{"id":41839,"date":"2022-04-05T10:45:08","date_gmt":"2022-04-05T05:15:08","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=41839"},"modified":"2024-12-11T17:28:31","modified_gmt":"2024-12-11T11:58:31","slug":"ayush-loan-license-meaning-documents-and-benefits","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/ayush-loan-license-meaning-documents-and-benefits\/","title":{"rendered":"AYUSH Loan License: Meaning, Documents, and Benefits"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Ayush loan license serves as legal\nauthorization for those lacking a manufacturing unit but aims to engage with\nproduction via a third party having an AYUSH manufacturing license. In general,\nloan licensing allows businesses (lacking manufacturing units) to get access to\nthird-party production units on a loan licensing basis.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/ayush-loan-license-meaning-documents-and-benefits\/#Who_can_apply_for_AYUSH_Loan_License_in_India\" >Who\ncan apply for AYUSH Loan License in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/ayush-loan-license-meaning-documents-and-benefits\/#AYUSH_Loan_License_Mandatory_Documentations\" >AYUSH Loan License: Mandatory Documentations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/ayush-loan-license-meaning-documents-and-benefits\/#Procedure_for_securing_AYUSH_Loan_License_in_India\" >Procedure\nfor securing AYUSH Loan License in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/ayush-loan-license-meaning-documents-and-benefits\/#How_does_the_Ayush_Loan_license_work_in_general\" >How\ndoes the Ayush Loan license work in general?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/ayush-loan-license-meaning-documents-and-benefits\/#Underlying_legal_conditions_around_loan_license\" >Underlying legal conditions around loan license<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/ayush-loan-license-meaning-documents-and-benefits\/#What_is_GMP_certificate\" >What is GMP\ncertificate*?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/ayush-loan-license-meaning-documents-and-benefits\/#Typical_benefits_and_pitfalls_of_loan_licensing\" >Typical benefits and pitfalls of loan licensing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/ayush-loan-license-meaning-documents-and-benefits\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_can_apply_for_AYUSH_Loan_License_in_India\"><\/span>Who\ncan apply for AYUSH Loan License in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>AYUSH Loan License is accessible to\nbusinesses via loan licensing on the following conditions; <\/p>\n\n\n\n<ul>\n<li>The\nproposed Auyush Manufacturer has adequate staff;<\/li>\n\n\n\n<li>The\nManufacturer has ample equipment; <\/li>\n\n\n\n<li>The\nManufacturer has the potential to cater to production demand with available\nresources. <\/li>\n<\/ul>\n\n\n\n<p>In general, the Manufacturer must have\nample facilities to produce manufacture Ayush products on the client&#8217;s behalf. <\/p>\n\n\n\n<div class=\"mt-3 mb-3 embed-responsive embed-responsive-16by9\"><iframe class=\"embed-responsive-item\" src=\"https:\/\/www.youtube.com\/embed\/sCKIlV7CTrU\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen=\"\"><\/iframe><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"AYUSH_Loan_License_Mandatory_Documentations\"><\/span>AYUSH Loan License: Mandatory Documentations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Letter\nrequesting the operation facility to produce the medicine <\/li>\n\n\n\n<li>Consent\nletter for manufacturing facility <\/li>\n\n\n\n<li>Demand\ndraft Rs.600\/- toward Ayush loan license along with GMP fees in favour of Directorate\nof Ayush of the respective state. <\/li>\n\n\n\n<li>Premises\nrelated documents such as a rental agreement \/sale deed or tax paid receipt<\/li>\n\n\n\n<li>Master\nFormula in duplicate, clinical trial reports, book references, for proprietary\nmedicine, testing methods and report relating to Specifications Safety study\n(for schedule E1 drugs) <\/li>\n\n\n\n<li>Owner\u2019s\nphotographs (2)<\/li>\n\n\n\n<li>In case of <a href=\"https:\/\/corpbiz.io\/partnership-firm-registration\" title=\"Partnership Firm Registration\"><strong>Partnership firm<\/strong><\/a>&#8211; copies of Partnership deed (attested) along with 2 passport size photographs of all the partners. <\/li>\n\n\n\n<li>In\ncase of company \u2013MOA, AOA, 2 passport size photographs of all serving\ndirectors. <\/li>\n\n\n\n<li>In\ncase of Trust: copy of Trust Deed along with 2 passport size Photos of the\ntrustees<\/li>\n\n\n\n<li>In\ncase of Proprietor-2 passport size photos, identity proof, notarized copy of\nsole proprietorship<\/li>\n\n\n\n<li>key\nplan(blue print) and Site plan prepared in accordance with the schedule T of\nDrugs &amp; Cosmetics Act 1940<\/li>\n\n\n\n<li>Consent\nletter from AYUSH certified laboratory for product\u2019s testing &nbsp;<\/li>\n\n\n\n<li>Affidavit\ndeclaring Non conviction of Director\/ proprietor\/ partner under the Drugs &amp;\nMagic Remedies (Objectionable Advertisement) 1954 and Drugs &amp; cosmetics Act\n1940 on Rs 100\/- stamp paper <\/li>\n\n\n\n<li>in\ncase of P&amp;P, Stability study reports in accordance with Ayurvedic\nPharmacopeia of India and Rule 161B of Drugs &amp; Cosmetics Rules.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_securing_AYUSH_Loan_License_in_India\"><\/span>Procedure\nfor securing AYUSH Loan License in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The process of securing the Ayush Loan\nLicense is mentioned below: <\/p>\n\n\n\n<ul>\n<li>First,\na file has to be created enclosing the mandatory documentation.<\/li>\n\n\n\n<li>Then,\nan application form for a loan license shall be filed. <\/li>\n\n\n\n<li>The\napplication shall then be furnished to the AYUSH ministry&#8217;s respective state\noffice along with applicable fees.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_does_the_Ayush_Loan_license_work_in_general\"><\/span>How\ndoes the Ayush Loan license work in general? