Doctor Loan
loan for doctors to enhance infrastructure
Learn more about our Loan for Doctors Scheme under TMB Retail Loan Products.
This is the scheme which is well utilized by the doctor community to help them expand their scale of operations and provide better care and service to the patients. This loan help in the constructions / procurement of medical equipment in the hospitals / nursing homes etc.
- Purpose
- To construct / purchase hospital building, hospital building cum residence, setting up nursing home, poly clinics etc., for expansion/modernization of existing hospital premises. To purchase medical equipments, x-ray units, scanners, computers etc., To purchase ambulance and other vehicles necessary for the hospital.
- Eligibility
- Individuals (Qualified Registered Medical Practitioner) / Partnership firm / Limited Company / Trust. In case of Partnership firm / limited company / Trust, either one of the Partners / directors / trustees should be qualified registered Medical Practitioner or they should engage the services of Registered Medical Practitioners in the hospital.
- Form of Loan
- TL / DL / Overdraft (WC).
- Loan Quantum
- Maximum of Rs. 400 Lakhs.
- Rural
- Limit up to maximum of Rs. 100 Lakhs
- (Out of which working capital limit restricted upto Rs. 10 Lakhs)
- Semi-Urban
- Limit upto maximum of Rs. 200 Lakhs
- (Out of which working capital limit restricted upto Rs. 20 Lakhs)
- Urban / Metropolitan
- Limits up to maximum of Rs. 400 Lakhs
- (Out of which working capital limit restricted upto Rs. 50 Lakhs).
- Repayment
- The repayment of WCTL / WCDL / TL / DL shall be fixed on the basis of income generation of the borrower and the repayment period shall be up to the maximum of 7 years excluding maximum moratorium period of 12 months based on the project. Note: WC Limits to be renewed once in every year.
- Obtention of Financial Statements
- Upto Rs. 15 Lakhs:-
- Not Compulsory and repayment capacity will be ensured by obtaining estimated financial statements and projected profitability statements as per our bank norms. Moreover, repayment capacity will be ensured by having discreet market enquiries.
- Rs. 15 Lakhs and above :-
- The copy of the financial statements or Income Tax Assessment orders with relevant back-up papers will be obtained and analysed. Projected financial statements covering the repayment period will be obtained and analysed and repayment capacity will be ensured as per our bank norms.
- Term Loan:-
- ADSCR - 1.50:1, Debt Equity Ratio - 4.00:1.
- Assessment of working capital limit:-
- The sanction of working capital limit will be based on the size of their clinic/hospital, day-to-day expenses and various types of stock held for their clinical requirement. (Maximum 3 months requirement will be taken into account).
- Security
- Primary: On equitable mortgage over land & building, if loan is sanctioned towards construction. On hypothecation over the assets created out of our bank finance.
- Collateral Loans upto Rs. 15 Lakhs: a) Collateral security need not be insisted. b) Personal guarantee of the spouse / any creditworthy person acceptable to the bank (in case of individuals) / from promoters (in case of Partnership / Ltd. Co. / Trust) should be obtained compulsory. Note:- If the borrower is willing to offer collateral security, the branch can obtain the same.
- Loans above Rs. 15 Lakhs: Collateral Security: Minimum 50% and for deserving cases the respective sanctioning authority may relax the minimum coverage of collateral security upto 25% Along with the personal guarantee of the spouse (in case of individuals) / from promoters (in case of Partnership / Ltd. Co. / Trust). Conditions for collateral security:- Easily saleable immovable property other than agricultural property must be obtained and forced sale value must be taken. For LIC policy, surrender value can be taken as security. Our bank deposit can be taken as security. Machineries / vehicles should not be taken as security. Note:- In case, the credit limits include term loan towards construction of building, 200% of the term loan (towards construction) outstanding including unavailed amount should be deducted from the land & building value (after construction) and the residual value may be included in the collateral securities for arriving security coverage of other limits.
- For acquiring vehicles, collateral security is not necessary
- Insurance
- Comprehensive insurance with our bank clause has to be made on all the assets hypothecated to our bank.
- Margin
- For equipments, machineries, vehicles, etc. - 20% Construction / purchase of building - 25%, (In case of outright purchase, the loan amount should be calculated based on purchase value/ market value/Registration value, whichever is lower). Working Capital - 25%.
- Rate of Interest
- For credit limits secured by 100% collateral security - BR + 3.00% (13.75% p.a.).
- For credit limits secured by 50% collateral security - BR + 3.50% (14.25% p.a.).
- For credit limits secured by below 50% collateral security - BR + 4.25% (15.00% p.a.).
- For Vehicles - BR + 3.00% (13.75% p.a.).
- Current Base Rate for Lending (BR) is 10.75% p.a.
- Eventhough, the rate of interest is not linked with Credit Rating; the Credit Rating should be done as per our bank norms.
- Penal Interest
- Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest.
- Processing Charges
- Term Loan: 1.00% of Limit sanctioned without any maximum cap.
- Working Capital [Fund and Non-Fund Based]: 0.50% of the loan amount without maximum cap.
- Prepayment Charges
- At the rate of 1.00% of term loan amount prepaid. In case, where the term loan is closed by way of take over by other Bank alone will attract prepayment Charges. However, no prepayments charges will be levied in case where the term loan is closed by the borrower from own sources of funds.
- Documentation
- Documentation as per our Bank Norms.
Loan EMI Calculator:
For a Doctor Loan of Rs. 5,00,000 repayable in 84 equal monthly installments at an interest rate of 13.75% p.a., the equated monthly installment (EMI) payment shall be around Rs. 9,301.09. Click for Monthly Amortization Chart.
All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Service Tax on All Service Charges extra wherever applicable.
