A Complete Guide on Medical Equipment Financing

The advancement in medical technology and medicine has tremendously benefited society and helped the medical fraternity solve many mysteries. Best-in-class equipment is no longer a luxury but a necessity in order to provide excellent healthcare services. However, buying such advanced medical equipment involves significant costs and can prove to be difficult if you only use existing funds.

The most affordable solution is to opt for medical equipment financing, which will enable you to fund the purchase without the need to block your working capital or dip into your personal finances. Moreover, the loans offered in this category offer an attractive interest rate and a quick approval and disbursal process.

Here is everything you need to know about taking a Personal Loan for Medical Equipment.

What is a Medical Equipment Loan?

A Personal Loan for medical equipment is specifically designed to help medical professionals and healthcare institutions finance the purchase of medical equipment. This credit facility is designed for doctors who have personal clinics or any other medical service.

Personal Loans for medical equipment can be used for purchasing a wide range of devices, including MRI machines, X-ray machines, ECG machines, hospital beds, dental instruments, and more. The amount depends on various factors like the borrower's credit history, financial standing, and the expected profitability generated by using the equipment.

Types of Loans for Medical Equipment

The medical equipment is broadly classified into three categories:

1. Personal Loans for Doctors

Under this category, the loan is given to doctors with private practises or doctors who want to set up their own medical care facility. The amount of the loan depends on the experience, financial status and credit history of the borrower and the expected profitability of the medical unit.

2. Loans for Non-Individuals

Under this category, the loan is offered to public, private, partnership, trust and society who are involved in the business of providing healthcare services. In this case, the ticket size of the loan is much higher compared to a loan for an individual doctor.

3. Loan for Dentist

This loan category is specially designed to suit the unique financing needs of dentists. Here, the lender allows the applicant to borrow a lower amount as compared to the minimum borrowing limit for other doctors.

Why should you take a Loan for Medical Equipment?

The latest and most advanced medical equipment is costly and can often be prohibitive. Dipping into personal finances to pay for such equipment is simply not feasible. In addition, delaying upgrading medical facilities can negatively affect your business.

Because of these reasons, financial institutions offer doctors and medical establishments the facility of a Personal Loan for medical equipment. Other benefits of this credit facility are as follows:

Highly Customised Loan

A Personal Loan for medical equipment is a highly customisable loan product. The loans availed under this option are customised according to the specific needs of doctors and as per the type of medical equipment in question.

Does not block your Working Capital

Adequate working capital ensures business continuity and helps to meet business financial obligations promptly. A Personal Loan for medical equipment ensures you do not block your working capital and continue to execute your day-to-day processes effectively even when you need funds to purchase new devices.

Ensures Liquidity during Emergencies

It is not wise to engage all your capital in a single purchase, as it reduces your capability to deal effectively with emergency situations. If your funds are tied up in the purchase of a single device or facility, you may not be able to pay for emergency repairs or for damage to other assets caused due to natural calamities.

All such expenses require massive spending and a lack of financial resources may delay your operations.

Factors to Consider Before Medical Equipment Loan in India

Securing a loan for medical equipment can help healthcare professionals invest in essential tools. Here's how to get a loan effectively.

1. 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.

2. 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 non-individuals like partnerships, trusts, societies, 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.

3. Look for Financiers:

Look for a lender with a record of providing financing solutions for new and refurbished medical equipment. A lender with an understanding of your business goals and requirements and the 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.

4. Prepare for Documentation:

Once you clear the eligibility criteria, the lender will ask for several documents like Audited financial statements and projections for the last three years; profiles and KYC of all directors, partners, and proprietors of the company; the business establishment’s constitution documents and registration certificate;s and the applicant’s Indian Medical Association certificate. Get these documents and a few passport-size photographs ready when seeking a Personal Loan for medical equipment.

Also Read: Should You Rent or Purchase Medical Equipment

What are the Advantages of Medical Equipment Financing?

