Pharmacy Business Loans

With the advancement in medical technology, the overall demand for products/services increases, and medical stores in India are nearly located on every corner. Every year the rise in pharmacy stores has been witnessed. More and more people are taking medical services, and high inflation is witnessed in the price of medicines.

If we globally observe, the demand for medicines and healthcare essentials will consistently increase in the upcoming times. After the COVID-19 pandemic, the pharmacy business has been boosted to a greater extent. Medicines, drugs, and other medical equipment/supplies have become an essential requirement for the majority of individuals and families across the country. Indian lending institutions (Banks & NBFCs) offer Business loans to fulfill the financing and credit requirements of individuals who are about to take their footsteps in the Pharmacy Business.

Today’s feature will be all about Pharmacy Business Loans also we’ll try to figure out reasons to opt for pharmacy loans and what is the needed investment to commence one. So let’s assess “How to acquire phamacy loan and why it is beneficial”?

Must Read: Understanding Business Loans

Loans for Starting Pharmacy Business - Explained

The Chemist/ Pharmacy/ Medical store can get easily started by acquiring Business loans. Lenders ensure credit facilities which ensure an aspiring pharmacy owner does not face any lack of finances in his journey of pharmacy commencement. When starting a pharmacy, there are various things one needs to take care of, primarily the finances, secondly the eligibility required to start a store and acquire funds from the lender.

One must take care of licenses, procedures and registrations. Along with that, sufficient stock is required, too and specific prescription drugs to get familiar with the changing demands of the people. Pharmacy Loans can be secured as well as unsecured; both come with the cost known as the Interest rate, and a minimal one-time amount of processing fee is charged. We’ll discuss deeply about it later in the article.

Business Loan for Pharmacy: Features & Benefits

If you have chosen to apply for a business loan, then be prepared to enjoy the benefits and add-on features associated with it.

• No Collateral/Security required
• Minimal Documentation
• Flexibility in Repayment Tenure
• High-Value sanctioning
• Hassle-free application & Processing
• Online processing, No Physical presence required

Must Read: Building strong credit profile for business loans

Interest rate & charges

If you plan to acquire a Pharmacy business loan, opt for OneNDF to get the amount finalised at a lower interest rate from leading lenders in the country. Finalise business loan at the interest rate starting from 16%, fulfil the eligibility criteria and get 5x faster disbursal. A one-time processing fee of 2.5% is additionally charged.

Reasons to Opt for Pharmacy Loan

There are multiple purposes for which the pharmacy loan is acquired. Some of the common reasons behind taking medical store loans are

• Store Renovation or Expansion
• Purchasing of Latest Equipment
• Maintaining Drugs/Antibiotics in stock
• Installation of the latest technologies/softwares in the system
• Hiring of Staff/Manpower

Investment needed to start Pharmacy Business in India

Before you finalise opening the pharmacy, make a clear and concise estimate of all the involved costs and do the needed financial protection before seeking the loan amount. The cost includes things like

• Cost of renting/acquiring space for commercial use
• Hiring a minimum of one pharmacist to work at the store
• Furniture, Fittings & Infrastructure of the store
• Medicinal stocks & Inventory
• Cold storage facilities (if needed)
• Legal paperwork - Rent agreement, registry etc
• Other miscellaneous expenses

(Note: The cost will vary from state to state, seller to seller, payment mediums, geographical locations and most importantly, the scale on which you are opening the store.)

Pharmacy Business loan: Eligibility

Lenders have made it easier for medical shops to acquire business loans by offering them easy to fulfil eligibility criteria. The criteria are specified below.

• Minimum age of 21 years and Maximum 60 years at the time of loan maturity
• CIBIL/Credit score of atleast 700 or above
• Applicant must be an Indian citizen
• Applicant should be Self-employed
• Business Vintage of atleast 3 years is required

(Note: The eligibility criteria may differ from lender to lender; check the official website before finalising the credit scheme)

Documentation Required

The list of documents required to start a Pharmacy Business in India is listed below.

• Proof of Identity - Voter ID, PAN card, Aadhar card, Driving license, Government ID
• Proof of Address - Telephone Bill, Electricity bill, Lease agreement
• Financial Documents - Audited Balance sheets, Last 2-year bank statements & Profit and loss, ITR, Statement of account
• Proof of business ownership - GST return, Incorporation certificate, MOA/AOA, Partnership agreement, Store registration certificate

• 2 Passport Size Photographs

Bottom Line

Pharmacy business loans are now easier and more accessible to get; take the help of OneNDF to get the best credit deal to date. Raise your query at the portal or contact them at +917810844844 or Write at [email protected].

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Pharmacy Business Loans: Frequently Asked Questions

Q.1 How to get a loan to start a pharmacy in India?

Get in touch with a Bank/NBFC to discuss your requirement and fulfil the eligibility criteria stated by the institution.

Q.2 Is the Pharmacy business profitable?

Pharmacy Business is highly profitable in India due to the rise in demand for medicines.

Q.3 Is it possible to open a pharmacy company without being a pharmacist?

The applicant should be a registered pharmacist with the Indian pharmacy council, along with a minimum experience of 2 years working in a pharmacy is required.

Q.4 Can I open a company after B Pharma?

After acquiring a pharmacist license from the State Pharmacy Council, one can start the shop and start selling medicines as per a doctor's prescription.