Pharma Trade Finance
get loan and finance for pharma trading purposes
Learn more about our new specifically targeted finance loan scheme for Pharma Trade. This new scheme is formulated to finance the financial needs of Whole Sale Distributors and Dealers in Pharmaceutical products.
- Purpose
- To meet the working capital requirements of Whole Sale Dealers and Distributors engaged in the business of Pharmaceutical Products.
- Eligibility
- Any individual, HUF, Proprietary Concern, partnership firms, Limited Liability Partnership firms and Private Ltd Company engaged in pharmaceuticals trade.
- Condition: The applicant should be a member of Members of Chemists and Druggists Association or to submit an introductory letter from the concerned District Association.
- Nature of Advance
- Cash Credit (against hypothecation of stocks / receivables).
- Quantum of Credit
- Minimum loan amount Rs. 20 Lakhs. Maximum loan amount Rs. 600 Lakhs.
- Security
- Primary: - Hypothecation of stock / book debts (age of the receivables should not exceed 90 days).
- Collateral: - Collateral security in the form of land and building not less than 75% of the credit limit should be obtained. Higher collateral security cover may be stipulated by respective sanctioning authority if it is felt necessary to obtain additional collateral security.
- Submission of Stock statements
- Cash Credit: Monthly statement of stock / book debts should be obtained to arrive at drawing power. Once in a quarter, Age-wise book debts statement with break-up should be obtained.
- Insurance
- Stocks should be secured for the full value.
- Rate of Interest
- Click MCLR Rates of Interest for MCLR based interest rates. For further details please contact our nearest branch.
- Margin
- Stock & Book Debt - 25%
- Penal Interest
- Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above the applicable rate of interest.
- Processing Charges
- 0.30% for Fresh / Enhancement Portion of Credit Limit.
- 0.25% for Renewal of Existing Limits.
- Prepayment charges
- At the rate of 2.00% of amount prepaid, where the loan is closed by way of takeover by other banks.
- However, no prepayment charges will be levied in cases, where the loan/limit is closed by the borrower from own source of funds.
- Documentation Charges
- Upto Rs. 100 Lakhs - Rs. 1,500. Above Rs. 100 Lakhs - Rs. 5,000.
- Godown Verification Charges
- Rs. 3,000 per annum.
All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Goods & Service Tax (GST) on All Service Charges extra wherever applicable.
