Pharmaceutical Distribution
Business Loans
₹2 Crore Loan Against Property for a Pharmaceutical Distributor
How WizBiz secured ₹2 crore Loan Against Property for a Ludhiana pharma distributor, reducing interest from 13% to 9.75% and saving ₹45,000/month.
Loan Against Property for Pharma Business | Case Study | WizBiz
Business Loan, LAP, Loan Against Property, Pharma, Ludhiana, Balance Transfer
WizBiz Team
Challenge
MediDistributors Punjab, a well-established pharmaceutical distribution business with 15 years of operations, needed ₹2 crore for expanding their warehouse capacity and procuring a cold chain logistics system. The owner, Mr. Suresh Agarwal, owned a commercial property worth ₹3.5 crore but didn't know how to leverage it for a Loan Against Property (LAP). His existing loan with a cooperative bank had a rigid structure, and the bank was unwilling to increase the limit despite good repayment history. The business was losing opportunities due to inadequate cold storage capacity.
Solution
Our loan advisory team evaluated the property, assessed its market value, and analysed the business cash flows. We prepared a detailed loan proposal and approached multiple lenders including HDFC, ICICI, and Bajaj Finserv. We negotiated on the loan terms, including: (1) Loan-to-value ratio of 60% (₹2.1 crore against ₹3.5 crore property); (2) Interest rate reduction from 13% (existing loan) to 9.75%; (3) 10-year tenure with ballooning option; (4) Balance transfer of existing loan. We also helped consolidate 3 high-interest business loans into this single LAP, reducing the client's overall monthly outgo.
RESULTS
Loan of ₹2 crore was sanctioned within 21 days. The balance transfer saved ₹45,000 per month in EMI. The client built a 5,000 sq. ft. temperature-controlled warehouse with cold chain storage. The new capacity enabled them to take on 3 additional pharmaceutical principals, increasing annual revenue by ₹3.2 crore. The business is now the largest pharmaceutical distributor in the Ludhiana region.
Key Metrics
Loan Amount: ₹2 Crore
Property Value: ₹3.5 Crore
Interest Rate: 9.75% (from 13%)
EMI Saved: ₹45,000/Month
Revenue Increase: ₹3.2 Cr/Year
Warehouse: 5,000 sq. ft. cold chain
Testimonial
WizBiz didn't just get us a loan — they completely restructured our business finances. The EMI savings alone have made a huge difference to our cash flow. The new cold storage has opened up business opportunities we could only dream of before. Their loan advisory team is absolutely world-class.
