Federal Bank- Loan for Medical Practitioners

Purpose:

For acquisition of equipments, houses, buildings, flats, vehicles, furniture & fittings, medicines etc. for starting/ smooth operation of the existing private practice. Loans can also be granted for constructing/acquiring additional area or for renovation / alterations.

Loans which fall within the criteria of Professionals & Self employed are outside the purview of this scheme. The purpose shown for this scheme are indicative and not exhaustive. Doctors who have availed of facilities under professional and self employed and assistance outside this scheme will be eligible only on settlement of dues under that account.

Eligibility:

Any professional/Registered Medical Practitioner in any branch of Medical Practice including Ayurvedic, Homeo, Unani etc.

• He/She is an individual competent to enter into a contract.
• He/she is having adequate income to repay the loan. Installments of the proposed loan if any fixed shall not ordinarily exceed 25% of the total monthly income.

Quantum of Loan:

The maximum loan amount including working capital limit shall be Rs.20,00,000/-(Rs.20 lakhs) subject to the stipulated margin. The maximum working capital limit (Cash Credit) that can be sanctioned under the scheme shall be Rs.3 lakhs. Minimum amount of loan that can be considered under the scheme would be Rs.2,00,000/- (Rs.2 lakhs) subjected to the stipulated margin.

Rate of Interest:

Rate of Interest of Loan for Doctors is 14.25% p a.

Period of Loan: 

The maximum period of loan shall be 10 years in case of term loans. Where an applicant is deriving income from other sources and the income is sufficient to take care of the repayment of the loan in shorter periods, installment shall be so fixed to permit full repayment accordingly. In case of cash credit limits, period of loan shall be 12 months.

Margin of Loan:

The following would be the margin requirement under this scheme.

• Project Cost is above Rs.2 lakh and upto Rs.5 lakhs:  Margin- 25%
• Project Cost is above Rs.5 lakhs: Margin- 30%

Repayment of Loan:

The repayment of loan should start within four months from the date of last disbursement subject to a maximum period of 12 months from the date of 1st disbursement in the case of term loans.

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