During the pandemic, the healthcare industry was one of the hardest-hit sectors. The severe burden on this sector has raised the importance of switching to more advanced medical equipment. However, given the cost of such devices, it is quite difficult for hospitals to purchase them by paying the entire amount upfront.
As a resultof this, financial institutions have come up with medical equipment loans.
What is a Medical Equipment Loan?
Operating a hospital necessitates a significant financial expenditure. If you own a healthcare facility, you must keep up with the latest technology or equipment in order to deliver best-in-class care. The cost of purchasing medical equipment can range from a few thousand rupees to several lakhs of rupees.
Businesses seek medical equipment loans to deal with such heavy purchases. The loan is available to individual medical practitioners, private limited companies, partnership firms, public limited companies, trusts, and societies. The preceding company must be in the medical field to be eligible for this financing.
What are some of the medical devices that you can purchase through a medical equipment loan?
A loan for medical equipment is accessible for purchasing almost every medical device.
- X-Ray machines
- ECG machines
- Traction devices
- Respiratory support systems available in the ICU
- Cardiac support systems
You may also acquire this loan to purchase hospital-related accessories other than medical devices such as hospital beds, medical lights, hospital stretchers, medical lights, and many more.
Features of Medical Equipment Loans
A loan for medical equipment is ideal for businesses seeking to purchase medical devices. The key features of this financing product are outlined below.
- High Loan Amount: Given the skyrocketing price of medical devices, financial institutions ensure that you never fall short of your funding requirements. The loan is available for the amount that starts from Rs. 10 lakhs.
- Flexible Tenure: The cost of purchasing medical devices is quite high. It would be nearly impossible for you to repay it in a short period of time if you bought it on credit. As such, by providing a flexible tenure of up to 7 years, financial institutions make sure that you repay your loan for medical equipment easily without disturbing your budget.
- Competitive Interest Rate: The loan for medical equipment is a secured kind of funding. The machine that you have purchased is hypothecated with the lender until it is paid in full. As a result of the lower credit risk, the loan is available at an interest rate starting at just 11%.
- Minimum Documentation: Despite the fact that the funds offered through this loan are of high value, financial institutions do not require a large number of documents. Lenders are mainly interested in the paperwork that shows you can easily pay off your debts.
Eligibility Conditions for Medical Equipment Loan:
A medical equipment loan is a secured form of financing. As such, when it comes to the eligibility criteria for such a loan, financial institutions are a little lenient.
Who can apply?
The loan is available to private limited companies, public limited companies, partnership firms, societies, trusts, and individual medical practitioners.
How much experience is required?
To apply for a loan for medical equipment, one needs to have at least five years of business experience. Additionally, a minimum of three years of experience is necessary for your current business.
How much should one earn to avail of this loan?
Minimum income criteria differ with every lending institution. However, as per the industry norms, one must have satisfactory business financial statements and a solid personal and business credit history.
Documents Required for Loan for Medical Equipment
The minimum documents required to avail of such a loan slightly varies with every lending institution. However, the few common ones across all the lenders are listed below.
- Audited financial statements for the last three years.
- Future financial projections
- KYC documents of all the directors/ partners. In the case of an individual medical practitioner, the KYC details along with a medical license are required.
- Documents related to the constitution of the company.
- Copy of registration certificate
How to Apply for a Medical Equipment Loan?
You can apply for a loan for medical equipment online. Refer to the below pointers to know about the steps involved.
- Research on many lenders that are offering this loan.
- Search and visit the website of the lender and go to the medical equipment loan section.
- Review the mandatory qualifying criteria and the key documents required.
- Fill out the online application form and upload all the basic documents that are requested on the online platform.
- Following the submission of your application. You will receive a call from a lender’s representative to collect additional information.
Obtaining a medical equipment loan is simple as long as you adhere to the above wordings and meet the lender’s basic qualification requirements.