The medical equipment market is one of the largest sectors in India with more than 800 players at its helm. It is currently worth more than $5 billion or Rs. 3.5 Lakh Crore and contributes about 5% of the total healthcare industry.
The industry also has had investments from numerous foreign companies in recent years which have contributed adversely to its expansion.
However, top-end medical equipment is still mostly imported and thus carry expensive price tags. Plus, MRI machines and CT scanners are some that India does not even manufacture.
Lending institutions in India provide loan for medical equipment to help healthcare professionals avoid a financial burden when purchasing them. Loans like these are specifically aimed for doctors and physicians who seek to purchase the best medical tools and equipment for their healthcare setups.
Answering these questions will help you to apply for such a loan:
- Are you eligible for the loan?
NBFCs which provide these loans require doctors to hold a post-qualification experience at practice. Although such requirements vary between lenders, a general overview will include:
The experience differs with doctors:
- Homoeopathic doctors (DHMS) require at least 15 years of experience.
- Ayurveda and Homeopathic doctors need to have a minimum of 6 years of experience.
- Graduate doctors need to have at least 2 years of experience.
- Dentists need to have a minimum of 5 years of experience.
Super specialist doctors may not need to hold any post-qualification experience.
- Do you have all the necessary documents?
Some NBFCs can provide you with a loan for medical equipment against only your medical registration certificate and identity proof such as Passport, Driving License, Aadhaar, Voter ID, PAN, etc.
You may have to provide additional documents like income tax returns of the previous year, bank account statements of the last 3 months, and proof that your practice is at least 3 years old.
- Do you have a high credit score?
Lenders will check your credit score when you apply for such an unsecured loan. Financial institutions prefer borrowers with credit scores around or above 750. You may only avail this loan if you hold such a CIBIL score.
Using a secured credit card can help you improve your CIBIL score. Financial institutions provide these cards against a fixed deposit. Ensure that you use only 30% of your credit limit and pay the total due amount within the grace period to see a positive effect on your score.
- Is your debt-to-income ratio of less than 50%?
A lender might reject your loan application of the ratio of your monthly income to your fixed monthly obligations is more than 50%. To lower the ratio, you can foreclose any existing loans and clear credit card debt.
Apply for a medical equipment loan after you pay off all your debts. Doing so will make you more eligible for such loans. NBFCs like Bajaj Finserv offer loan amounts of up to Rs. 30 Lakh with attractive EMIs against minimal documentation to help you purchase the necessary equipment.
- Have you decided the loan tenor?
Longer loan tenors decrease your EMIs compared to shorter ones. However, longer tenors will increase your cost of the loan compared to shorter tenors.
Hence, you have to decide on the tenor, and a loan EMI calculator can help you do so. This calculator not only tells you the EMIs but also aids to determine the right tenor.
- What is the loan amount you want?
These loans can provide advances of up to Rs. 30 Lakh, ample funds to purchase the must-have point-of-care medical equipment. However, you have to determine the amount you seek.
A loan eligibility calculator can help you here. It can help you calculate the number of funds you are eligible for based on your experience, income, existing debt, etc. Applying for a loan amount is critical; your application might get rejected if you ask for an unreasonable sum. Also, a larger loan amount will mean larger EMIs across the same tenor which may become financially challenging for you.
Ensure all of the above before you apply for a medical equipment loan. Remember, your credit score will fall if a lender rejects your loan application.