Everything You Need to Know About Medical Equipment Financing
Running a medical establishment is an expensive affair be it a hospital, Nursing home, Diagnostic center, Pathology lab centre, Specialty clinics (like skin and dental clinics), Dialysis centre, Endoscopy centre, IVF centre, the educational institute - medical/paramedical college, dental college, Large medical equipment dealer. Diagnostics plays a major role and doctors today like to leverage technology for preventive healthcare, precise disease stratification, therapy selection, and surgery. Imaging equipment alone can cost a fortune. Setting up even a small hospital with 20 beds will require some serious financial commitment. Then there are requirements for running working capital and bringing up the infrastructure.
What is a loan for medical equipment or a medical equipment loan?
Setting up a medical facility is capital intensive and requires a huge sum of money in setting up the equipment. An MRI machine can cost anything between 1CR to 3 CR and this is the primary reason that Banking establishments and NBFCs offer equipment loans to medical professionals who are looking forward to setting up their business.
Criteria for opting for medical equipment loan?
The establishments have laid down certain prerequisites for the loans they are as follows
- The individual opting for a loan should have a valid degree in medical science ie MBBS or BDS
- The applicant should be between the age group of 25-65 years
- The individual should have been in medical practice for 3 years
- The loan can be obtained in the name of the firm or company provided it is a Medical Establishment. The promoters of the company should have a clean financial record and not default in the past
- The individual should have a spotless financial track record with no case of default in the past
Documents for securing the medical equipment loan
- The individual should be having the KYC document as per the list prescribed by the government of India
- Operational bank account statement for the last 12 months is a mandatory document
- You might be required to submit the ITR for the last 2 years
- Details of any outstanding loan or the loan that has been paid in the last 12 months
- MOU or deed to be submitted in case of partnership firm or private limited firms
How can you avail yourself of a medical equipment loan?
Once you meet the required eligibility criteria, you can avail yourself of a loan through the following three easy steps
- Register your interest by completing the application form
- Submit all applicable documents mentioned above
- Check eligibility and get approval
What is the rate of interest for a medical equipment loan?
Most establishments offer medical equipment loans at a rate slightly higher than the base lending rate. Interest rates start from as low as 8.5% depending on the loan amount, your financial records, and business potential. Certain banks also offer interest rates calculated on the reducing monthly balance. The loans can be applied for online as well as offline.
Getting a medical equipment loan has benefited a number of medical practitioners in setting up facilities that are performing above expectations. It has been one of the factors that are contributing to the growth in the medical industry. Doctors can keep pace with the changing technology and its advantages in diagnostics. Documentation is one of the challenges that one has to face. Opting for MB freedom, a product from Medikabazaar removes all the impediments and can expedite the process of loan procurement. Going through Medikabazaar the customers will have multiple choices of banks and NBFCs to choose from. One can quickly compare the best alternative to suit their needs. Click on the link to the world of medical equipment finance and open the establishment of your dreams.