Ayush Loan License
AYUSH Loan License
If you want to start your own Ayurvedic, Unani, Siddha, or Homeopathic product brand but do not have your own manufacturing unit, an AYUSH Loan License is the easiest way to begin. Many first-time founders get confused when they hear the term “loan license” because it sounds technical. But in reality, it is one of the easiest ways to enter the AYUSH industry.
Just think of it like this:
☑️ You own the brand and the product ideas.
☑️ A licensed AYUSH manufacturer makes the products for you.
☑️ The Loan License gives you legal permission to use their facility for manufacturing.
This helps you start your business faster because you don’t need to spend money on land, machines, staff, or setting up your own factory. You save both time and cost, and you can focus on building your brand while a licensed manufacturer makes the products for you.
In this guide, everything is explained in a very easy and clear way so that anyone who is new to the AYUSH field can understand what an AYUSH Loan License is and how to apply for it.
What is an AYUSH Loan License?
An AYUSH Loan License is a permission issued by the State AYUSH Licensing Authority that allows a brand (you) to manufacture products using another company’s AYUSH-approved manufacturing facility.
Instead of building your own factory, you “borrow” or “take on loan” the manufacturing space of a licensed AYUSH manufacturer. This manufacturer already has equipment, qualified staff, and approvals. You simply get your products manufactured under your brand name.
In short:
👉 You own the brand
👉 You decide the product formulas
👉 A third-party AYUSH-approved factory manufactures your products
👉 You get an AYUSH Loan License as legal approval
It is the most common choice for startups and early-stage AYUSH brands because it removes heavy costs and long approval timelines.
Who Should Apply for an AYUSH Loan License?
This type of license is perfect if:
- You want to launch a wellness, herbal, or Ayurveda brand.
- You don’t want to spend ₹50-₹80 lakh on building a manufacturing unit.
- You want to start small and test your products before investing more.
- You want to enter the market quickly.
- You prefer outsourcing manufacturing rather than doing it yourself.
- You want to make sure that your products are legally compliant.
Most new brands in India begin with a loan license because it is simple, affordable, and safe.
How to Apply for an AYUSH Loan License?
The AYUSH department has made the loan license application process much easier over the years. While some states accept applications through the e-Aushadhi portal while others still use their own state portals or offline submission methods. So it is important for you to know the step-by-step guide you can follow to avoid any last minute delay.
Start by preparing all the documents you will need. This usually includes ID proof, business proof, details of your brand, and documents from the AYUSH-approved manufacturer you are tying up with.
You will also need:
👉 Your product list
👉 Draft labels
👉 Signed agreement with the manufacturer
👉 Manufacturer’s license and GMP certificate
Different states may ask for slightly different documents, so it’s important to check your state’s rules before submitting the application. Missing or unclear documents can slow down the process or even cause rejection.
Most states now accept applications through the e-Aushadhi portal (e-aushadhi.gov.in).
However, some states like Maharashtra, Tamil Nadu, Gujarat, and Karnataka may still use:
👉 Their own online state system
👉 Offline/manual submission at the AYUSH Licensing Authority office
Before applying, check:
👉 Whether your state accepts online or offline submission
👉 The correct portal or office address
👉 State-specific instructions
Once you know the correct platform, download or access the relevant form. For a loan license, the required form is:
- Form 24-E – Application for Loan License
Fill the form carefully with correct business details, manufacturer details, and product information.
👉 Attach all supporting documents
👉 Upload or compile them as per your state’s format
👉 Cross-check everything before submission
Once your form and documents are ready:
👉 Pay the prescribed application fee (varies by state)
👉 Submit the form online or deposit the file physically
👉 Keep the payment receipt and acknowledgment safe
The file is then taken up for review by the Licensing Authority.
After document verification, the AYUSH Inspector will visit the manufacturer’s unit mentioned in your loan license application. During inspection, they check:
👉 Cleanliness and hygiene
👉 Manufacturing area and equipment
👉 Raw material and finished goods storage
👉 Availability of qualified staff
👉 GMP compliance
👉 Documentation and SOPs
Since the facility already has a manufacturing license, the inspection usually goes smoothly.
If everything is satisfactory, the authority approves your application and issues your loan license, usually in:
- Form 25-E – AYUSH Loan License Certificate
This certificate allows you to manufacture AYUSH products legally through the approved third-party manufacturer.
The decision time varies by state, but after digitalization, the process is generally faster than before.
