​​What exactly is an AYUSH Loan License in India?

AYUSH Loan License

The AYUSH Loan License is granted to people who do not have a manufacturing unit but wish to use the production facility of an AYUSH manufacturing licence holder. Simply put, loan licencing permits an individual who does not own a production unit to borrow another AYUSH manufacturer's manufacturing facility.

Following receipt of the AYUSH Loan License

When the licence is issued, the manufacturer grants the Ayush Loan Licensee access to the working area, office, relevant departments, and other production facilities. A qualifying candidate is granted a new licence by each state's AYUSH Department.

In addition, the AYUSH Loan License holder is required by the Licensor to pay the following:

 1. Additional fees

 2. Facility Rental

 3. Profit after taxes

 4. The Dealer's Fee

After obtaining the necessary licence certification, the Licensee can begin manufacturing activities in accordance with the terms agreed upon.

The Benefits of an AYUSH Loan License

Obtaining an AYUSH Loan License has several advantages. It also has drawbacks, which have been covered on this website.

 1. The AYUSH License assures that the licensee's goods have low production costs.

 2. Licensees can avoid the high overhead costs associated with in-house manufacturing units.

 3. The AYUSH licensee does not need to be concerned with labour management.

 4. Licensees can escape maintenance and repair costs, which are a major concern in in-house manufacturing. The absence of in-house production results in lower overhead expenses and higher profit margins.

 5. However, with the AYUSH License, your trade secret may be revealed. You may, however, address it by entering into a non-disclosure agreement with the manufacturer.

Here, the licensee cannot gain complete control over the production line as it entirely depends on the manufacturer-licensee contract terms. Also, the licensee cannot upgrade the production line of the manufacturer, either by augmenting the present system or adding new equipment. He has to make do with what is available at the Manufacturing Facility.

​​Manufacturer's Qualifications

An AYUSH licence can only be issued to the applicant if the manufacturer possesses the following:

 1. The manufacturing plant must be located in an industrial zone.

 2. The manufacturing facility must be at least 1200 square feet in size.

 3. The Manufacturing Plant must have sufficient space to accommodate the Licensee's production volume.

 4. The manufacturer must have GMP certification.

 5. The testing facility must be connected to the manufacturing plant.

 6. The facility must always have two Ayurvedic specialists and two pharmacists on hand.

 7. Access to all manufacturing units and packaging machinery must be included in the manufacturer-licensee agreement.

 8. The facility must meet the relevant inspection standards.

​​Documents necessary in India for an AYUSH Loan License

A. Prior to filing the AYUSH Loan licence registration application, the AYUSH Loan licensee must prepare the following documents:

 1. Manufacturer's manufacturing licence

 2. Request Letter to the Manufacturer to Operate the Medicine Manufacturing Facility

 3. Manufacturing Facility Consent Letter

 4. Demand draught in respect of the State Directorate of the AYUSH License for AYUSH loan licence processing and GMP fees

B. Documents pertaining to the facility, such as:

 1. Lease Agreement

 2. Or a Sales Contract

 3. Receipt for Tax Paid

C. Specifics on alternative medicines, such as the following:

 1. Recreate the Master Formula

 2. Reports on Clinical Trials

 3. Medical Book References

 4. Procedures for Testing

 5. SSS (Specification Safety Study) report for schedule E1 medications

E. Recent Photographs of the Owner of the Manufacturing Unit

F. Partnership Deed confirmed with two passport-size pictures of its member partners for Partnership Firm

G. If the applicant is a corporation, the MOA and AOA of the applicant firm, as well as two passport-size pictures of all directors, are required.

H. If the application is a Trust, a copy of the Trust Agreement as well as two passport-size pictures of the Trustees are required.

I. If the applicant is a proprietorship, two passport-size pictures, identification, and a notarized copy of the proprietorship are required.

J. Blueprint and site plan created in accordance with Schedule T of the Drugs and Cosmetics Act of 1940.

K. A consent letter from an AYUSH-certified laboratory

The applicant must provide an affidavit declaring the non-conviction of the respective firm's directors, owners, or member partners under the Drugs and Magic Remedies (Objectionable Advertisement) Act of 1954 and the Drugs and Cosmetics Act of 1940. The affidavit must be written on 100-rupee stamp paper.

L. Under the Ayurvedic Pharmacopoeia of India and Drugs & Cosmetics Rules, the applicant must submit SSR (Stability Study Reports) for P&P.

M. Additional documentation that the AYUSH ministry may request during follow-ups.

​​In India, the Procedure for Obtaining an AYUSH Loan License

The following is the procedure for acquiring an AYUSH Loan License:

 1. First, a file comprising all of the needed papers must be prepared.

 2. Following that, an application for an AYUSH Loan License will be submitted.

 3. The application is subsequently sent to the AYUSH ministry's state office, along with the application processing costs.

​​Our Help with AYUSH Loan Licensing in India

We offer complete support in obtaining an AYUSH licence in India:

 1. We assist in the filing of the application.

 2. We create the necessary documentation.

 3. We keep in touch with the AYUSH ministry.

If you don't want to deal with the Department, you can acquire the AYUSH loan licence without any problem. Contact Certpedia.

Please contact us as soon as possible so that we can get started.