Providing healthcare services is one of the top priorities of every government across the globe. But there’s so much a government can do. Especially, in a country like India with such a large population, several private partners have to pitch in this sector, which is only expanding. With more big hospitals, small clinics, diagnostic centres, etc. coming up daily, the healthcare sector has also become a source of generating huge revenues and employment opportunities.
However, be it individuals opening their own clinic or any group of partners opening a hospital, a major chunk of the investment goes in buying medical devices like oxygen cylinders, surgical tools, MRI, ECG, dental X-ray machines, wheelchairs, etc. The cost of these can range from a few lakhs to a few crores. For medical practitioners who don’t have such huge cash reserves and need instant funding, financial institutions offer a loan specifically for buying equipment at reasonable interest rates and repayment tenures.
How to get a loan for medical equipment?
Decide on the loan amount:
Improving your services will require state-of-the-art machinery that can be quite costly. So, the first step of the loan is to decide how much money you need. Research the market value of various pieces of equipment of different brands and their installation fee and calculate your funding requirement before approaching the lenders.
Type of equipment loan:
Medical equipment financing has subparts depending on the applicant’s profile and needs. The different types of loans include loans for individuals and loans for non-individuals like a partnership, trust, society, hospitals, nursing homes, diagnostic centres, etc. A different type of loan is meant specifically for dentists. The amount, interest rates, tenure, and terms vary in all of them so, decide which type suits your needs the best. Also, check how your credit score and availability or non-availability of collateral affect the terms of your application.
Look for financiers:
Look for a lender with a past record of providing financing solutions for both new and refurbished medical equipment. A lender with an understanding of your business goals and requirements and ability to access financial situations can be a long-term partner. Someone like Hero FinCorp caters to all types of medical facilities and finances a wide array of equipment and all this while lending capital at reasonable rates and terms in a quick and hassle-free manner.
Prepare for documentation:
Once you clear the eligibility criteria, the lender will ask for several documents like Audited financial statements and projections for last three years; profiles and KYC of all directors, partners, and proprietor of the company; the business establishment’s constitution documents and registration certificates and the applicant’s Indian Medical Association certificate. Keep these documents and a few passport size photographs ready when seeking a medical equipment loan.
Benefits of Medical Equipment Loans
Financial institutions offer these loans to individuals and institutions and for the purchase of both new and refurbished machines.
Flexible Repayment Options:
With the tenure ranging from 12 to 84 months, the borrower can choose the desired period to repay the amount according to his/her convenience.
Since most advanced machinery and equipment are quite expensive, these loans offer higher limits that allows the purchase of desired equipment.
A good lender will be happy to customize solutions as per the applicant’s requirement, as well as offer some exciting discounts on processing and prepayment fees. You can also get existing Medical Equipment Loan refinanced to a lower priced option.
If you are planning to expand or enhance your medical facility with modern technology and equipment, medical equipment loans can enable you to provide the best healthcare services to your patients, without adding to your budgetary concerns. Using these loans, you will be able to get your new equipment, pay comfortable EMIs and keep your medical practice alive and kicking.