If you are a doctor who is planning on starting his own practice or someone who is about to open a hospital then you are going to need to get some equipment together and that is where medical equipment loans come in. The whole healthcare industry is quite expensive these days. Studying to be a doctor is expensive, availing the services of a doctor is expensive and so is the equipment that is used to treat people. For example the x-ray viewer can cost approximately Rs. 13,000 for the basic models, one 47 litre oxygen cylinder can cost about Rs. 16,000 and examinations tables could be as much as Rs. 12,000 and above. A single MRI machine could set you back by about Rs. 1 crore.
Now imagine ordering all this in vast quantities for a fully functioning hospital. Just the thought of the cost alone is enough to give you the shivers. These costs are the reason why many banks and financial establishments offer loans for medical equipment. These loans are extended to dentists too although the limits on the loans for dentists may be different from those offered to other doctors and hospitals.
Medical equipment loans are just one type of a loan offered under the umbrella of healthcare loans but they too can be categorised into 3 main types.Loans for doctors
This is a loan that can be taken by doctors who intend to open their own medical facilities. The amount that you will be eligible to take would depend on the bank you approach. For example if you approach Dena Bank then you can borrow up to Rs. 2 crore with a maximum margin of 25%.Loans for non-individuals
Saying non-individuals refers to partnership firms, private companies, trusts, proprietorships, etc. These loans are different from those meant for individuals because they tend to have higher limits on the amount that you can borrow.Loans for dentists
These loans are designed specifically for dentists and the amount you can borrow is lesser than the loan for doctors.
The eligibility criteria for companies and individuals seeking a medical equipment loans is:
To be able to take this loan, you will need to provide certain documents to the bank. These documents may be different for each bank but some of the common ones are:
There may be a possibility of the bank requiring you to submit
Most banks offer a fixed rate of interest on the loans that are slightly above their base lending rates. This means that the interest rates can be as low as 12% per annum. However some banks even offer interest rates that are charged based on a monthly reducing balance which means that the interest you have to pay reduces as you pay the loan back.
Loans for medical equipment is just one aspect of the loans provided for the healthcare industry. Some of the other loans provided are:
This is a loan that can be taken help pay for the construction of a hospital or the premises of clinic or any other facility engaged in health services.
This is a loan that can be taken to ensure that you have funds to conduct your daily business and can be taken as a cash advance or as an overdraft.
This too is a form of Working Capital Loan which can be taken against the credit card swipes every month.
To be eligible for the HDFC medical equipment loan you will need to:
The amount that you can borrow will depend on the document you submit. This means that you may not receive 100% funding but you will still may get 80% of the funds as indicated by the projections for the project.
A. That is a matter of bank policy and some banks may require you to open an account with them to take this loan.Q. How much of the required amount will I get?
A. Most of the times you may not get cover for the entire amount but you will still get a percentage of what you need for the entire project.Q. Will I get the money in a lump sum?
A. While some banks may provide the funds in a lump sums other banks offer it in instalments to pay for expenses as they come.Q. How do I pay the loan back?
A. The loans can be paid back via post-dated cheques, electronic clearance or standing instructions.Q. Do these loans come with letters of credit?
A. Letters of credit are subject to the bank's policies however there are some banks that do offer them with the loan.Q. What if my credit history is not good? Will I still get the loan?
A. No. Most of the banks insist that you and the co-applicants for the loan have no defaults in the credit history.Q. What if I want to take the loan for longer than 7 years; can I do that?
A. Yes. Some banks offer tenures of 10 years too. You can approach them for the loan.Q. Is it necessary for me to have a guarantor?
A. No. The need for a guarantor is determined based on the amount you want to borrow and the bank's policy.Example:
Let us suppose that you are interest in a medical equipment loan and approach HDFC for said loan. Here is what you can expect out of the loan:
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