Eligibility Wholesale Pharmaceutical dealers in allopathic medicines and drugs of repute, both existing as well as new units. The existing/new unit should be profit making/projected to make profits.  The applicant should be a member of recognized  “Chemists & Druggists Association”.  The unit must deal in products of well reputed pharma companies

Purpose

To provide working capital finance to wholesale pharmaceutical dealers against hypothecation of stock/receivables.

Facility

Fund based:

Cash Credit / Bills Purchase

(With interchangeability as per bank’s norms- However, the BP portion should not exceed 30% of the total fund based limit).

Non-fund based:

Bank guarantee/Letter of Credit.

Quantum of loan

Minimum Rs.2 lacs

Maximum Rs.100 lacs

(Fund based + Non-Fund based)

Security

Primary:

Hypothecation of paid stocks/receivables

(Receivables over 6 months will not be accepted)

Collateral :

Security with value at least 100% of the limit, of which tangible security should not be less than 50%

Margin

Stocks:  25%

Receivables:  50%

Bank guarantee:  25%

Interest

Competitive rates based on credit rating of proposal