Setting up a medical practice like dental, ophthalmic, orthopaedic, etc. requires considerable investment owing to the expensive equipment.
Prices of dental chairs, phacoemulsifier, x-ray machines, etc. can go through the roof. On top of that, there are other expenses like rent, utility bills, staff wages, and so on.
Hence, numerous doctors go for healthcare financing in such situations. Not only when setting up, but many also avail financing to upgrade the existing equipment or expand their practice. Utilising funds to upgrade the medical equipment is an absolute necessity in today’s world concerning the patients’ safety and comfort.
Availing healthcare finance for such purposes is a great option as NBFCs provide loans specifically designed for the doctors. These loans are tailor-made and cater to all the monetary needs of medical practitioners.
There are various options that doctors can choose from when looking for financing. However, the two options they can avail for healthcare are business loans and loan against property.
First, have a look at business loans.
Business loans are unsecured loans, and so you don’t have to provide an asset as collateral for availing them.
Few features of business loans include:
- Rapid processing time
One of the reasons why business loans are great for healthcare financing is their processing time. NBFCs can process these loans and disburse them within 24 hours.
- Financing up to Rs. 30 Lakh
You can receive up to Rs. 30 Lakh when you avail a business loan.
- Short-term repayment periods
Business loans come with repayment tenure of 12 to 96 months. Hence, these loans are suitable for all your short-term financing needs.
- No charges on part pre-payment
Part pre-payment refers to the facility by which you can repay a large portion of your doctor loan. This can either reduce your EMIs or shorten your loan tenure.
Certain NBFCs don’t charge any additional fees for providing this facility to doctors.
Next, have a look at loan against property.
Loans against properties are secured loans that can provide several benefits to doctors.
Some features of these loans include:
- Quick processing
You can apply for a Loan against Property for Doctors from leading NBFCs and get it approved within 24 hours.
- Financing up to Rs. 2 Crore
Loan against property can provide you with healthcare financing of up to Rs. 2 Crore.
- Long-term repayment tenor
The repayment tenors for these loans can go up to 20 years. Hence, a loan against property is a viable option for long-term investments.
- Balance transfer facility
Some lenders provide a balance transfer facility with which you can transfer the outstanding balance of your loan to another lender who offers lower doctor loan interest rate.
Thus, you EMIs become low and more affordable. The second lender can also offer you a top-up loan over your existing one.
Few features that are available with both these loans include:
- Limited documentation requirement
You only have to provide a few documents like:
- Medical registration certificate
- KYC documents (PAN, Aadhaar, Driving License, Passport, Voter ID, etc.)
Loan against property require the following additional documents:
- Property documents that you are providing as collateral.
- P&L account statement and balance sheet for the previous 2 years.
- Income tax returns for the previous 2 years.
The healthcare financing that you need depends on how big your financial goals are. You have to assess the situation at hand and also the total cost of the loan before applying.
Author Bio –
Anuj Pandey is an experienced financial advisor and writer who is well known for his ability to market trends as well as for his financial knowledge. He has worked extensively in the finance sector and also written numerous blogs on finance and startup etc. and how they affect the customer in the present market scenario. He has done MBA in finance. Anuj has also amassed a great name for himself as a financial blogger.