State Bank of Travancore has come up with a new loan scheme for medical practitioners.

Under the scheme called, ‘Doctors' Special - New Scheme', doctors will be availed loans up to Rs.100 lakh for new setting up new clinics/ renovation of existing facilities for a period of 5 to 7 years based on the income generated.

The bank will also provide loans to meet the short-term working capital requirements of the doctors, in addition to the amount extended for purchase of office furniture & fixtures, medical equipments, setting up of pathological labs, X-ray centers, drug stores; etc.

The loans would be availed to registered medical practitioners or diploma holders in the associated field of study.

The rate of interest on loans up to Rs. 5 lakh, is fixed at a rate of 8 percent till 30 April, 2011, following which the normal lending rates (prevailing then) will come into effect.

The rate on loans above Rs.5 lakh and up to Rs.25 lakh is fixed at a rate of 10 percent until 30 April, 2011, following which the FRR will be applicable.

The bank will offer loans above Rs.25 lakhs at a rate determined on basis of Credit Risk Assessment (CRAS) factor.

The scheme will avail loans at special rates up to 30 Sept, 2009.

The margin on loans for new equipments is up to 15 percent and up to 40 percent on old equipments. The loans above 3 years will be offered at a margin of up to 50 percent.

Loans up to Rs.25 lakh are covered under Credit Guarantee Fund Trust for Micro and Small Enterprises and require no collateral. However, for obtaining loans above Rs.25 lakh, the applicant must avail 100 percent tangible collateral.

All assets purchased with the bank finance are hypothecated as primary security towards the borrowing. For immovable property, equitable mortgage is applicable as security.

The scheme aims to offer bank finance to doctors in Government job, who extend consultation at their private clinics, residences and require equipments and other resources.