Allahabad Bank Loan For Doctors

Allahabad Bank has a specialised scheme for financing doctors, medical practitioners, clinics, nursing homes and other medical service providers. In this article, we look at the Allahabad Bank Loan scheme for Doctors in detail.

About Allahabad Bank

Allahabad Bank is one of the leading nationalized banks in India with over 3,209 domestic branches and an overseas branch at Hong Kong. Out of 3,209 domestic branches, more than 1,307 are at rural, 720 are at semi-urban, 656 are at urban and 526 are located at metropolitan centers. The bank also has a specialised thrust for providing financing to MSMEs with specialised branches.

Loan for Doctors

Allahabad Bank Loan For Doctors is aimed at helping doctors / medial professionals build

hospital building, hospital cum residence, nursing home, poly clinics, pathological labs or other medical facility. Loan of upto Rs.5 crores can be provided under the scheme at Urban centres, loan of upto Rs.2 crores can be provided at semi-urban centres and loan of upto Rs.1 crore can be provided under the scheme at rural branches. The loan sanctioned would mainly be a term loan, with working capital not exceeding 20% of the total loan amount.

Margin & Collateral Security

Margin of upto 35% must be furnished by the promoter(s) in case of construction of new premises. For stocks, a 25% margin is required. For receivables and bank guarantee or letter of credit, a margin of 30% and 20% are applicable respectively. In case of working capital loans, the stocks, book debts and other current assets of the business would be hypothecated. In case of term loan, equitable mortgage must be created over the loan and building. All assets purchased out of the bank loan must be hypothecated to the bank. Collateral security is not required if the loan amount is less than Rs. 10 lakhs. In case of loan above Rs.10 lakhs and less than Rs.1 crore, CGTMSE cover can be utilised. Loans above Rs.1 crore would require collateral security. The personal guarantee of the promoters would be required under all scenarios.

Interest & Repayment

The rate of interest chargeable for the loan is dependent on the credit report of the proposed borrower and the Bank's risk assessment. In any case, the interest would vary between bank's base rate and base rate + 5%. For term loan, the maximum repayment tenure provided is 84 months inclusive of 18 months of moratorium. For working capital facility, the limit must be renewed each year, based on the Banks appraisal. Other loan schemes for Doctors IDBI Bank - Loan for Doctors Canara Bank Loan for Doctors

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Frequently Asked Questions

Common questions about Doctor Loan Scheme.

The maximum loan amount that can be availed under the Allahabad Bank Loan for Doctors scheme varies depending on the location. At urban centers, doctors can avail a loan of up to Rs. 5 crores, while at semi-urban centers, the maximum loan amount is Rs. 2 crores. For rural branches, the maximum loan amount is Rs. 1 crore.

The Allahabad Bank Loan for Doctors can be used to finance the construction or establishment of various medical facilities, including hospital buildings, hospital-cum-residences, nursing homes, polyclinics, pathological labs, and other medical service providers.

The margin requirement varies based on the type of collateral. For the construction of new premises, a margin of up to 35% must be furnished by the promoter(s). For stocks, a 25% margin is required, while for receivables and bank guarantees or letters of credit, the margin requirement is 30% and 20%, respectively.

Collateral security is not required if the loan amount is less than Rs. 10 lakhs. For loans above Rs. 10 lakhs and less than Rs. 1 crore, CGTMSE cover can be utilized. However, loans above Rs. 1 crore require collateral security. In all cases, the personal guarantee of the promoters is mandatory.

For the term loan component of the Allahabad Bank Loan for Doctors scheme, the maximum repayment tenure is 84 months, inclusive of an 18-month moratorium period.

The interest rate for the Allahabad Bank Loan for Doctors is determined based on the credit report of the proposed borrower and the bank's risk assessment. However, the interest rate typically ranges between the bank's base rate and base rate + 5%.

Yes, the Allahabad Bank Loan for Doctors scheme includes a working capital facility component that should not exceed 20% of the total loan amount.

The working capital facility under the Allahabad Bank Loan for Doctors scheme must be renewed each year, based on the bank's appraisal of the borrower's financial situation.

In case of a working capital loan, the stocks, book debts, and other current assets of the medical business must be hypothecated to the bank. For a term loan, an equitable mortgage must be created over the land and building, and all assets purchased out of the bank loan must be hypothecated to the bank.

Yes, the article mentions that other banks like IDBI Bank and Canara Bank also offer loan schemes specifically designed for doctors and medical professionals to finance their medical facilities and practices.