Healthcare Finance – Best Healthcare Financing Options Available in India

Healthcare financing is available for the purchase of medical equipment, the balance transfer of existing term loans, the expansion of healthcare facilities, and other purposes.

A doctor uses a home loan, mortgage loan, or personal loan to expand his business or purchase very expensive medical equipment, or is there a loan tailored to meet his professional needs? Several financial institutions now offer healthcare financing.

If you are a doctor or a healthcare professional looking to expand your business, this article will help you understand the requirements for obtaining such a loan. why do you Need Of a Financial Advisor? they will support you complete the processes smoothly.

Eligibility

Banks and NBFCs provide professional loans to doctors, private hospitals, limited companies, medical practitioners, eye and diagnostics centers, nursing homes, dental colleges and pathology laboratories, and medical colleges. It is offered in exchange for equipment security and personal guarantee. Specialty clients, such as skin and dental clinics, can also get healthcare finance.

Healthcare finance is available.

• Medical equipment purchase
• to pay off a prior lien on free medical equipment
• Existing term loan balance transfers and expansion of existing healthcare facilities, among other things
• The applicant may also obtain a loan to purchase ancillary equipment such as air conditioners and lifts, in addition to medical equipment.

Partnership firms, trusts, societies, and private hospitals that provide healthcare services can obtain healthcare finance. It is also available to self-employed doctors with at least three years of experience.

Time required processing the loan

The applicant must complete the loan application form and provide the required documentation. Professional qualification certificates, with at least three years of work experience in the healthcare field, funding requirement and the project report, previous three years returns on income tax filed, six months prior bank statements, records of past loans, estimates of the equipment likely to be purchased, and desired know your customer documents are among the documents required.

Guarantor 

Anyone seeking a professional loan will be required to provide a guarantor as insurance in the event of the borrower’s default. If the borrower is an individual promoter, a private limited company, or a partnership firm, the last three years’ audited balance sheets and profit and loss account statements must be attached.

A copy of the memorandum of association is required for a private limited company, while a copy of the partnership deed is required for a partnership firm.

Loan authorization

The time it takes to sanction a loan varies depending on the nature of the loan, the amount of funding, and the location. The loan is usually approved within four to five working days of submitting the required documents.

Loan amount and repayment period

The maximum loan amount is typically set at 80% of the cost of medical equipment. Depending on the customer’s financial strength, some financial institutions may offer up to 90% of the total loan amount.

Loans are also available for the purchase of used equipment. An independent valuer appraises the equipment in this case. According to the valuer’s report, the borrower may receive up to 65 percent of the total loan amount.

Small players can get a loan for Rs. 2 lakh, while large corporations can get a loan for Rs. 15 crore. The minimum repayment period is about 12 months, and the maximum is about 84 months. The typical loan term is 61 months.

Insurance and interest rates

These loans have an annual interest rate of 14 percent on average. Remember to negotiate the interest rate to get a better deal. To protect the medical equipment from damage or loss, you must obtain fire/burglar insurance.

Different types of loans

Choose from the following loan types that are best suited to your company:

• Asset financing / medical equipment financing
• Invest in standard medical equipment such as colour Dopplers, CT scanners, sonography machines, MRI machines, and X-ray machines.
• Loan for infrastructure
• Purchase or establish new facilities, such as clinics, diagnostic centers, and hospitals.
• Transfer of existing term loans or working capital balances
• Merchant establishment – overdraft facility (ME-OD)

Finance for working capital

Take advantage of cash credits, overdrafts, and demand loans to fund day-to-day operational needs such as the purchase of consumables, maintenance expenses, and salary payments.

Additional fees:

The processing fee for such loans is typically 1% of the total amount borrowed. This fee is non-refundable and must be paid only once. If you want to pay off your loan early, some financial institutions will charge you a prepayment penalty.