Introduction – If you are a physician who is thinking specifically about establishing your own practice or opening a healthcare facility, you must have to gather certain machinery, which is within which medical supply loans are available. In modern times, the entire medical sector is exceedingly costly. It is costly to pursue a degree to be a medical practitioner, to seek the advice of a doctor, and to purchase the medical supplies necessary for treating patients.
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There are several alternatives when applying for a loan for purchasing medical instruments in India. Certain well-known options for loans include:
1. Medical Equipment Loans: Several financial institutions in India provide loans for the purchase of medical equipment. These loans are intended especially for healthcare providers such as physicians, healthcare facilities, as well as medical centers. A variety of factors including the bank, the loan value, the rate of interest, as well as term of repayment may differ.
2. NBFC Loans: In India, NBFCs also provide healthcare equipment financing. Where NBFC stands for Non-Banking Financial Companies. They offer financing options tailored specifically to the requirements of healthcare providers. Based on the NBFC, the lending amount, rate of interest, and the due date for reimbursement may differ.
3. Government funding schemes: The Indian government has a number of programmes in place to assist the medical services sector. Several of these programmes offer low-interest financing for the purchase of healthcare supplies.
4. Product manufacturers of healthcare equipment: A number of healthcare equipment manufacturers provide financing alternatives to their consumers. These choices for financing can potentially be subject to further conditions and rules.
Shortly before submitting an application for a medical appliance loan, it is best to do your homework, investigate rates of interest and terms, and assess the loan’s cost-effectiveness.
Medical Equipment Loan Benefits
With the healthcare sector rapidly expanding due to increased demand, the company requires more financial assistance. The following are some of the key advantages of this funding product:
- The financial assistance is only meant to be used to purchase medical supplies and their associated accessories.
- Banks present customised alternatives for medical professionals’ monetary requirements.
- Conditions for repayment typically range from twelve to 84 months in length.
- Due to the scale of large monetary investments, financial institutions present monetary support at low-interest rates, and perhaps most notably, specifically designed options are developed to meet the needs of the company being funded.
- Over a specific loan value, a guarantee must be provided.
- The healthcare facility loan includes equipment financing, project financing, financing for operations, and credit requirements, among other things.
Medical Equipment Loan Eligibility Criteria
To be permitted for this financing, one must be in the healthcare industry. Other eligibility requirements include:
1. specialty or super-specialty hospital
2. Diagnostic facility
3. Pathology Laboratory
4. Clinics for specialties
5. IVF clinics
6. Manufacturer of pharmaceuticals
7. Dialysis clinics
8. Healthcare proprietorships
9. Healthcare Trusts
10. Private companies of any other type
11. A minimum of three to five years of experience in the medical profession.
12. Requiring a minimum 1-year reimbursement record of repayment
13. Banking operations with any chosen bank in the previous year
14. Should have authority approvals or registrations to continue operating.
Rates of interest and fees for medical equipment loans
The interest rate presented by banks is determined by the total loan volume as well as the total term of the loan. Due to the fact that the industry is heavily invested, comparable rates of interest are presented. The business process is persistent, and in a standard instance, banks detect a little risk in providing this loan to specified medical establishments. The bank typically offers a set rate of interest that ranges between 11% and 13%.
Here we are presenting a rate chart of fees for medical equipment loans
| Total Loan Amount | Starting from 5 lakhs Up to 20 Crores |
| Repayment Period | 3-7 Years |
| Processing Charge | 1% of the Total Loan amount |
| Prepayment Charge | 5% of the remaining amount |
| Late Payment Fee | 1-2% monthly on unpaid EMI |
| Insurance | On Actuals |
How to process getting a medical equipment loan
The commonly suggested method for obtaining medical equipment loans is to go to the nearest bank branch and speak with an official from the bank about your loan needs.
Because the highest medical equipment financial assistance is tailored to the business’s specific requirements, discussing details about the start-up or growth objectives is recommended. A private meeting will make sure that the most favourable loan terms are obtained.
A primary inquiry can either be carried out online or by contacting the financial institution’s consumer support staff. Their assistance is accessible 24 hours a day, seven days a week, and the representatives will offer all loan products with information over the phone.
The following documents must be submitted to obtain this loan:
1. KYC records of the promoters along with prospective customers,
2. completed forms for the application
3. PAN
4. Shop along with founding certification
5. 2 to 3 years’ audited accounting records
6. Statements of the bank regarding the previous six months
7. Any continuing loan information
8. Proforma bills for investments in equipment or supplies
9. Copies of MoA
10. Reports of projects to represent
Top Banking Institutions That Provide Medical Equipment Loans
In the Indian subcontinent, multiple banking institutions provide medical equipment financing.
1. HDFC Bank
2. SBI
3. YES BANK
4. DHFL
5. IDFC Bank
6. Bajaj Finserv
To obtain a medical equipment loan, you need to maintain a functional account with your bank.
Typically, 80% of the standard invoice is funded. It is also dependent on the financial status of the person applying.
The funding can be repaid using post-dated checks, ECS, or standing guidelines.
The healthcare equipment loan encompasses the purchase of assets, the construction of infrastructure, the financing of operational expenses, as well as the remaining transfer of currently outstanding term loans.
The letters of credit are subject to the banking institution’s terms, but some lenders do include these alongside the loan.