Value Add

SBI Financing to Healthcare Sector

Open term loans for service sector is for any genuine commercial purposes in line with the regular business activity of the customer Healthcare industry is one of those to which the slowdown hadn't affected much. On one hand the industry consists of doctors, hospitals, diagnostic centers, nursing homes and on the other hand it consists of manufacturers of the equipments needed by these people. Express Healthcare is an excellent platform where the above buyer and sellers can interact to exchange the knowledge about the existing technology with the ideas and needs for newer equipments designing. At this platform, our bank would like to showcase all the facilities available for all these stakeholders.

For the users of medical equipments like doctors, hospitals, diagnostic centers, nursing homes, we have Doctor Plus scheme, Open term Loans for service sector, Flexi Loans for Trade and Services, SBI Siemens Medical Equipment Plus, SBI Dental Equipment Plus, Tie-up with Apollo Health & Lifestyle Ltd. Pharma Dosage. Also we have collateral free lending schemes like CGTMSE for loans below Rs 1 crore. For the manufacturers of medical equipment, various credit facilities from SBI are like SME Credit Card, SME Smart Score, and Open Term Loan for manufacturing sector.

Under Doctor Plus scheme, we provide loans to doctors for purchasing of equipment, setting up clinics/ nursing homes, path. labs, drug stores, ambulances, computers, vehicles including expansion/renovation of existing premises. This facility is also available to medical practitioners, promoters of hospitals, clinics, X-ray labs. The borrower can enjoy flexible repayment, concessions in margins and concessions interest rates. Maximum loan amount that a borrower can avail is Rs 5 crore. Margins required are 10 per cent for loans up to Rs 5 lakh and above that its 15 per cent. For Allopathic doctors, we ask collaterals only above Rs 15 lakh loan as tangible security of at least 25 per cent and personal guarantee of promoters. This scheme is also applicable for Ayurvedic, Unani, Homeo practitioners with some alterations.

Our scheme - Open term loans for service sector is for any genuine commercial purposes in line with the regular business activity of the customer. This is a unique facility of a pre-sanctioned term loan limit with option of multiple disbursements to be sanctioned along with the working capital limit. Maximum of Rs 100 lakh can be availed under this scheme with 10 per cent margin requirements.

Under our Flexi Loans for Trade and Services, hospitals can avail facility in which the loan can be considered for holding of stock/book debt, acquisition of land/building, construction and purchase of equipment, vehicle. With a margin of 25 per cent of the expenditure maximum loan amount that can be availed is Rs 100 lakh, and the collateral requirements are of tangible security by way of immovable property, TDRs, NSCs, etc for a minimum of 35 per cent of the loan for those with a satisfactory track record of three years. For others, minimum collateral should be 50 per cent along with personal guarantees of promoters/partners/ proprietor. SBI offers term loan facility extended to buyers of medical equipments from Siemens, GE or Philips at attractive terms. The buyers include medical practitioners, nursing homes, clinics, diagnostic centre. The equipment can range between Rs 10 lakh to Rs 10 crore.

For qualified dentists for purchasing medical equipment required for dentistry, SBI Dental Equipment Plus is available as a term loan facility with maximum loan amount of Rs 10 lakh. We also have tie-up with Apollo Health & Lifestyle Ltd. For term loan/ cash credit available for franchisees of Apollo Health & Lifestyle Ltd for setting up Apollo clinic to offer consultancy, diagnostics, 24 hour Pharmacy under one roof. There is no cap on maximum loan amount, the margins required will be 33.33 per cent of term loan and 25 per cent of working capital and collateral requirements are for min 50 per cent of term loan.

We offer a special product for pharmaceutical manufacturing units for modernisation and upgradation of technology called 'Pharma Dosage'. For pharmaceutical manufacturers to upgrade to GMP norms, for schedule M compliance, for achieving energy efficiency, for purchase of pollution control equipment, for investing in CETPs, for attaining costs towards DMF filings /ANDA filings and patent filings and for developing infrastructure for setting up R&D facilities, SBI has recently designed a product variant called Pharma Dosage. Under this offering, we have reduced the margins, increased the moratorium period, increased the tenure to seven years and we offer concessional interest rates for the eligible units. There is no upper limit for loan amount and the interest rates are linked to margins and collateral.

Under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) following credit facilities are eligible for guarantee cover.

• All new and existing micro and small enterprises (both in the manufacturing sector as well as in the service sector).
• Both fund and non-fund based credit facilities viz. term loan, working capital, composite credit, LCs, guarantees, etc. can be covered.
• In respect of micro and emall enterprises (in the service sector), banks are advised to adhere to the RBI's guidelines on 'Lending to Priority Sector ' i.e., include small road and water transport operators, small business, professional and self-employed persons and all other service enterprises under the ambit of micro and small enterprises.
• Exclude retail trade, financing to educational institutions, training institutions and SHGs.

The guarantee cover under the CGTMSE would be for agreed tenure of the term loan/ composite credit. In case of working capital credit facility, the tenure is five years or block of five years. The borrower should give his option to the bank for covering the loan under the guarantee scheme of CGTMSE, and onetime guarantee fee at specified rate shall be paid upfront by the bank by debiting borrower's account, thereafter, to continue this guarantee cover.

With all these facilities and many other offerings SBI is actively financing this industry and we are continuously in the process of identifying critical needs of the industry and catering it through our newer value propositions. We expect the Express Healthcare platform will help us to update our products and make them more and more useful to the target group.

State Bank of India