Baroda Covi Healthcare Scheme

Stepping up the fight against COVID -19 and helping Micro and Small Enterprises (MSEs) battle the prevailing situation, the Bank of Baroda has launched Baroda Covi Healthcare Scheme. As part of this financial scheme, assistance is provided for MSEs/Businesses which are involved in the manufacturing of Covid-19 Vaccines, Covid related drugs, and other medical products related to fighting against the novel Coronavirus. The current article briefs the Baroda Covi Healthcare Scheme

The objective of the scheme

The key objective of the Baroda Covi HealthCare Scheme is to provide financial support to the Healthcare Sector which is evolved in the manufacturing of medical products related to fighting against the novel Coronavirus. Bank of Baroda also aims to provide loan to MSEs/business which is providing services related to COVID-19

Purpose of the Baroda Covi Healthcare Scheme

The key objective of the Baroda Covi HealthCare Scheme is as follows:

The loan under this scheme is provided for setting up, expansion, renovation, or modernization of Clinics, Nursing homes, Hospitals, Pathology Labs, Diagnostic Centre and set up Oxygen plant along with power back, etc
The HealthCare firm can avail this entity for the purchase of medical equipment including ancillary equipment.
To provide finance to manufacturers of healthcare products/manufacture permitted drugs (including Covid-19 drugs), Vaccines, Ventilators, PPEs, Inhalation masks, ICU Beds, etc. for meeting working capital requirement and acquisition of fixed assets.
Financial assistance under the scheme is also provided for importing Vaccines and Covid related drugs.
To finance logistic firms engaged in healthcare activities
Financing of Receivables of hospitals impaneled under AB PM-JAY

Eligible Entity

The following type of business entities is eligible for the Baroda Covi Healthcare Scheme

Hospitals, Nursing Homes, Diagnostic Centres, and Pathology Laboratories
Eye Centres and ENT Centres
Small and Medium-size specialty clients like Skin clinics, Dental clinics, Dialysis centers, Endoscopy centers, IVF centers, Polyclinics, X-ray labs, etc
Manufacturers of healthcare products, suppliers of medical oxygen, Oxygen cylinders, Oxygen concentrators, Pulse Oximeters, 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

Eligibility Criteria

The eligibility criteria to avail the benefits of the Baroda Covi HealthCare Scheme are as follows:

Constitution as Individual/ Proprietorship Firm/ Partnership Firm/ Trust/ Society/Public Ltd / Private Ltd. (with powers to borrow) can apply for the scheme
At least one of the Promoters/ Director should have requisite qualification in the respective branch of medical science from a recognized University like MBBS/MD/BDS or any degree in physiotherapy/ radiology etc. or professionally qualified doctors should be a part of the management of the Hospital / Nursing Home / Pathological /Diagnostic Canters
The business unit should have required approvals/registrations/permit/license, wherever applicable, from the statutory/ regulatory authority.
ITR is mandatory in the case of all existing units operating for more than one Financial Year.
The unit should not have incurred losses in past 2 years.

Type of facility

Bank of Baroda offers the following four types of assistance under the Covi HealthCare Scheme:

Term Loan
Cash Credit
Bank Guarantee (P/F)
Letter of Credit

Quantum of Loan

The minimum amount of loan is Rs.10 lakh, and the maximum is based on the project and profile of the applicant.

Tenure of loan

Baroda Covi HealthCare Scheme Term Loanloan provides a tenure of 10 years that is a moratorium of 1 year and a Working Capital loan needs to be renewed every year.

Rate of Interest

Bank of Baroda offers an attractive interest rate of about BRLLR+SP+1.65% for MSME Regulatory and MCLR + SP+1.80% for others on this scheme along with the flexible repayment options. The sanctioning branch will provide the details once the loan is approved.

Service Charges

Bank of Baroda offers 50% concession on Upfront Fee, Processing Fee, and Inspection Charges: The bank also announced a 50% concession on BG/LC Charges

Covi HealthCare Scheme Security Details

Primary Security

First and exclusive charge over the assets financed by the Bank.
In the case of Multiple Banking/ Consortium, the Loan facility shall rank pari-passu with the existing credit facilities, in respect of underlying security as well as cash flows for repayment.

Collateral Security

Nil Collateral for Loans upto Rs. 2.00 Crores, if covered under CGTMSE. Loans above Rs. 2 Cr: Minimum 25% SARFAESI enabled tangible collateral security.

The validity of Scheme

The Baroda Covi HealthCare Scheme is valid up to March 31, 2022, or till notification by the Bank of Baroda whichever is earlier.

Documents Required

The following documents are mandatory to apply for Baroda Covi HealthCare Scheme:

Proof of Identity: Voter’s ID Card / Passport / Driving License / PAN Card / Signature identification from present bankers of the proprietor, partner of director
Proof of residence: Recent telephone bills, electricity bill, property tax receipt /Passport/voter’s ID Card of Proprietor, partner of Director
Proof of Business Address
Applicant should not be a defaulter in any Bank/Financial Institution
Last three years balance sheets of the units along with income tax/sales tax returns
Memorandum and articles of association of the Company
Partnership Deed of partners
Assets and liabilities statement of promoters and guarantors along with latest income tax return
Rent Agreement (if business premises on rent) and clearance from the pollution control board
SSI / MSME registration
Projected balance sheets for the next two years in case of working capital limits and the period of the loan in case of term loan
In case of takeover of advances, sanction letters of facilities being availed from existing bankers/ Financial Institutions along with detailed terms and conditions
Photocopies of lease deeds/ title deeds of all the properties being offered as primary and collateral securities
Position of accounts from the existing bankers and confirmation about the asset being standard with them

Documents For Cases With Exposure Above Rs. 25 La

The audited balance sheets are necessary
Profile of the unit (includes names of promoters, other directors in the company, the activity being undertaken addresses of all offices and plants, shareholding pattern
Last three years balance sheets of the Associate / Group Companies
Project report
Review of account containing month wise sales, production, imported raw material, indigenous raw material, the value of stocks in process, finished good, debtors, creditors, bank’s outstanding for working capital limits, and term loan limits
Manufacturing process if applicable, the major profile of executives in the company, any tie-ups, details about raw material used and their suppliers, details about the buyers, details about major competitors, and the company’s strength and weaknesses as compared to their competitors.

Baroda Covi HealthCare Scheme Application Procedure

The applicant is requested to follow the below procedure to apply for the Baroda Covi Healthcare Scheme.

Approach the nearest Bank of Baroda branch in your locality for applying for a loan under the scheme.
Then the applicant needs to get the application form from the bank office and have to fill out the loan application form in a prescribed format.
The application form can also be downloaded from the official website. The application form is reproduced below for ready reference:

[pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2021/06/application_tracking_application.pdf"]

Apply in the prescribed format to the concerned bank official along with all the supporting documents mentioned above.
After scrutinizing the application, the loan will be sanctioned and credited to the applicant.

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