Healthcare Loans through Gold Loan Branches

Contents

Market Size IIFL Healthcare Finance Introduction Product Features Eligibility Conditions Process Flow Document Checklist

INDIA Healthcare Market

GROUND REALITIES Healthcare is emerging as the largest service sector in India, attracting large number of Domestic and International players. Only 1.2 bed per 1000 of Population, far less in comparison to China & Brazil at 5.4 & 4.8 respectively BACKDROP TO HEALTHCARE REFROM Lack of health insurance keeps private & quality healthcare out of reach for most, coupled with lack of quality healthcare personnel. Currently the total Healthcare Insurance market penetration is only about 2% of the Population

Healthcare Loan through Gold Loan Branches Whom we Finance.

Individual Medical Practitioners Eye Centres & Hospitals Diagnostics Centres and Pathology Laboratories Small and Medium size Speciality Clients likes Skin Clinics, Dental Clinics etc Medium size Private Hospitals, Nursing Homes * Loans upto Rs 30lacs : Sourcing from Small Individual Doctors, Nursing Home & hospitals with < 30-35 beds , eye and dental clinic , diagnostic centers * Other deals to be directly referred to Healthcare Sales Team which includes from large hospitals, medical and dental colleges
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Healthcare Finance- What we Finance

NEW MEDICAL EQUIPMENT FINANCE

Radiology equipments X-Ray, Ultrasound, Color Doppler, Mammography Pathology equipments Blood Analyzers, Cell Counters, Cell analyzer Cardiology Equipments Cardiac Doppler's, Stress Test, TMT, Cathlab, Defibrillators, ECG, Balloon Pump, Surgical Equipments C-Arm, Laparoscope's, Dialysis, Endoscopes Ophthalmology Equipments Phaco, Yag, Microscopes, Slit lamps Others Dental Chairs, Monitors, Ventilators, Infusion Pumps, Syringe Pumps etc

Product Features - Equipment loan

Metric Purpose of Loan Loan Amount LTV Tenure Foreclosure Charges Parameter Purchase of medical equipment INR 5 Lacs INR 30 Lacs Max. 80% of the cost of equipment 12 Months - 48 Months NIL if closed after 12 months 3% if loan closed within the first 12 months

ROI

Processing Fees

Deal given by Healthcare Sales Team ROI will be advised by Health Care Sales Team Deal Sourced directly by Gold Loan team will be processed at 15%ROI plus PF 1% of Sanctioned Loan Amount

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Eligibility Conditions
Metric Experience Entity Type Parameter Min. experience of 3 years Individual Partnership Private Limited Qualified doctors Diagnostic Centre Nursing Home Hospital* Clinic* *These can be either owned or promoted by doctors as well Mandatory for all cases Spouse mandatory for married applicants * Unmarried then of a friend or a family member with personal networth of more than twice the loan amount. * Income of spouses can be added for eligibility criteria provided the spouse is a Doctor or Govt Employee Should have own house or clinic *The same can be on applicants name or parents/spouse name Min. CIBIL score of 700 Minimum Income Rs. 2 Lac p.a. (Gross Total Income as declared in the ITR).

Borrower

Guarantor

Residence/Office Ownership CIBIL Score

Process Lead referred Flow

Ste pA Ste pB
by manufacturer to IIFL & HC Sales to Contact Dr. & Advise GL Team CIBIL/Scoring GL team Calls Doctor & get Appointment fixed Application form filled in & picked up from doctors premises and scanned to credit Hub Documents scanned to FCU and to Credit hub to process.FCU report also sent to LoanCredit Hub Agreement, EMI PDCs, Processing Fee Cheque, Insurance cheque to be picked from customers premises

Ste pC

Financial Analysis Analyze FCU reports File check & processing by Operations

Ste pD Ste pE Ste pF

Storage

Personal discussion and Documents picked up after appointment Telephonic discussion by credit and HC Sales & terms agreed with customer. Gold Team to be part of Call, if possible Delivery Order / Disbursement is done post receipt of Invoice by Ops. Healthcare Sales team to follow-up for same PDD Tracking ( Post Disbursement Documents Invoice & Insurance )

File completed & sent to Credit Hub

Post audit by Audit

EMI Presentation Gold Loan branch functions

Follow up with customer in case of any delay in repayment, supported by Healthcare Sales

Healthcare Sales Team to follow-up of completion of PDD & Installation Report with support of Gold Team

