What Documents Are Needed for a Pharma Loan Application?

Typically, the key documents needed when applying for a business loan for a pharmaceutical company are:

• Know Your Customer (KYC) Documents: Identity and address proof of the promoters/partners/directors and photographs are required as per KYC norms.
• Business Registration Documents: Includes certificates like company registration/incorporation certificate, Shop Act license, IEC code, GST registration etc. These establish the legal identity of the business.
• Business Financial Documents: Last 3 years’ financial statements, Income Tax Returns (ITRs), bank account statements, etc. These help assess the financial health and repayment capacity.
• Business Continuity Proof: Includes licenses like wholesale/retail drug licenses, product manufacturing licenses, etc. These prove the legitimacy of operations.
• Business Plan/Loan Requirement: Details like the amount required, end-use, and projected sales/profitability help lenders understand loan rationale.
• Collateral Security: If applicable, property documents, inventory, equipment, etc, related to assets offered as collateral should be submitted.
• Pharma Specific Documents: Includes drug manufacturing licence, product approval certificates, QC process proof, quality standards compliance certificates, etc.