About UPFC

On review of portfolio of the Corporation it has been observed that performance of the nursing home and diagnostic centers financed by the Corporation, has been exceptionally good. With banks flush with liquidity and offering competitive rate of interest, its is imperative for the Corporation to offer comparable rate of interest to this category of borrowers to retain and attract good business. Since the loan will be sanctioned under NEF, effective rate of interest shall be about 11.5%, which may be highlighted to attract the business under this scheme.

ELIGIBILITY CRITERIA

New or Established Nursing Home & Diagnostic Centers/ Clinics for purchase of Diagnostic Equipments, Medical Equipments for the treatment of ENT diseases, Establishment & Expansion of Dental Clinics, General Surgical Clinics, Pathology Lab etc. with sound track record and market reputation. Loan under this scheme shall be provided to concern promoted/had been promoted by essentially experienced and qualified professional Doctors. (All University Degree Holder in various Branches of Medical Science shall be eligible under this scheme).

PURPOSE

1. The loan shall be granted for setting up new nursing home with minimum 20 beds/ expansion of existing nursing home. However, Nursing Homes below 20 beds capacity will also be covered in the scheme and shall be allowed as Clinic with a few beds for emergency patients. In such cases, cost per bed may be standardized for convenience & uniformity.

2. The loan shall be granted for setting up new diagnostic center/expansion of existing activities, Pathology Lab, Dental Clinics, General Surgical Clinic, ENT Clinics, Eye Treatment Clinics, General Clinics etc.

3. For purchase of electro medical equipments by practicing Doctors/new doctors as mentioned for activities under para-2.

QUANTUM OF ASSISTANCE

· For fresh Doctors/ Doctors having experience up to 02 years, maximum assistance shall be restricted to Rs. 2.00 lacs for setting up clinic and purchase of Electro Medical Equipment.

· Maximum assistance that can be sanctioned to new/existing nursing home / diagnostic centers and purchase of equipment as mentioned in para-2 above shall be restricted to Rs. 10.00 lacs including NEF assistance, if is this been / had been promoted by qualified doctor having experienced between 02 to 05 years.

· Maximum assistance that can be sanctioned to new/existing nursing home/diagnostic centers and purchase of equipments as mentioned in para-2 above shall be restricted to Rs. 25.00 lacs including NEF assistance, if it has been .had been promoted by qualified doctor having experienced between 05 years to 10 years.

· Maximum assistance that can be sanctioned to new/existing nursing home/diagnostic centers and purchase of equipments as mentioned in para-2 above shall be restricted to Rs. 32.50 lacs including NEF assistance, if it has been / had been promoted by qualified doctor having experienced above 10 years.

· Soft Loan Component under NEF shall be 25 % of the capital cost in case of service sector.

COST OF PROJECT

Since the assistance under the scheme shall be granted under NEF scheme, the total cost, of project should not exceed Rs.50.00 Lacs.

LIMIT OF ASSISTANCE

· The maximum amount of assistance that shall be sanctioned as per guidelines given in above clause for each category of borrower.

PROMOTERS’ CONTRIBUTION

· Minimum 10% of the cost of project as per NEF scheme.

DEBT EQUITY RATIO

            ·      Debt Equity Ratio of 1.857 :a be maintained as prescribed in the
                   scheme, However, interest bearing unsecured loans to the extent of
                   15% of the cost of project may be insisted upon to improve promoter’s
                   contribution.

SECURITY

· The basic security for the assistance under this scheme shall be Ist/ Ist pari-passu charge existing /proposed fixed assets of the concern. And hypothecation of existing and proposed plant & machinery by way of Ist charge.

· 5% of the cost of project as Liquid Collateral Security as per norms, which is mandatory.

· Personal Guarantee of the promoters/ directors.

COLLATERAL SECURITY

In the case of Nursing Home/Clinics, where Land and Building are abailable as prime Security, Collateral security to the extent of loan amount minus the value of land, building and 50% of value of plant & machinery and other fixed assets.

CLINICS

Collateral Security in Clinics, which are on rent:- Loan amount minus 50% of plant machinery and other fixed assets.

The total Collateral Security will include 5% Collateral Security of Liquid assets.

Third party guarantee of a person of repute may be accepted in case Collateral Security as mentioned above is not available.

i) A practicing Doctor having an established practice.

ii) UPFC Loanee having regular account with us (Existing or Past Loanee).

iii) Any other person of repute having net worth not less than total exposure, i.e. loan amount plus N.E.F. amount.

MORATORIUM PERIOD

· Upto 03 years for NEF components and Maximum 02 years for FATL.

REPAYMENT PERIOD

· The repayments shall be made on Equated Monthly Instalment basis(EMI).

PROCESSING FEE

· Borrower Company shall have to pay processing fees as per prevailing
structure of fees depending upon loan amount.

SANCTIONING AUTHORITY

· Loan proposals shall be processed at R.O. and shall be placed before Competent Sanctioning Authority which is Small Loan Committee / Internal Committee.

INTEREST RATE

· As per prevailing interest rate structure for FATL AND 5% service charge p.a. for NEF Component.

PENAL INTEREST

           ·        In the event of default in payment of installment interest etc. a penal
                    interest @ 3 ½% per month shall be charged on defaulted amount for
                    defaulted period.

· In the event of default in payment of installment/interest etc. of soft loan component under N.E.F. rate of interest as per prevailing structure for FATL shall be applicable on NEF component.

SERVICE CHARGE

· As per prevailing norms.

OTHER TERMS & CONDITIONS:

Since the assistance shall be granted under NEF scheme, all terms and conditions of NEF other than mentioned shall also be applicable.