When running a medical store or pharmacy, having access to working capital and financing options is crucial for managing cash flow, purchasing inventory, upgrading equipment, or expanding your business. Pharma loans provide speciality financing for pharmacies and medical stores to help meet these needs. As the healthcare and pharmaceutical industries continue to grow in India, pharma loans have become an attractive lending option for pharmacy owners.
In this article, we will explore why pharmacy and medical store owners may want to consider a specialised pharma loan for their establishment.
Why Medical Stores Opt for Pharma Loan?
Here are some of the reasons to opt for a pharma loan for medical store:
1. Access Higher Loan Amounts
A key advantage of a pharmaceutical loan for a medical store is the ability to access larger financing amounts than traditional business loans. Pharma loan providers offer this loan to eligible applicants. With higher lending limits, a pharmaceutical loan can meet scaling equipment costs, inventory purchases, a loan for medical shop expansion, working capital needs, and more as your sales volume grows.
The amount of the pharma loan for medical stores is also tailored to your current pharmacy revenue and projected financial needs. Established pharmacies with higher turnover may qualify for larger upper-range loan amounts, while startups can access entry-level financing. This scalable approach helps provide suitable growth capital at different business stages.
2. Competitive Interest Rates
In addition to flexible loan sizing, pharma financing often features competitive interest rates compared to other lending products. Depending on your store's financial profile, most pharma loans start at 10%* p.a. Well-managed pharmacies with steady cash flows can potentially obtain rates on the lower end of this range.
The interest cost savings from lower rates directly help improve your store’s profitability and free up capital for other business needs. Carefully comparing interest rate offers from different loan providers can help identify the most economical financing option.
3. Customised Repayment Plans
Pharma loans provide tailored repayment plans structured around the pharmacy’s cash inflows. For example, financial institutions may offer daily, weekly, or monthly repayment options to align with your peak sales periods. This helps ease cash flow management instead of a rigid EMIs schedule.
Many loan providers also provide flexible repayment tenures. A longer tenure involves lower EMIs payments spread over more months to free up monthly capital for inventory and pharmacy growth needs. An experienced pharma loan provider can suggest a repayment schedule that best meets your store’s financial capability.
4. Relatively Quick Loan Processing
Applying for and availing of a medical shop business loan typically involves relatively fast processing, with approvals within a few hours to days from application submission. The key documentation requirements are also simplified compared to traditional business loans.
To make credit decisions, lenders mainly assess historical pharmacy sales and revenue turnover through your GST returns, bank statements, and Know Your Customer (KYC) documents. This helps expedite eligibility evaluation and loan approval instead of needing extensive collateral or guarantees.
The faster financing access allows you to capitalise on inventory purchase discounts, scale up capacity, or promptly manage urgent working capital needs.
5. Industry-Specific Lending Approach
Pharma loan providers specialise in financing healthcare and wellness businesses, including pharmacies, medical stores, hospitals, clinics, diagnostic centres, and allied product retailers. Their industry focus equips them better to understand your pharmacy’s operating model and cash flows.
This enables them to offer well-suited loan products and payment plans aligned with the pharmacy business cycle. The specialised approach also helps loan providers to offer customised financing sizes as inventory requirements, store counts, or annual revenue grow over time.
Conclusion
For medical store owners in India seeking accessible financing to expand inventory, upgrade infrastructure, manage cash flows, or bridge working capital gaps, a pharmacy-focused loan product is worth evaluating. As a trusted financial partner, Shriram Finance understands the unique growth needs and cash flow patterns of pharmacy businesses and offers customised business loans with flexible repayment options, competitive interest rates starting from around 10% p.a., and quick approval.
