Doctor Loan

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 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
Rural
Limit up to maximum of Rs.15.00 lac
(Out of which working capital limit restricted upto Rs.2.00 lac)
Semi-Urban
Limit upto maximum of Rs.50.00 lac
(Out of which working capital limit restricted upto Rs.10.00 lac)
Urban / Metropolitan
Limits up to maximum of Rs.200.00 lac
(Out of which working capital limit restricted upto Rs.20.00 lac)

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.

Obtention of Financial Statements
Upto Rs.15.00 lac:-
Not Compulsory and repayment capacity should be ensured by obtaining estimated financial statements and projected profitability statements as per our bank norms. Moreover, repayment capacity should be ensured by having discreet market enquiries.
Rs.15.00 lac and above :-
The copy of the financial statements or Income Tax Assessment orders with relevant back-up papers should be obtained and analysed. Projected financial statements covering the repayment period should be obtained and analysed and repayment capacity should 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 should 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 should 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.15.00 lakh: 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.
Collateral Loans above Rs.15.00 lakh: Option 1:-
Must be covered by tangible and marketable collateral security to cover atleast 100% of the total limits sanctioned.
Option 2:-
Must be covered by tangible and marketable collateral security to cover 50% of the total limits sanctioned along with the personal guarantee of the spouse (in case of individuals) / from promoters (in case of Partnership / Ltd.Co. / Trust).
Option 3:-
In deserving cases, based on the credit worthiness of the borrower and satisfaction of the sanctioning authority, the following relaxation may be considered:-
Must be covered by tangible and marketable collateral security to cover 25% of the total limits sanctioned 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 - 25%, Working Capital - 25%.

Rate of Interest
For credit limits secured by 100% collateral security - PLR - 2.00% (12.00% p.a.).
For credit limits secured by 50% collateral security - PLR - 1.50% (12.50% p.a.).
For credit limits secured by below 50% collateral security - PLR - 0.75% (13.25% p.a.).
For Vehicles - PLR - 2.00% (12.00% p.a.).
Current Prime Lending Rate (PLR) is 14.00% 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
Fresh & Enhanced Portion: 1.00% of the Loan Amount without maximum cap.
Renewal: 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.