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Upon grant of loan license, the actual\nManufacturer becomes liable to open access to the working area, office,\ndocument department, and other facilities to the loan licensee. A <\/p>\n\n\n\n<p>Ayush department of the respective state\nis responsible for granting new license numbers to an eligible applicant. <\/p>\n\n\n\n<p>The loan licensee pays out charges\/rent\/profit\/commission as per mutual agreement to the <a href=\"https:\/\/corpbiz.io\/ayush-license\" title=\"Ayush License\"><strong>Ayush license<\/strong><\/a> holder. After receiving license no, the loan license holder can initiate production undertakings in the agreed area. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Underlying_legal_conditions_around_loan_license\"><\/span>Underlying legal conditions around loan license<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A loan license can be granted to the\napplicant concerned, provided the third-party Manufacturer has; <\/p>\n\n\n\n<ul>\n<li>Production\nfacility located in an industrial area<\/li>\n\n\n\n<li>The\nminimum size of the production facility should be 1200sqft.<\/li>\n\n\n\n<li>Ample\nspace for handling increased production volume<\/li>\n\n\n\n<li><strong><em>GMP\ncertification* <\/em><\/strong><\/li>\n\n\n\n<li>The\ntesting facility in place<\/li>\n\n\n\n<li>2\nAyurvedic experts and two pharmacies<\/li>\n\n\n\n<li>Agreed\nto provide access to all the manufacturing and packaging machinery<\/li>\n\n\n\n<li>Fulfilled\nunderlying inspection norms <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_GMP_certificate\"><\/span>What is GMP\ncertificate*? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>GMP<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Good_manufacturing_practice\"><strong>[1]<\/strong><\/a><\/sup> is an abbreviation for Good Manufacturing Practice. It is a globally acknowledged term used for managing the control, testing, and quality of pharma-based products. It underpins extensive guidelines around quality control, which the pharma industry can implement with ease. <a href=\"https:\/\/corpbiz.io\/gmp-certification\" title=\"GMP Certification\"><strong>GMP certification<\/strong><\/a> ensures that the end products are of supreme quality with no compromise whatsoever.&nbsp;<\/p>\n\n\n\n<p> is an abbreviation for Good Manufacturing Practice. It is a globally acknowledged term used for managing the control, testing, and quality of pharma-based products. It underpins extensive guidelines around quality control, which the pharma industry can implement with ease. GMP certification ensures that the end products are of supreme quality with no compromise whatsoever.&nbsp;<\/p>\n\n\n\n<p>Joint Commissioner, authorized by Food\n&amp; Drug Administration\u2019s commissioner, has the power to sign and grant the\ncertificate under the scheme known as WHO-GMP certification. GMP certification\nstandardizes and simplifies pressing issues like record keeping, paperwork\nhandling, sanitation, grievance handling, process validation, etc.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Typical_benefits_and_pitfalls_of_loan_licensing\"><\/span>Typical benefits and pitfalls of loan licensing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A loan license offers plenty of benefits\nto the license holders. But it has some downsides as well. The section below\ndiscusses the same.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Advantages <\/h3>\n\n\n\n<ul>\n<li>A\nloan license enables the licensee to ensure minimal production cost for their\nproducts.<\/li>\n\n\n\n<li>It\nallows the licensee to eliminate overhead expenses that otherwise are more\nprominent in in-house production units. <\/li>\n\n\n\n<li>Labour\nmanagement is not an issue with this license. <\/li>\n\n\n\n<li>Licensees\ncan skip maintenance costs and repair expenses, which is a significant issue in\nthe in-house production.<\/li>\n\n\n\n<li>The\nabsence of in-house production means nil overhead costs and increased profit\nmargins. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Disadvantages <\/h3>\n\n\n\n<ul>\n<li>A trade secret may get exposed, but it can be fixed via a non-disclosure agreement. <\/li>\n\n\n\n<li>Complete control over the production line remains inaccessible to the licensee as it entirely depends on the contract terms.<\/li>\n\n\n\n<li>There is no way the licensee can upgrade the production line, either by augmenting the present system or adding new equipment without permission. <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Ayush loan license empowers businesses to access the production capabilities of another firm. With this license at disposal, companies with nil production infrastructures can enter into an arrangement with another certified firm to meet their production goals. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/ayush-manufacturing-license-in-india\/\">Ayush Manufacturing License for Herbal Products in India<\/a><\/mark><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ayush loan license serves as legal authorization for those lacking a manufacturing unit but aims to engage with production via a third party having an AYUSH manufacturing license. In general, loan licensing allows businesses (lacking manufacturing units) to get access to third-party production units on a loan licensing basis. Who can apply for AYUSH [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":41841,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[701],"tags":[2230],"acf":{"service_id":"420"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":10547,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41839"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=41839"}],"version-history":[{"count":10,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41839\/revisions"}],"predecessor-version":[{"id":67767,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41839\/revisions\/67767"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/41841"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=41839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=41839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=41839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}