The Indian Government is planning to introduce a credit incentive programme of $500 billion to help India’s healthcare sector. This has encouraged medical professionals to establish their practice to take part in extending the current healthcare infrastructure of this country.
Setting up a practice from the ground up requires significant investment, and a medical equipment loan can solve this purpose. Nonetheless, before opting for a credit facility like this, one should consider a few factors to make an informed decision.
5 factors to consider while applying for a medical equipment loan
With a medical equipment loan in India, medical professionals can efficiently meet any expenses related to upgrading or purchasing new machinery for their clinics. Along with most expensive wood that, they maintain the working capital and meet other expenses. Though loan for doctors come with a range of benefits, it also comes with certain terms and conditions. Thus, borrowers need to be well-informed about a few factors that can help them make an informed decision.
- Need for collateral
The first factor to consider here is whether it requires collateral or not to avail funds. Usually, financial products like these do not entail any collateral requirement, which makes borrowing effortless.
- Applicable interest rates
Before availing of a medical equipment loan, individuals must check the interest rates levied by various financial institutions. This comparison will allow borrowers to opt for a loan with affordable interest rates. While making this comparison, one can take help from the EMI loan calculator to evaluate the most cost-effective EMI option and reduce their total debt.
- Loan eligibility and documentation
Before availing of any credit, borrowers need to meet certain eligibility parameters. Similarly, before applying for this financial option, individuals need to know how to be eligible for a doctor loan. For instance, the qualifying parameters for MD/MS/ MDS will not be similar to others.
Apart from these, one of the significant determinants that borrowers must take care of is the credit score or report. Based on this score or report, lenders assess the creditworthiness of a borrower. Therefore, borrowers must adopt necessary measures to improve their credit score by repaying the debts on time, maintaining credit utilisation ratio, not applying for multiple loans at once etc. Through these factors, doctors can increase their CIBIL score to avail preferred loan amounts.
Besides, borrowers need to produce certain documents to ensure hassle-free approval. This includes:
- KYC documents
- IT returns, PR statement, a balance sheet of last 2 years
- Medical registration certificate
- Copy of mortgaged property documents
- Repayment options
Another crucial factor to consider here is the availability of repayment options. Besides the traditional EMIs, borrowers can also take advantage of prepayment and foreclosure to streamline their repayment and close their loan successfully.
- Additional charges
Factoring in the additional charges is another vital factor to consider before applying for a medical equipment loan. This includes processing fees, legal charges, and prepayment and foreclosure charges. Not counting in these charges can increase one’s total borrowing cost.
- Pre-approved offers
Apart from these, one should also look at the pre-approved offers offered by various financial institutions. Leading financial institutions like Bajaj Finserv extend this facility to their current customers, which streamline the application process. This offer applies to a host of secured and unsecured financial products. Borrowers can check their pre-approved offers by mentioning their name and contact information.
Along with these, borrowers must purchase medical liability insurance that will significantly cover all the expenses incurred from any malpractice or disputed service, resulting in a patient’s death or massive injury.
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Besides, considering these factors, borrowers must go through the medical equipment loan agreement minutely to make an informed decision.