Once you receive the loan license:
👉 Your products must be manufactured only at the approved manufacturing unit
👉 Labels should include your loan license number
👉 You must follow AYUSH rules for packaging, claims, and record-keeping
👉 Any change in manufacturer or product list must be reported to the authority
Good compliance helps you avoid penalties and ensures smooth renewals in the future.
Documents Required for AYUSH Loan License
The exact list may vary slightly from state to state, but generally, you need the following documents.:
- Letter requesting the operation facility to produce the medicine
- Consent letter for manufacturing facility
- Demand draft Rs.600/- toward Ayush loan license along with GMP fees in favour of Directorate of Ayush of the respective state.
- Premises related documents such as a rental agreement / sale deed or tax paid receipt
- In case of Partnership firm – copies of Partnership deed (attested) along with 2 passport size photographs of all the partners.
- In case of company – MOA, AOA, 2 passport size photographs of all serving directors.
- In case of Trust – copy of Trust Deed along with 2 passport size photos of the trustees
- In case of Proprietor – 2 passport size photos, identity proof, notarized copy of sole proprietorship key plan (blue print) and Site plan prepared in accordance with the schedule T of Drugs & Cosmetics Act 1940
- Consent letter from AYUSH certified laboratory for product’s testing
- Affidavit declaring Non conviction of Director/ proprietor/ partner under the Drugs & Magic Remedies (Objectionable Advertisement) 1954 and Drugs & cosmetics Act 1940 on Rs 100/- stamp paper
- In case of P&P, Stability study reports in accordance with Ayurvedic Pharmacopoeia of India and Rule 161B of Drugs & Cosmetics Rules.
Cost Involved in Getting an AYUSH Loan License
Understanding the different costs involved in an AYUSH Loan License helps you plan your budget better. The overall cost usually includes government fees, professional support charges, and a few optional expenses depending on your business needs.
1. Government Fees
Every state has its own fixed fee for issuing an AYUSH Loan License. These charges are paid directly to the AYUSH department of your state. The fees generally cover the application, registration and other basic approvals required to use a licensed AYUSH manufacturing facility. The amount is not very high and is the official cost set by the government. In some states, there may also be a small charge for GMP-related processes.
2. Professional or Consultant Fees
Many entrepreneurs take help from consultants or legal experts because the documentation and filing process can be confusing for first-time applicants. Professional fees differ from agency to agency, but they usually include support with preparing documents, filling forms correctly, and guiding you through the licensing steps. This saves time, reduces mistakes, and helps ensure that the application is accepted without issues.
3. Other Possible Expenses
Apart from the basic government and service fees, there may be a few additional costs depending on the type of products you plan to launch and the manufacturer you work with. These can include product testing, agreements, or compliance-related work.
Some common additional expenses are:
☑️ Product testing charges (if your manufacturer requires it)
☑️ Legal agreements for loan licensing or contract manufacturing
☑️ Label or packaging compliance checks
☑️ Any quality-related certificates your product category may need
These costs may vary depending on the manufacturer and the type of products you want to launch. If you are working with a GMP-certified facility, you may not need to spend extra on compliance setup, as the unit is already approved for AYUSH production.
4. Validity & Ongoing Requirements (Not a Cost, But Important)
AYUSH manufacturing licenses now come with lifetime validity, but you must keep the license active by completing simple yearly requirements, such as submitting a self-compliance declaration. Manufacturers also renew their GMP certificates every five years, which indirectly supports the quality of your products.
These rules have made the AYUSH sector easier for new businesses, as there is no longer a need for frequent license renewals.
Timeline for AYUSH Loan License
The timeline depends on documentation, inspection, and product approval. Usually it takes:
- 45 to 90 days on average
- Faster if documents are complete
- Longer in states with high pendency
A good consultant can help speed up the process.
Common Mistakes Beginners Make (And How to Avoid Them)
Many first-time applicants make small mistakes that delay the license. Here are the most common ones:
Common Mistakes
- Choosing the wrong manufacturer
- Submitting incomplete documents
- Not preparing product labels properly
- Applying for too many products at once
- Not checking state-specific guidelines
- Using banned or restricted ingredients
Drafting the manufacturing agreement incorrectly
Frequently Asked Question
Not exactly. Third-party manufacturing is only manufacturing work. A loan license gives you legal authority from the AYUSH department to manufacture products through another unit
No. You only need to tie up with an AYUSH-approved manufacturer.
You can start with even 1 product. Most beginners start with 5-10 products.
Yes, but only as “Manufactured at…”. Your brand name remains the main identity.
Yes. Many brands begin with a loan license and later set up their own plant once they grow.
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