The Indian healthcare industry is primarily divided into two categories, private and public. The public healthcare system mainly comprises large scale care units in cities and necessary infrastructure in rural and underdeveloped parts of the country. The private sector provides the bulk of healthcare facilities in tier 1, 2 and 3 cities as well as metros and urban areas.
The higher number of private medical facilities is because of a greater number of doctors opting to start their own practice. A substantial number of medical practitioners decide to work as a self-employed individual and open their private clinics after they clear their course. They often take a loan for doctors or a medical equipment loan to finance the clinic and purchase necessary tools and equipment.
What are medical equipment loans?
Medical equipment loans are a form of unsecured financial product offered by various financial institutions to practising doctors. It falls under the category of doctor loan that an applicant avails to purchase necessary and advanced equipment.
Where to look for to avail a loan for doctors?
Both government-backed lenders and NBFCs offer medical equipment loans to eligible candidates. They even offer additional benefits and features to attract potential borrowers.
However, there are certain things an applicant should consider before he opts for a particular institution to take a medical equipment loan. Let’s take a look.
- Time is taken to disburse the loan
A borrower should choose a financial institution that disburses a medical equipment loan within the shortest period. It will help him secure the necessary finances at the earliest.
- Eligibility and documentation
Easy-to-meet eligibility criteria for medical equipment loan and minimum documentation are other critical factors an applicant should look out for when availing medical equipment loans. A new medical practitioner may not get a loan if a financial institution has stringent eligibility criteria in place.
Minimum documentation also helps healthcare professionals qualify for the credit without any hassle. They can avail the benefits of a loan with only a handful of documents.
- Amount of funding
High-quality specialised equipment like ECG machines, X-Ray, MRI, etc. are essential parts of modern treatment. These tools along with various must-have POC equipment help doctors diagnose and treat their patients in a better manner.
However, most such modern equipment is bought from other countries, which result in much higher prices as several taxes accumulate on their import. A medical practitioner will not be able to purchase the necessary equipment if a lender does not provide with enough capital. That’s why a borrower should consider the medical equipment loan amount before choosing a lender.
Various financial institutions offer loans of up to Rs. 30 Lakh to aid practitioners bridge the monetary gap. Furthermore, these advances often don’t require a borrower to pledge collateral against the funds which can prove beneficial as one don’t have to worry about losing any asset in case of a late or missed repayment.
- Loan tenor and interest rate
Flexible loan tenor and best in class interest rates can help save a significant amount of money while repaying the loan. It is essential that the borrower takes a medical equipment loan from an institution that offers such benefits.
Various financial institutions offer flexible tenor between 12 and 96 months along with attractive interest rates to ease up repayment. It can help avoid common financial mistakes like poor debt management, incorrect financial projection, etc.
These are some of the most crucial aspects one should look for when choosing a lender to avail a medical equipment loan. Lenders often provide various other types of services like online loan application, online loan account management, etc. to help a borrower know about the status of their credit effortlessly.