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How to Open a Medical Store and Finance it with a Business Loan?

Published on Sept 12, 2022Updated on Sept 12, 2023

How to Open a Medical Store and Finance it with a Business Loan?

Medical technology is advancing in leaps and bounds. We expect to avail quality medical services, which include access to top of the line medical stores. 

This is possibly the primary reason why there has been an exponential growth of medical stores around the country in the last decade. This blog explores how to open a medical store and financing it with a business loan.

Medical Stores are an Indispensable Asset to the Public

The COVID-19 pandemic has highlighted the context of evolving health issues on a global scale. Needless to say, this has spiked the demand for quality medical supplies and healthcare essentials. 

The average consumer in the pre-pandemic days spent about 20% of their monthly budget on healthcare. While the outbreak is still not completely out of the picture, this budget allocation towards healthcare essentials has increased considerably. 

Be it medicines, healthcare supplies or sanitisation products, the general public in India is heavily dependent on medical stores to provide these services.

This is the reason why people across India are exploring the possibility of how to open a medical shop. In the current scenario, this could be a booming business opportunity as the service is indispensable to the masses.

The potential to scale the business early on is also tremendous. One of the ways in which an established business owner can answer the financing part of the question of how to open a medicine shop is with the help of a business loan.

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

There is a growing demand for quality pharmacies, and the demand is not going to diminish anytime soon. As long as diseases exist, people are going to visit medical stores to fulfil their need for medical supplies.

To capitalise on this business opportunity, one has to go forward with the plan to establish a pharmacy. However, there is a significant capital expenditure for anyone who is considering opening a medical shop in India.

The prospective business owner has to identify a real estate space for the shop. Then there is the question of either renting the space or purchasing it outright. Add to that, expenses for renovation, purchasing the inventory, licences, registrations and hiring trained pharmacists and sales professionals.

The financial needs of opening up the medical store can be met with the help of a business loan from SMFG India Credit. Use the business loan calculator on the website to get an estimate of the amount of financing that you may be eligible for.

Must Read: Types of Business Loans Options

What are the Reasons to Take a Loan for a Medical Store?

Funding the opening of a medical store is an expensive undertaking. Whilst you can borrow from family and friends, go for an overdraft, it still may not be enough to cover all the costs involved.

Let’s take a look at some of the reasons why a business loan is the most convenient way to finance this venture.

1. Shop Renovation:

Opening a medical store may involve large-scale renovations of the shop space. Furthermore, the renovation cannot simply consist of sprucing up the paint job, installing a few shelves, cabinets, and drawers, repairing a glow signage, and opening the pharmacy.

All renovations of the space must follow specific guidelines and comply with any regulatory requirements as outlined by the authorised governing bodies.

2. Purchase of Equipment & Drugs:

Other than medicines and healthcare essentials, a number of pharmacies also choose to store equipment like wheelchairs, oxygen cylinders, medical devices and more to expand the range of their product portfolio. These are usually high-ticket items and every business owner of a medical shop should have a predefined budget allocated to acquire this inventory.

Moreover, you may also need to spend on general equipment such as refrigerators to store drugs that need to be maintained at a specific cool temperature along with other items like air-conditioners, lights, fans, etc.

Add to that the cost of installing computer systems with tailored software investments for inventory management, logistics, and billing.

3. Working Capital:

When you open a medical store, like all other business owners, working capital is an important requirement. An unsecured business loan could be one of the best ways to manage such requirements. 

How To Apply for a Business Loan?

If you have decided to go with a business loan from SMFG India Credit to open your medical store, the first step involves a basic business loan eligibility. The basic criteria include:

  • Applicant should be minimum 25 years of age when applying for the business loan
  • Applicant must not exceed 65 years of age at the time of making the business loan application
  • Applicants must be self-employed or should operate a proprietorship establishment for a period of minimum three years in the current business. Total experience in business experience should be at least five years
  • The turnover of the business must be a minimum of Rs. 10 lakhs yearly
  • The business must be profitable for the last two financial years 
  • The business must have filed a Minimal Annual Income (ITR) of Rs. 2 Lakhs per year
  • Applicants must have a minimum CIBIL score of 750 or higher

Documents for Business Loan:

  • All KYC documents along with recent photograph
  • Income proof along with bank statements
  • GST or ITR
  • Proof of Business existence (such as trade license, Certificate of Incorporation, etc.)

For a business loan from SMFG India Credit, please note that depending on your profile and our policy, additional documents may be requested.

Filling Out the Application Form:

Navigate to the SMFG India Credit website where you will find a dedicated application form for business loans. You need to fill in the form with the relevant information that includes your personal, professional and financial details. 

Choose the loan amount, your preferred business loan interest rate and the repayment tenure. 

A reference number will be generated that can be used to communicate with Fullerton for the loan process ahead. The business loan team will verify the business loan documents and the application and approve the loan within 2 to 3 business days. 

If you meet the eligibility criteria, the loan agreement papers are signed and the loan gets sanctioned.

Final Thoughts

A business loan application at SMFG India Credit is a seamless process. 

If you still have questions, feel free to get in touch with SMFG India Credit’s customer service team on the toll-free number 1800 103 6001. Alternatively, you can email them at   for more information.

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us

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