How to Secure a Business Loan to Start a Medical Store in India

Looking forward to setting up a medical store? As the Indian healthcare sector continues its robust expansion in 2026, understanding the regulatory landscape is vital. Here is how to start a medical store and the requirements you need to fulfill. Worried about funds? Get the required funding with a business loan for a medical store and repay it in easy EMIs.

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

The Indian healthcare industry is projected to reach significant milestones in 2026, driven by increased health awareness and digital integration. Thanks to medical research and advancements, people's life expectancy has improved significantly. Moreover, the medical business remains a "recession-proof" sector, demonstrating immense resilience during global economic shifts. However, opening a medical store requires several registrations and legal procedures under the Drugs and Cosmetics Act, 1940. It also requires significant capital that you can source through a loan for a medical shop from regulated NBFCs like Hero FinCorp, easily available to self-employed individuals and SMEs subject to credit assessment.

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

Types of Medical Store Models in India

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 recognized in the Indian market:

• Hospital Medical Stores: A pharmacy located within a clinical establishment. Your primary customers would be patients receiving treatment within that specific facility.
• Standalone Medical Stores: Independent pharmacies in residential or commercial areas. It is the most common type of medical store for first-time entrepreneurs.
• Chain Pharmacy or Franchise Outlets: Partnerships with established brands. These require higher initial capital but offer ready-made supply chains and brand trust.
• Township Medical Stores: Serving specific residential townships or gated communities, catering to local requirements.
• Government Premises Stores: Opened under schemes like the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) , providing affordable generic medicines.

Also Read: What Is a Business Loan? Meaning, Features & How to Apply

What Are the Regulatory Rules for Medical Stores in India?

While setting up a medical store in India, it is essential to follow the guidelines laid down by the Central Drugs Standard Control Organisation (CDSCO). Here are the latest rules for opening a pharmacy:

1. Drug License: You must obtain a drug license from your state drug control authority. This is mandatory under the Drugs and Cosmetics Rules.
2. Premises Registration: The store should be registered with your local municipal authority and comply with all fire safety regulations.
3. Qualified Pharmacist: Having a registered pharmacist (holding a B.Pharm or D.Pharm) in the shop is mandatory during all hours of operation.
4. Stock Variety: The store should stock various types of medicines, including Essential Medicines as per the National List of Essential Medicines (NLEM).

If you are falling short of funds to cover these requirements, you can get a loan for a medical store from a regulated NBFC and fulfill the expenses without hassle.

Requirements for Opening a Medical Store

Area Specification

According to the Drug Control Department, the minimum space required for a retail medical store is at least 10 sq. m. However, if you are opening a medical shop for combined retail and wholesale business, it must be at least 15 sq. m.

Storage Facility

Certain drugs, like vaccines and insulin, require cold chain maintenance. Therefore, your storage facility must have a calibrated refrigerator, and the store should maintain appropriate temperatures as per Pharmacopoeia standards.

Also, Read: How To Write A Proposal For A Business Loan?

Technical Staff

A retail medical store should have a registered pharmacist. For a wholesale medical business, you must have a registered pharmacist with specific experience as mandated by the State Pharmacy Council. Citing the Pharmacy Act, 1948, ensures that only qualified professionals handle drug distribution.

Types of License for Medical Shop

• Retail Drug License (RDL): Required for general chemist shops. A business loan for medical shop can help cover the licensing fees and initial security deposits.
• Wholesale Drug License (WDL): Necessary for bulk distribution. WDL holders must adhere to strict GSDP (Good Storage and Distribution Practices).

Documents Required for Registration

• Application form (Form 19).
• Proof of Pharmacy Qualification (Degree/Diploma and Registration Certificate).
• Blueprint/Key Plan of the premises.
• Proof of ownership or Rental Agreement (NOC from the landlord).
• Affidavit of non-conviction under the Drugs and Cosmetics Act.

How Can a Business Loan to Start a Medical Store Help?

A loan for opening medical store offers several advantages:

• Access to ample funds for inventory and interior setup.
• Competitive interest rates: In 2026, rates are typically linked to the NBFC's cost of funds, as per RBI's Fair Practices Code.
• Unsecured options: No need to pledge residential or commercial property for certain loan amounts.
• 100% Digital Procedure: Fast-tracked processing for SME applicants with a good CIBIL score (typically 725+ recommended by TransUnion CIBIL).

Steps to Apply for a Business Loan for Opening Medical Store

1. Visit the Hero FinCorp website and navigate to the Business Loan section.
2. Click ‘Apply Now’ and enter your GST and PAN details.
3. Upload necessary documents (KYC, Bank Statements).
4. Wait for digital verification and credit appraisal.
5. Review the Sanction Letter and Loan Agreement before acceptance.

Conclusion

Opening a medical store is a robust business option in India’s growing healthcare sector. Since initial setup costs for inventory and licensing can be high, a business loan for a medical store provides the necessary liquidity. Ensure you partner with a regulated NBFC to enjoy transparent terms and flexible repayment.

Frequently Asked Questions

How Much Investment Is Needed to Start a Medical Store?

In 2026, a small retail pharmacy in a Tier-2 city may require ₹5 Lakhs to ₹10 Lakhs, while urban centers may require more for rent and stock.

What Is the Profit Margin of a Medical Store?

Margins typically range from 10% to 12% on branded medicines and significantly higher on generic drugs, depending on volume and overheads.

Can I get a business loan for a medical shop without collateral?

Yes, many regulated NBFCs offer unsecured business loans based on your financial history and business plan.

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