Doctor’s Choice Scheme

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Status: Active

Classification: Public Sector Scheme

Release Date(s):
31st December 2023
17th June 2021

Offering: Loan/Credit

Entity Type: Public Sector Bank

Reading Time: 6 Mins

Ticket Size: Upto ₹ 5 Crore

Entity Name: Canara Bank

#Views: 51

Disclaimer….before you read ahead!

The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updation, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.

Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this email.


About the scheme…
Doctor’s Choice 
was launched by Canara Bank as an MSME loan scheme recognizing various credit needs of Registered Medical Practitioners, with special interest concessions for women entrepreneurs, to assist them in establishing and expanding their reach, thereby enabling them to serve the needy in a better way. In the current times of pandemic, doctors and the healthcare sector have indeed emerged as the most essential and indispensable sector in the social fabric worldwide!


How is it being implemented?

Under Doctor’s Choice Scheme, direct financial assistance is given to

  • Qualified Registered Medical Practitioners in any branch of medical sciences like Allopathy, Dental, Ayurvedic, Unani, and Homeopathy, with special interest concessions for women entrepreneurs;

to meet their capital expenditures on working capital expenses right from setting up a clinic, nursing home, hospital, etc. to associate business activities like setting up x-ray labs, pathology labs, physiotherapy centres, in-house medical stores etc. to allied business requirements like the purchase of equipment, vehicles, ambulance, computer accessories, setting up of quarters for resident doctors etc.


What’s on offer?
I. Product: 

  • Term loans of up to ₹5 Crores
  • Working capital facility equal to 20% of maximum sanction limit up to a ceiling of ₹50 Lakhs

II. Purpose:

  • Fixed asset acquisition
  • Working capital requirements
  • For more details around this, please refer here

III. Borrower Type

  • Individuals, Sole Proprietorship, Partnership, Companies, Trust

IV. Security or Collateral or Guarantee or Insurance

  • Security: First charge or hypothecation over assets created out of the Bank’s finance
  • Collateral:
    • Nil for loans up to ₹100 Lakhs that are eligible to be covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
    • For the rest, suitable security in the form of immovable property or approved securities not less than 100% of the loan amount shall be insisted
      • Agriculture land, immovable property(ies) standing in the name of Hindu Undivided Family who is/are proprietor/partner(s) in the borrowing unit, properties which are tenanted, properties in the name of the directors & their close relatives in the case the borrower is a Public Limited Company will not be taken as security
  • For information around the requirement of guarantee or insurance, please contact Canara Bank via the means mentioned below

V. Interest Rate

  • Repo Linked Lending rate (RLLR) + Credit Risk Premium (CRP) – Interest concession of 0.5% for women entrepreneurs – 0.25% for accounts covered under CGTSME
    • Interest concessions are subject to the ultimate interest rate not falling below the prevalent RLLR
  • Canara Bank’s RLLR w.e.f December 7, 2022 is 8.8%
  • Hence for women entrepreneurs, the interest rate is likely to range between the following based on the loan product, their risk assessment and ticket size of the loan
    • Term loan – 9.60% – 10.35%
    • Working capital facility – 9.10% – 10.10%

VI. Processing fee

  • For loans up to ₹5 Lakhs: nil
  • For loans above ₹5 Lakhs given as:
    • Term loans – 75% of normal charges. Likely to be around 0.5 – 1.0%, subject to a minimum of Rs. 250-500
    • Working capital facility – as per extant guidelines. Likely to be around 0.35 – 0.50%, subject to a minimum of Rs. 250-550
  • For more details around the same, please contact Canara Bank via the means mentioned below

VII. Margin money requirement

  • For loans up to ₹25,000: nil
  • For loans above ₹25,000:
    • Term loan for construction of business premises including resident doctors’ quarters -25%
    • Term Loan for equipment -20%
    • Working capital-20%
  • For more details around the same, please contact Canara Bank via the means mentioned below

VIII. Tenure, Repayments & Pre-Closures

  • For term loan: repayment tenure up to a maximum of 7 years
  • For working capital facility: tenability for 2 years subject to annual renewal
  • For information around pre-closures, prepayment, and their related charges etc., please contact Canara Bank via the means mentioned below

IX. Turnaround Time

  • 15 – 45 days depending on loan ticket size and whether the business is classified as a Micro-Enterprise, Small-Enterprise or Medium-Enterprise.

Note that the definition of Micro-Enterprise or Small-Enterprise or Medium-Enterprise per MSMED Act has been changed since July 1, 2020. Please click here for concise details


Interested? Read ahead to check your eligibility….

I. Are you a qualified Registered Medical Practitioners in any branch of medical sciences like Allopathy, Dental, Ayurvedic, Unani, and Homeopathy; and have practical experience of carrying on the business?

If your answers to the previous questions are an emphatic YES, you are all set to avail the loan under Doctor’s Choice Scheme!


So…how big is this scheme and what has been done so far?

I. Details for Canara Bank’s Doctors Choice Scheme is not available in the public domain


So, now, how should you go about it?

IMPORTANT NOTE: Please note that some of the links are unsecured and your browser may prompt you for a permission to open such unsecured links to access them further. Please do so to view the links.


I. For submitting application:


Canara Bank SME focused branch here

  • Please find the updated link to apply online here




here (Click on Apply Online Tab)

II. For information on loan application and indicative list of required documentation in English & Hindi, please click here


here (Click on Forms and Applications Tab)

You may also refer to the indicative list of documentation required here

III. For any queries, please contact Canara Bank’s MSME Banking Unit –


Go on then…and do spread the word!



  1. About the Scheme
  2. About Interest Rates
  3. About Repo Linked Lending Rate (RLLR)
  4. About Processing Fee
  5. About Turnaround Time
  6. Latest News Article on Doctor’s Choice Scheme: Credit facilities to Doctors and other incumbents of Healthcare ecosystem by CANARA BANK

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