Hospital and Pharma Loans: Preparing a Funding Proposal

Separate the uses of finance

A hospital or pharma proposal should distinguish land or premises, construction, equipment, installation and operating cash needs. These uses may call for different facilities. SBI’s healthcare product illustrates this distinction through term lending, cash credit and eligible capital-expenditure letters of credit. A published bank product is an example, not a universal entitlement or a CreditCares loan offer.

A practical preparation checklist

• List each project cost with a quotation, estimate or other supporting basis. Identify taxes, contingencies and costs already incurred.
• Prepare an approvals register showing what is obtained, pending and required before operation. Obtain sector-specific professional advice for the project.
• Document promoter experience, ownership, borrowing authority and proposed equity sources.
• Model phased commissioning, demand, operating costs and collection timing. Separate assumptions from signed contracts or demonstrated operating history.
• Ask how cost overruns, delayed commissioning, imported-equipment currency movements and slower collections affect funding and repayments.

A moratorium is not automatically interest-free

Confirm whether a proposed moratorium defers principal, interest or both, and whether unpaid interest is capitalized. Its availability and duration depend on the lender and facility. Do not assume every hospital or pharma borrower receives an 18- or 24-month period. Request a dated repayment schedule showing when cash payments begin.

Can a new project apply?

Ask lenders specifically about their greenfield criteria. Some products require operating experience or an existing track record; suitability cannot be inferred from the sector name alone.

What should you compare between offers?

Compare approved purpose, contribution, security, disbursement conditions, rate/reset terms, fees, repayment schedule and prepayment provisions. A headline interest rate alone is not a complete cost comparison.

Discuss a ₹10 crore-plus requirement

CreditCares provides loan consultancy, with a Mumbai head office and Kolkata corporate office. For the scope of assistance, see our Health & Pharma service or request a consultation. Use the calculator for illustrations only.