Business Loan to Start a Medical Store

Looking forward to setting up a medical store? Here is how to start a medical store and the requirements you need to fulfill. Worried about funds? Get the required funding with a medical store Business Loan and repay it in easy EMIs.

How to Take a Business Loan to Start a Medical Store?

The Indian healthcare industry has grown at a rapid pace over the last few years. Thanks to medical research and advancements, people's life expectancy has improved significantly, and they spend significant amounts on medication to cure ailments and stay healthy. Moreover, the medical business was the least affected industry during the recession, and it was one of the very few facilities that remained open even during the Covid-19 lockdowns. However, opening a medical store requires several registrations and legal procedures. It also requires significant capital that you can source through a medical store Business Loan from Hero FinCorp, easily available to self-employed individuals and SMEs.

Here is a complete guide on how to start a medical store and how an EMI calculator online can help manage EMI repayments.

Types of Medical Store

Before learning how to start a medical shop, you must first decide what type of medical store you want to open. These are the different types of medical stores you can open in India:

Hospital Medical Stores

A hospital medical store is a pharmacy you can open within a hospital premises. While operating a hospital medical store, you will have to stock prescription medicines that the hospital doctors write. Your primary customers would be the patients coming to the hospital, being admitted there, and getting discharged from the facility after treatment. 

Standalone Medical Stores

Standalone medical stores are independent pharmacies you can open anywhere in a residential or commercial area. It is the most common type of medical store that most small and medium-sized business owners own and operate. While running a standalone medical store, your target customers would be residents in your specific area, and you must stay in touch with local physicians to know the types of medicines they prescribe.

Also, Check: What Is Business Loan? - Meaning, Benefits, & How to Apply?

Chain Pharmacy or Franchise Outlets

These medical stores are the franchise of a reputable pharmacy chain. These are popular among people who prefer particular brands at discounted rates. While operating a franchise medical outlet, you must stock medicines that the brand is famous for and be ready to provide online deliveries too. You will become a part of a larger pharmaceutical chain by opening a store in a mall or near a hospital.

Township Medical Stores

A township drugstore serves the business owners and residents in a particular township where they are located. While running this type of medical store, you will cater to the needs of people residing in a village or town. So, you need to stock your medicines according to the local requirement.

Stores in Government Premises

You can open a medical store in government premises under various government schemes and policies. Your store will be in direct control of the government, and you will serve patients of government dispensaries or hospitals. Such pharmacies are commonly found in government buildings and offices. 

What Are the New Rules for Medical Store in India?

While setting up a medical store in India, it is essential to follow a few rules to ensure everyone’s safety during drug delivery. Here are a few new rules for opening a pharmacy in the country:

• Before starting a medical store in India, you must obtain a drug license from your state drug control authority.
• The store premises should be registered with your local municipal authority and comply with all fire safety regulations and other guidelines.  
• Having a qualified pharmacist in the shop is mandatory.
• The medical store should stock various types of medicines, both ayurvedic and allopathic, and a good stock of over-the-counter (OTC) drugs.

If you are falling short of funds to cover any of these requirements, you can get a loan for a medical shop from Hero FinCorp and fulfil the expenses without hassle.

Requirements for Opening a Medical Store

The requirements for opening a medical store differ for retail and wholesale businesses. These are as follows:

Area Specification

The space requirements for medical shops are little and depend on several factors. Many medical stores are quite small. According to the rules, the minimum space required for a retail medical store is at least 10 sq. m. However, if you are opening a medical shop for wholesale business, it must be at least 15 sq. m. If you need more funds to open a store of the appropriate size, you can fund its cost with a medical store Business Loan from Hero FinCorp. 

Storage Facility

Certain drugs, like vaccines, insulin injections, sera, etc., have labelling specifications requiring storage in dark and cool places. Therefore, your storage facility must have a refrigerator, and the medical store should be air-conditioned to keep the medicines in good condition.

Technical Staff

A retail medical store should have a registered pharmacist overlooking the sale of drugs. For a wholesale medical business, you must have a registered pharmacist with at least one year of experience or an individual with a minimum of four-year experience, according to the Department of Drug Control. Moreover, the registered pharmacist should have approval from the State Pharmacy Council.

Types Of Licence For Medical Shop

Now that you know how to start a medical shop, you must know the types of licence you must obtain. Since they differ for retail and wholesale medical stores, here’s some important detail to know:

Retail Drug License

A general chemist shop needs a retail drug license or RDL that you can obtain by depositing a small amount. A Business Loan for medical store can help you cover this cost, as these loans come with no end-use restrictions. However, remember that you can complete the registration process only if you have a diploma or degree in pharmacy from a recognised institution or university.

Wholesale Drug License

Do you want to sell or supply drugs in bulk? You must obtain a wholesale drug license or WDL to do the same. The eligibility conditions and registration requirements for a wholesale drug license are more lenient than a retail drug license. However, there will be several limitations that you must work under.

Documents Required for Medical Store Registration

These are a few mandatory documents you will need to provide for medical store registration in India:

• Application for a pharmacy licence
• Challan invoices or proof of deposited fee for a drug licence
• The medical store’s key plan or blueprint
• The store’s basis of possession 
• Address and identity proof of all owners and partners
• Ownership proof of the medical store premise
• Appointment letters of employed registered pharmacists
• Full-time working registered pharmacists affidavit
• Non-conviction affidavit of directors, partners, or proprietor under the Drugs and Cosmetics Act, 1940

How Can a Business Loan Help You to Open a Medical Store?

A Business Loan helps you to Open a Medical Store in the following ways:

• Excess to ample funds to cover various expenses
• Competitive interest rates to keep the loan cost affordable
• Flexible repayment terms that make EMIs more manageable
• Easy loan process due to simple eligibility criteria, minimal documentation requirements, and 100% digital loan procedure
• Instant approval and quick disbursal

Steps to Apply for a Business Loan for Opening Medical Store

The Business Loan application procedure involves the following immediate steps: 

Step 1: Visit the Hero FinCorp website and go to the Business Loan page.

Step 2: Click ‘Apply Now’ to fill out an application form.

Step 3: Enter a few business-related details.

Step 4: Scan and upload the necessary documents.

Step 5: Wait for verification and approval.

Step 6: Review and accept the loan offer.

Conclusion

Opening a medical store is a good business option in India, considering the country's growing healthcare sector. However, you must fulfil the registration, licensing, and operational guidelines to establish the same. Since opening a medical shop might require significant funding, you can cover the expense with a loan for opening a medical store. You may obtain a Business Loan without collateral from Hero FinCorp at competitive interest rates and repay it in easy EMIs spread across a flexible repayment term.  

Frequently Asked Questions

1. How Much Investment Is Needed to Start a Medical Store?

The capital required to start a medical store depends on its size, type, and locality. Obtaining the required registrations and licenses also needs a little expenditure. So, evaluate these expenses to know the investment required to start a medical shop.

2. What Is the Profit of Opening a Medical Store?

Opening a medical store is a profitable business, considering the increasing healthcare requirements of people. As the medical industry improves, new medicines keep launching every day to help people live better lives. The business remains open even during emergencies, and there is no chance of it slowing down. 

3. Which Medical Business Is Profitable?

Opening a retail medical store is the most profitable medical business. With a medical store Business Loan, self-employed professionals can establish a retail or wholesale pharmacy business and start attracting customers with a little bit of marketing and discounting.