Opting for a Personal Loan for Medical Equipment offers several advantages for healthcare providers:

1. Low-Interest Rates: Hero FinCorp offers you an affordable interest rate that starts from as low as 1.58% per month.
2. No Impact on Working Capital: A Personal Loan for Medical Equipment allows you to preserve your working capital, ensuring that your day-to-day operations are unaffected.
3. Customised Loan Terms: These loans are designed to fulfil your specific needs; thus, you can purchase the equipment you need in your clinic.
4. Improved Liquidity: By spreading the cost of equipment over time, you maintain liquidity, which is essential for handling emergencies or other unexpected expenses.
5. Faster Application & Approval: With Hero FinCorp, you do not have to undergo an extensive procedure. You can apply for a loan online and get approval in no time.
6. Access to Latest Technology: Financing allows you to upgrade to the latest medical technology, ensuring you stay competitive in the healthcare industry.

How Is Your Medical Equipment Financing Amount Decided?

The loan amount for medical equipment financing is determined based on several key factors, including:

• Borrower's Credit History: A strong credit score increases the likelihood of a higher loan amount.
• Business Performance: A profitable healthcare business with consistent cash flow will be eligible for more substantial loans.
• Type of Equipment: The nature of the equipment you intend to purchase also plays a role in determining the loan amount.
• Loan Purpose: Whether you're upgrading existing equipment or purchasing new machinery, the loan amount may vary accordingly.

What Are the Eligibility Criteria for Medical Equipment Loans?

To apply for a Personal Loan for Medical Equipment, you must meet the following basic eligibility requirements:

• For Individuals: 5 years of experience in providing medical services and a minimum of 3 years’ experience in the current business.
• For Healthcare Institutions: Hospitals, diagnostic centers, and other healthcare providers must demonstrate a profitable business model and provide financial documents.
• Age Criteria: Applicants should be between 21-58 years of age.
• Credit History: A good credit score is essential for loan approval.

Documentation Required for Loan for Medical Equipment

The following documents are generally required to process a Personal Loan for medical equipment:

• KYC Documents: PAN card, Aadhaar card, and address proof.
• Financial Statements: Audited financial records for the past 3 years.
• Business Documents: A Memorandum of Association (MOA) or Partnership Deed is necessary for companies.
• Medical Qualifications: Copies of your medical degrees and certifications.
• Other Documents: Bank statements for the last 6 months, loan amount details, and the equipment invoice.

How to Apply for a Personal Loan for Medical Equipment?

Applying for a Personal Loan for medical equipment is a straightforward process. Here’s a simple breakdown of the steps involved:

• Visit the Hero FinCorp website or install the app
• Go to the Personal Loan page and click ‘Apply Now’
• Enter your mobile number and verify with the OTP received
• Choose the loan amount you need
• Verify your KYC details to check income eligibility
• Click ‘Submit’ to complete your application

Conclusion

Opting for a Personal Loan for Medical equipment offers a cost-effective solution for healthcare providers to obtain the necessary equipment without disrupting operations. By opting for a Personal Loan for medical equipment, you can maintain liquidity, upgrade to the latest technology, and improve patient care quality.

If you're looking to apply for a Personal Loan for medical equipment, follow the simple steps mentioned above and reach out to the right financial institution for assistance. For more details or to apply for a Personal Loan for medical equipment, visit the official website or download the app now.

Frequently Asked Questions

1. What is the maximum loan amount available for medical equipment financing?

The loan amount can range from Rs 50,000 to Rs 5 Lakh, depending on the nature of the equipment and the borrower's credit profile.

2. How long does it take to receive the loan amount for medical equipment?

Once approved, funds can be disbursed within 24-48 hours.

3. What types of medical equipment can be financed?

The loan can cover various types of medical equipment, including MRI machines, CT scanners, hospital beds, and dental instruments.

4. Can a Personal Loan for medical equipment be used for upgrading existing equipment?

Yes, a Personal Loan for medical equipment can be used for both purchasing new equipment and upgrading or refurbishing old equipment.

5. What is the interest rate on a Personal Loan for medical equipment?

Interest rates at Hero FinCorp start from 1.58% per month.