Healthcare industry is one of the largest contributors to India’s economy, both in terms of revenue generation and providing employment.
It consists of a vast chain of hospitals, clinics, treatment centres, as well as services such as telemedicine, financing, insurance, etc.
Experts predict that India is likely to rank amongst the top 3 healthcare market by the end of 2020, by which time it will likely grow approximately 1.5 times in total investment. This sector is likely to touch USD9 billion by the end of this decade.
Contrastingly, experts consider that a country of 135 crore citizens requires a significantly better-equipped medical sector to cater to every patient.
India has one of the lowest doctors to patient ratio amongst developing countries; only one doctor caters to almost 1000 patients in India.
Overcoming the financial hurdle
To bridge this immense gap in the healthcare system, India’s medical industry requires a substantial increase in overall healthcare financing.
Investment in the medical industry, as well as credits like medical equipment loan, help private practitioners procure necessary equipment for their clinics, which, in turn, help provide better treatment to healthcare seekers.
Addressing the financing requirements of the medical industry has become one of the crucial factors of the Indian financial market. Today, professionals have access to both secure and unsecured credits that meet all their unique requirements.
Let’s take a look at the types of loans a doctor can opt to mitigate their financial requirements.
Unsecured credits
A healthcare professional can opt for various types of unsecured advances. These usually fall under the category of business loans, as the fund is invested to create better infrastructure for a practitioner, rather than his or her personal requirements.
Physician loan and such short-term unsecured credits offer up to Rs.37 lakh to eligible applicants, a substantial sum that can be utilised for most immediate business requirements. There are several reasons to take a business loan for doctors. One can build new infrastructure, hire skilled staff, or even introduce new services with the help of this fund.
Doctors can also opt for credits with specified use, such as medical equipment loan, instead of a business loan.
These credits can be utilised only for definite purposes, in this case, to upgrade or procure medical and testing equipment.
Medical equipment advance can prove especially helpful as these procurement and setup of these pieces of machinery often incur significant expenses.
Secured loans
Secured loans are long-term credits disbursed against mortgaged assets. This type of loan for doctors offers a substantially large loan amount, which can go as high as Rs.2 crore. Moreover, the repayment period of such credit is also significantly longer than unsecured loans; borrowers can opt for a loan tenor of 240 months or higher.
The loan amount is usually calculated based on the mortgaged asset’s market value and the applicant’s repayment capability. Loan to value ratio of such credits can reach as high as 80%, maximising the loan quantum.
One such credit is a loan against property for doctors. This type of secured loan does not come with any end-use restrictions, allowing the borrower to utilise the amount for business purpose.
With a high loan to value ratio, loan against property for doctors can prove to be the ideal choice to meet big-ticket expenses such as opening a new clinic, expand the facilities, etc.
The longer repayment period and affordable interest rate allow easy repayment, and prospective borrowers can use a doctor loan calculator to plan their repayment effectively.
Loan for doctors is available from almost every financial institution, including NBFCs like Bajaj Finserv. The company also provides pre-approved offers to existing customers, which helps simplify the application process and saves time.
More and more investment in the healthcare industry will definitely bridge the gap between service and demand. With the introduction of such credits, the Indian healthcare industry will be able to provide for the people in need with better efficiency.
