SBI Healthcare Loans: Everything You Need to Know

Anubhav Dwivedi -

Introduction:

  • State Bank of India (SBI) offers specialized healthcare loans aimed at supporting medical practitioners and healthcare providers in setting up and expanding their services. Whether you are a medical practitioner looking to establish a clinic, a hospital administrator planning to expand facilities, or a manufacturer of healthcare products, SBI has tailored solutions to meet your needs. Below are the detailed features, benefits, and FAQs about SBI Healthcare Loans.

Purpose:

The primary objective of SBI Healthcare Loans is to provide financial assistance to qualified medical practitioners and healthcare businesses for various purposes, including:

  • Setting up clinics, nursing homes, hospitals, diagnostic centers, pathology labs, drug stores, medical stores, ambulances, computers, vehicles, physiotherapy centers, ayurvedic centers, acupressure centers, yoga centers, and other therapy centers.
  • Expansion, renovation, or modernization of existing healthcare premises.
  • Providing finance to manufacturers of healthcare products, permitted drugs, and medical equipment.

Features:

Target Group:

SBI Healthcare Loans are designed for:

  • Hospitals, nursing homes, clinics, and medical colleges.
  • Diagnostic centers and pathology laboratories.
  • Specialized medical centers such as eye centers, ENT centers, skin clinics, dental clinics, dialysis centers, endoscopy centers, IVF centers, polyclinics, X-ray labs, yoga centers, etc.
  • Manufacturers of healthcare products, permitted drugs, and medical equipment.

Facilities Available:

Term Loan and/or Cash Credit:

  • Cash Credit facility is capped at Rs. 5 Crore.
  • Capex LC may be provided for domestic/overseas suppliers within overall Term Loan exposure.

Quantum of Loan:

  • Minimum loan amount: Rs. 10 lakhs.
  • Maximum loan amount: Rs. 50 Crore.

Pricing:

  • Attractive interest rates based on the rating of the borrower, external rating, or scheme-specific rating (if applicable), or as per the bank's extant guidelines.
  • EBR (Linked to Repo Rate) and currently EBR is Repo Rate + 2.65% (for MSMEs) & 6 months MCLR linked (for Non-MSMEs).

Borrower’s Margin / Contribution:

  • 25%

Repayment Period:

  • Cash Credit: Yearly renewal, repayable on demand.
  • Term Loan: Maximum period of 10 years, including a moratorium period. Maximum moratorium is 18 months, and for equipment finance, it is 6 months.

Processing Fee / Upfront Fee:

  • Cash Credit: 0.33% of the loan amount.
  • Term Loan: 0.75% of the loan amount.

Other charges as per bank guidelines will be apprised to the borrower before the sanction of loans.

Special Features:

  • Eligible applicants include individuals, proprietorship firms, partnership firms, corporates, and trusts (with borrowing powers).
  • Applicants must have a minimum of 2 years of operations in the relevant field (experience certificate/registration/licenses must be obtained and verified).
  • For hospitals, nursing homes, and clinics, the promoter should have the required minimum qualifications (e.g., MBBS, BDS, BHMS, BAMS).
  • Necessary approvals and registrations from statutory/regulatory authorities must be obtained.

Conclusion:

  • SBI Healthcare Loans offer a comprehensive financial solution for healthcare professionals and businesses, ensuring they have the necessary funds to establish, expand, and modernize their operations. With attractive interest rates, flexible repayment options, and specialized support, SBI is committed to fostering the growth of the healthcare sector in India.

FAQs:

Who can apply for SBI Healthcare Loans?

Eligible applicants include:

  • Individuals, proprietorship firms, partnership firms, corporates, and trusts (with borrowing powers).
  • Applicants must have at least 2 years of operational experience in the relevant healthcare field.

What is the minimum and maximum loan amount available?

  • The minimum loan amount is Rs. 10 lakhs, and the maximum loan amount is Rs. 50 Crore.

What types of healthcare facilities can be financed under this loan?

  • Loans can be availed for setting up clinics, nursing homes, hospitals, diagnostic centers, pathology labs, drug stores, medical stores, ambulances, computers, vehicles, physiotherapy centers, ayurvedic centers, acupressure centers, yoga centers, and other therapy centers.

What is the repayment period for SBI Healthcare Loans?

  • For cash credit, the repayment period is yearly renewal and repayable on demand. For term loans, the maximum period is 10 years, including a moratorium period (maximum 18 months, 6 months for equipment finance).

What is the interest rate applicable to these loans?

  • Interest rates are attractive and based on the borrower's rating, external rating, or scheme-specific rating, as per the bank's extant guidelines. Currently, it is EBR linked (Repo Rate + 2.65%) for MSMEs and 6 months MCLR linked for Non-MSMEs.

What are the processing fees for these loans?

  • For cash credit, the processing fee is 0.33% of the loan amount. For term loans, it is 0.75% of the loan amount.

Are there any special eligibility criteria for the promoters of healthcare facilities?

  • Yes, promoters of hospitals, nursing homes, and clinics should have the required minimum qualifications in the relevant discipline (e.g., MBBS, BDS, BHMS, BAMS) and necessary approvals/registrations from statutory/regulatory authorities.

Can manufacturers of healthcare products and medical equipment apply for this loan?

  • Yes, manufacturers of healthcare products, permitted drugs, and medical equipment are eligible to apply for SBI Healthcare Loans.

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