A report stated that the telemedicine market in India is projected to reach $5.5 billion-mark between 2020 and 2025. The report further identifies the reasons behind this increasing demand to be the growth in teleconsultations, teleradiology, e-pharmacy, and telepathology. 

With an increased demand for the telemedicine market, medical professionals are now required to incorporate the latest technology and advanced diagnostics tools into their practice. However, the transition to telehealth-based practices can be quite expensive. 

  • For instance, the average cost of setting up a telemedicine facility ranges from Rs.25 lakh to Rs.30 lakh. 

Often medical professionals apply for a medical equipment loan to meet the financial requirement. To understand how useful this loan can be for medical professionals, one needs to understand its features and accompanying benefits. 

Medical equipment loan – An overview

This professional loan for doctors helps them to finance the purchase of new equipment, medical software, and technological set-ups. In turn, it comes in handy to help professionals improve the quality of telehealth services and advanced medicine they can provide to patients. 

In a nutshell, the following elucidates how medical practice acquisition loans prove useful for successful medical practice – 

  • It helps to avail the latest equipment.
  • Helps to set up the latest technology and machine.
  • Allows in upgrading technology used at clinics and hospitals for improved diagnosis and treatment.
  • Proves useful in maintaining and repairing high-end medical equipment and devices.

Nevertheless, doctors must ensure that they are buying the right medical equipment to enhance the quality of their practice and to make the most of the loan. 

Benefits of medical equipment loan

Ideally, the multiple features and accompanying benefits make the medical equipment loan a viable option to access funds. 

By applying for a loan for doctors, individuals can benefit in these ways –

 

  • Quick disbursal process

 

Leading financial institutions follow a simple application and documentation, which simplifies the verification process significantly. Collectively, it allows NBFCs to disburse the sanctioned loan amount to applicants’ accounts quickly, typically within 24 hours. 

As a result, applicants can access funds quickly and avail of the latest medical equipment and supporting technology without much delay. 

 

  • Affordable rates

 

The said loan accompanies an attractive rate of interest and reasonable additional charges. This makes it possible for borrowers to manage their loan burden better. 

Usually, applicants with strong creditworthiness, a low credit utilisation ratio, preferably up to 30%, and clean borrowing profile are better positioned to avail attractive repayment terms and low-interest rates from lenders.

 

  • Collateral-free financing of high loan

 

One of the best things about medical practice acquisition loans is that professionals can avail a high loan value of up to Rs.25 lakh without providing any asset as collateral. The high loan value helps to avail the best medical tools and equipment and eliminates the need to risk any business asset. 

 

  • The average cost of a capnography monitor ranges from Rs.48,000 to Rs.1.85 lakh.
  • Flexible repayment tenure

 

A flexible repayment tenure allows borrowers to plan and adjust their EMI payments according to their financial standing.

Usually, leading NBFCs offers a flexible tenure ranging from up to 72 months and allow borrowers to pick a loan that matches their repayment capability. 

To understand how tenure impacts the loan EMI amount, applicants can use a business loan calculator. 

Ideally, such a financial tool uses this formula – 

E = P * r * (1+r)^n / ((1+r)^n-1)

Users need to provide details like principal loan value, rate of interest and tenure to compute the monthly instalments in a few seconds. 

  1. Online account management facility

Financiers like Bajaj Finserv also allow borrowers to view and manage their loan accounts online. This feature comes in handy in more way than one and allows individuals to track their loan record easily. The facility to manage loan accounts online helps to plan and streamline repayment better. 

The financial institution also provides customers with pre-approved offers to make the process of availing a financial product less cumbersome. Such customised offers usually accompany multiple financial products, including business loans and personal loans. You can check your pre-approved offer by just entering your name and mobile number. 

All these combine to explain why medical professionals should consider availing a loan for doctors. Nevertheless, before applying for this loan, it is essential to find out the standard eligibility and document requirements laid down by lenders to improve your chances of approval.

Eligibility criteria

To apply for a medical equipment loan, professionals need to meet these criteria –

  • Super specialist with a registered MBBS degree.
  • Post-graduate professionals with a specialised and other PG Diploma with registered MBBS.
  • MBBS.
  • Registered BDS or MDS degree.
  • BAMS/BDS/BHMS.

It must be noted that the equipment lending institutions may require applicants to meet additional criteria.

Documents needed

Typically, to initiate the verification process and to back up loan eligibility, individuals need to hand over these documents –

  • KYC documents.
  • Medical registration certificate.
  • Proof of practice vintage.

Also, the set of documents that needs to be submitted may vary from one lending institution to another. Nevertheless, before applying for a high- value medical equipment loan, applicants must gauge their repayment capability to ensure a timely repayment.