TIIC My Doctor Scheme

Tamil Nadu Industrial Investment Corporation Limited (TIIC) has launched My Doctor Scheme to provide financial assistance for qualified medical practitioners. Under this scheme, any registered hospitals, nursing home, day care centres, clinics, diagnostic centres, laboratories and medical doctors can avail loan of up to Rs.1.5 crores. In this article, we look at the TIIC My Doctor Scheme in detail.

Purpose of loan

The qualified medical practitioners can avail the loan amount for meeting their working capital requirements. The loan can be used for:

Setting up of clinic, pathology labs, polyclinic, hospital, diagnostic labs, X-ray labs, sonography centres, physiotherapy centres etc.
Expansion/renovation/modernisation of the existing clinic, nursing home, hospital, X-ray labs, pathology labs, diagnostic labs physiotherapy centres etc.
Purchase of medical equipments,vehicles, ambulance, computers/accessories and other essential equipments for hospital purpose.
Purchase of land for constructing hospital building.
Purchase of ready built premises for maintaining hospitals.

Eligibility Criteria

The following are the eligible conditions to avail loan under the TIIC My doctor Scheme:

Any individuals and Partnership firms are eligible to participate under the TIIC my doctor scheme.
The applicant should have recognised qualification in any branch of medical sciences like MBBS/BDS, Allopathy, Dental, Ayurvedic and Homeopathy or any other equivalent recognised degree in Physiotherapy or Radiology etc.
The applicant should possess the minimum practical experience required to establish the Hospital/Nursing Home/Clinic.
The applicant should be within the age group of 25 to 60 years and with a minimum experience of 12 months at the time of applying for the loan.

Note: Under this loan scheme, the funds cannot be raised for the purchase of second-hand machinery or medical equipment.

Quantum of Loan

The minimum quantum of assistance scheme will be Rs.10 lakhs, and the maximum quantum of assistance will be Rs.1.5 crores for the qualified Medical Practitioners. For Term Loan

Particulars	Loan Amount
In respect of Panchayat and Rural	Rs.40 lakhs
In respect of Non-Allopathy Doctor	Rs.20 lakhs
Other than above	Rs.150 lakhs

For Working Capital Loan The maximum amount of Rs.5 lakhs can be obtained to meet the working capital requirements.

Registration Fees

The applicant has to pay the registration fee at the time registration of the application.

The Registration Fee of Rs. 5,000 has to be remitted if the loan is processed by the Branch Sanction Committee (BSC).
The Registration Fee of Rs. 25,000 has to be paid if the Head Office processes the credit.

Investigation Fees

The investigation fees are inclusive of the registration fees, and the applicant is requested to make an investigation fee before the loan proposal is sanctioned by the prescribed sanction committee.

Loan Amount	Investigation Fee
Loans up to Rs.10.00 lakhs	Rs.5000
Loan amount exceeding Rs.10 lakhs and up to Rs.50 lakhs	Rs.10000
Loans above Rs.50 lakhs and up to Rs.100 lakhs	Rs.30,000
Loans above Rs.100 lakhs and up to Rs.200 lakhs	Rs.40,000

Note: 50% concession in investigation fee for applications received in Loan Melas/Customers meets which is organised by TIIC.

Rate of Interest

The proposed rate of interest charged for the loan amount will be at the rate of 11.95%. For more details about the rate of interest, kindly refer the below-attached pdf: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2019/06/int_rate-1.pdf" title="int_rate"]

Debt Equity Ratio

The debt-equity ratio fixed under this scheme are as follows:

Up to Rs. 10 lakhs: The Debt-Equity Ratio should be 3:1 for loans up to Rs. 10 lakhs.

Above Rs. 10 lakhs: The Debt-Equity Ratio should be 2:1 for loans above Rs. 10 lakhs including working capital loan.

Margin Money

The promoters must furnish the margin of up to 15% in case of purchase of new equipment. For the construction of buildings, a 25% margin is required. For the purchase of land, a margin of 35% is applicable, respectively.

Repayment of Loan

The maximum repayment period for the term loan and working capital loan is for 5 years.

Security

Primary Security

The borrower will have to provide hypothecation or Mortgage of assets purchased out of TIIC assistance.

Collateral Security

Up to Rs. 10 Lakhs

To the extent of 25% of the loan amount or third party guarantee from any respectable person acceptable to the Corporation whose net worth should be at least 2 times of the loan amount proposed or Government Employee’s Guarantee or Another Doctor’s Guarantee.
Spouse Guarantee or Personal Guarantee is required if he or she is an individual.

Above Rs. 10 Lakhs

Tangible Collateral security with a minimum of 25% coverage will have to borne by the borrower.
Spouse Guarantee or Personal Guarantee is required if he or she is an individual.

How to Apply?

For availing financial assistance from TIIC, the applicant has to apply in the prescribed application which is available in all the TIIC Offices. Fill the form with the necessary details, attach the required documents and submit it to the bank. The concerned authority will release the loan amount once your application is approved.

Refund for Rejection of Loan

In case of refusal of the loan application, the prescribed fee will be refunded as given below:

The investigation fee paid as the second instalment will be considered for refund at the rate of 50% on fees paid if the applicant withdraws the proposal before sanction. However, the initial registration fees will not be refunded.
If the corporation or the applicant rejects the loan application withdraws the application after the sanction of loan, no reimbursement will be entertained.
No refund of investigation fee will be allowed if the contractor availed for 50% concession already.

Also, know about GST rates for Medical Equipments