with 15% margin

Primary: Hypothecation of assets created out of bank finance such as furniture, fixture, Medical/ Surgical equipment/ machinery/ vehicles/ ambulances/ computers, etc. In case the loan is for construction / expansion or renovation of hospital premises, the primary security shall be the registered mortgage of the premises

Collateral
Up to and inclusive of aggregate credit facility of Rs.10.00 lakhs- Compulsory coverage of credit facility under CGTMSE and collateral security is not to be taken.
Aggregate credit facility above Rs.10.00 lakhs - Registered Mortgage of Non agriculture property / NSC, KVP/ Deposits/ LIC policies, valued at not less than 25% of credit facility amount

Collateral:
Up to and inclusive of Rs.10.00 lakhs- Compulsory coverage of credit facility under CGTMSE
For above Rs.10.00 lakhs-Registered Mortgage of Non agriculture property / NSC, KVP/ Deposits/ LIC policies, valued at not less than 25% of loan amount.
Note: In case 100% of loan amount is invested in plant & machinery /immovable assets/ equipment, collateral security is not required

If the aggregate credit facility sanctioned per borrower is up to an amount of Rs.10.00 lakhs, the facility has to be mandatorily covered under CGTMSE and collateral security and guarantor should not be obtained.

However, in deserving cases, the sanctioning authority can consider covering the facility under CGTMSE even for higher amounts, up to an aggregate credit limit of Rs.50.00 lakhs, per borrower, on the merits of the case. In such cases, obtaining of collateral security and third party guarantee can be dispensed with.

However, as per the extant security policy, in all cases where the aggregate credit limit is above Rs.50.00 lakhs, collateral security and third party guarantee should be necessarily be obtained.

11. Margin 15%
12. Rate of Interest

10.00% p. a. and overdue interest at 12.00% p. a. to be compounded at monthly rests (normal rate of interest @ 10.00% p. a. + overdue rate @ 2.00% p. a.)

13. Release Operative account Against vouchers, bills, receipts to be obtained and placed on record. In case of machinery/equipment/vehicles etc., payment shall be directly through DD, against stamped receipt only.
In case of construction of hospital, engineer certificate for amount utilized shall be obtained and placed on record. Releases shall be made in stages commensurate with the progress in construction.
14. Surety / Co obligant For aggregate credit facility above Rs.10.00 lakhs - Solvent third party/ies with sufficient net worth acceptable to the Bank shall be obtained (If not covered under CGTMSE)
15. Repayment Account to be operated briskly commensurate with the limits sanctioned and to be brought to credit at least once in a year. To be renewed annually and interest to be serviced monthly. Loan shall be repayable in equated monthly installments over a period of 9 years (inclusive of repayment holiday period)
Repayment holiday can be granted for up to 6 months and up to 18 months if the loan has been granted for construction purposes.
Interest debited during repayment holiday period shall be recovered
16. Takeover In case of takeover of liabilities of from other Banks/Financial Institutions, sanctioning authority has to exercise necessary due diligence to takeover quality loans only. Copy of sanction letter, regularity certificate from the lending institution, and copy of the statement of account shall be mandatorily obtained and scrutinized. The payment should be released directly to the lending institution against a takeover of securities.
Additional credit facility up to 10% of the existing limit/balance may be provided for a takeover of liability to the applicant, if required, subject to the assessment of eligible quantum.
Partial takeover is permitted subject to the condition that the security offered is exclusively available to the Bank and is not charged to any other credit facility at any other Bank/Financial Institution. However, it should be ensured that the overdraft facility should not continue with the earlier bank and our bank simultaneously.
Seeking permission from the next higher authority for a takeover of credit facility from other banks / financial institutions are waived.