HC Sales / Credit hub functions

Central OPS functions

Audit functions

Document Checklist
On first visit 1. Application Form Applicant for CIBIL score of applicant 2nd Visit : Personal discussion 1. Latest Photograph Applicant + Guarantor 2nd visit 2. KYC (Residence, Identity Proofs & Signature proof) Applicant + Guarantor 3. PAN card copy Applicant + Guarantor 4. Residence/Clinic ownership proof in the form of Tax paid receipts. 5. Degree copy 6. Latest 2 years ITRs 7. Last 6 months bank statements 8. Partnership Deed, MOA/AOA 9. Proforma Invoice 10. Applicants declaration of loans 11. Net worth statement of guarantor 12. CA certified list of equipment with gross value/ balance sheet with schedule of fixed assets 13. Processing Fee cheque 1% Note: (relationship proof (passport, PAN etc.) required if any document is in name of parents/spouse) 3rd visit 1. ECS or PDCs ( ECS is preferred ) 2. Loan Agreement Kit
*Please note all documents need to be self-attested by the applicant/guarantor & OSR (Original seen & returned) by IIFL employee

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Healthcare Loan through Gold Loan Branches

Equipment & All Safe Insurance mandatory. Pricing for insurance premium will be provided separately All disbursement will be made directly to Manufacturer only and not to any dealer Quick turn around within 24 hours of application days final approval and disbursal soft approval and within 7

Competitors PSU banks take about a month and a lot more Documents

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Healthcare Loan through Gold Loan Branches

Major Suppliers
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HCF Marketing and Sales strategy - GL Team

Database Generation - Individual Doctors, Hospitals, Diagnostic Centres, Nursing Homes, Clinics, Medical Colleges and Dental Colleges. Yellow pages Mediclaim providing Insurance companies PNDT Registration Office in respective location (Pre-Natal Diagnostic Techniques) IMA (Indian Medical Association) IRIA (Indian Radiological and Imaging Association) offices References from doctors. Medical equipment manufacturers

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Marketing and Sales strategy cont..

Reaching the Database

Tele calling Cold calls Product mailers Follow-up calls Calling Medical equipment manufacturers Joint customer calls

Creating awareness and product visibility

Regular training for manufacturers & dealers - product features

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Marketing and Sales strategy cont..

Creating awareness and product visibility...

Participating in local IRIA/IMA Chapters periodical meetings and conferences. Displaying banners and distributing HCF Product brochures during Continued Medical Education programmes. Launching low interest financing schemes by Manufacturers Distribution of IIFL HCF Brochures through equipment manufacturer Publishing IIFL HCF advertisements in local IMA / IRIA Chapters in house publications and journals.

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Marketing and Sales strategy cont..

Ensuring first right of refusal / preferred financier status Personalized attention - door step service. Lower TAT Transparency & Fair Practice - loan documentation requirements, interest rates, processing fees, deal approval status etc. Never discussing one equipment manufacturers lead with another equipment manufacturer. Adhering strongly to the set file process flows and standards.

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Facing Competition
Advantages of IIFL over Nationalized Banks
Indias fastest growing Healthcare Finance company. Well experienced healthcare team. Strong goodwill among major medical equipment manufacturers. Support of Medical Equipment manufacturers. Vast branch network of IIFL. Reach the customer approach - IIFL Nationalized Banks. TAT - Disbursement within 7 days Door Step Service V/s Wait for the customer approach -

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Facing Competition
Early revenue generation - By lower Processing time TAT - Banks 3-6 weeks V/s IIFLs 1 week time for loan disbursement Example: Given below is Gross Revenue an ultrasound centre can earn in a month.

700.00 An Ultrasound centre would have loss of earnings of about Rs 2.62 lacs per month when competitor Bank takes about one month time as against IIFL time of one week /
Ultra Sound charges vary from Rs 700 to Rs 1500

No. of Ultra Sound Scans per day 25 working days in a month Avg. Charges per scan -Rs.

15 375

2,62,500.0 0

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Guidelines for handling doctors

Punctuality for the appointments Need for patience - May be required to multiple times visit for meeting / collecting docs. Need to be courteous Preparing in advance for the type of questions that may crop up Never speak anything negative or criticize any other doctor / centre / equipment manufacturer. Never commit anything which you cant deliver or is unsure of. Make brief points while in conversation but have a constant eye to eye contact. Never mis - sell : interest rates, proc fees, document franking charges, loan approval process and status, loan documentation etc

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IIFLs Healthcare competency

Rs. 200 Cr loan book within 13 months of commencing the operation. Core team with rich experience in healthcare industry. Zero delinquency on the healthcare book. Operating Lease - Off the Balance Sheet Well known healthcare practises across India on IIFLs Healthcare Book. Aggressive player, giving strong competition to other established healthcare financiers Successfully signed LOS with market leaders in medical equipment manufacturing like Philips Medicals, Wipro GE, Abbott, Zeiss, Bausch & Lomb, L & T, Sonosite and many more are in the anvil. Only financier to participate in the All India level IRIA conference, Hyderabad in Feb 2012 Regularly publishes healthcare financing advertisement in leading Healthcare 19 Magazine - Medical Buyer.

Thank You

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