What are the eligibility criteria for a pharmacy business loan?

The key eligibility criteria for a pharmacy business loan are:

• Business Structure: The pharmacy can be registered as a proprietorship, partnership firm, private limited company, Limited Liability Partnership (LLP) or public limited company.
• Age of Applicants: The owners or partners should generally be between 21 and 70 years old. The maximum age is usually restricted to 70 years at loan maturity.
• Business Vintage: In most cases, pharmacies should have been operational for at least 3 years. However, newer pharmacies may also receive financing from some lenders.
• Documents Required: Loan providers usually require the last 6 months' bank statements, business registration proof, business PAN, owners' PAN details and selfie photographs. Requirements can vary slightly depending on the business structure.

In addition to these parameters, the personal credit profile of the owners, the financial performance of the pharmacy, offered collateral, and loan purpose also plays a role in loan eligibility and the amount sanctioned.

Many financial institutions provide pharmacy business loans starting from ₹1 Lakh onwards. The loan providers evaluate eligibility criteria based on submissions and credit policies. Terms and conditions apply, so pharmacy owners should check with their loan providers.