Last updated: December 17th, 2019 3:39 PM

Loan for Doctors - Baroda Arogyadham Loan

Bank of Baroda has a specialised loan scheme for doctors called Baroda Arogyadham. Under the Baroda Arogyadham loan scheme, loan can be provided for starting or expansion or renovation of nursing home or hospital or pathological lab. In this article, we look at the Bank of Baroda Arogyadham Loan scheme in detail.

Loan Eligibility

All entities having a revenue of upto Rs.150 crores other than individuals can obtain loan under the Baroda Arogyadham scheme. Hence, MSME enterprises like Proprietorship, Partnership firms, Private Limited Companies, Societies and Trusts engaged in providing medical or pathological diagnostic services are eligible under the scheme. In addition to the business entity requirement, the promoter of the business entity or charitable organisation must have a medical qualification in any branch of medical science from a recognized University and a minimum 2 years of work experience.

Amount of Loan

Loan of Rs.50 lakhs to Rs.15 crores can be sanctioned under the Baroda Arogyadham Loan scheme for purchase of medical equipment or setting up of hospital / nursing home / pathological lab or ambulance or to meet working capital requirements. In case of medical institutions setup in rural areas, maximum loan is limited to Rs.50 lakhs. For semi-urban, urban and metro areas, maximum loan is restricted to Rs.6 crores, Rs.12 crores and Rs.15 crores, respectively. The limit can be sanctioned as a term loan or working capital facility. However, working capital working capital limits can be sanctioned upto 10% of the annual sale or gross income, subject to 20% of the above ceiling limit in case of borrowers requiring both term Loan and working capital facilities. In case of borrower requiring only working capital limit, 20% of the above ceiling limit is applicable. A margin of 25% of the loan amount is applicable for all borrowers. Higher margin maybe required if adequate collateral is not provided by the borrower.

Interest & Repayment

For loan of upto Rs.3 crores, interest rate of base rate + 1.50% per annum is applicable. For loans below Rs.10 crores but above Rs.3 crores, interest of base rate + 2% per annum is applicable. For loan below Rs.15 crores, interest rate of base rate + 3% per annuam is applicable. Repayment tenor of 35 months to 84 months including moratorium depending upon the projected cash flow can be sanctioned for the Baroda Arogyadham loan scheme.

Collateral Security

Personal guarantee of the promoters of the institution or business would be required. Further, equitable mortgage over the land and building and hypothecation of equipment purchased from loan is required. In addition to the above, additional collateral security in the form of unencumbered assets of the promoters in the form of immovable properties or fixed deposits maybe required.