Healthcare finance

Amidst the COVID situation, healthcare is a crucial sector all over the globe. This essential sector includes life-saving services like running a clinic, nursing home, or hospital. Hence, you must remain up to date and have first-class equipment, tools, and instruments. By carrying out healthcare financing, you can provide timely help to patients without health insurance or benefits while obtaining payments on time simultaneously. Also, this will help you build a strong and loyal client base.

What is Healthcare Finance?

While healthcare means any medical procedure to improve a person’s well-being, health care financing refers to the money required to manage these medical resources. Almost 90 million people in India grow poor due to medical expenses. The risk of impoverishing people due to healthcare expenses is 50%. On a smaller level, health care financing simply refers to payments to cover their medical expenses regarding any domain, i.e., hospital care, physician or dental care, prescriptions, etc. At the time of a health crisis, when the patient is not able to pay his/ her medical bills, healthcare finance acts as credit and enables them to undertake treatment for their ailment.

Business Loans for Hospitals

Various types of business loans are available for doctors and people in the related fields. These loans help them build or extend their services over a wider customer base and also help common people out of their health crisis safe and soundly.

Features and benefits of business loans for hospitals:

  1. Quick approval: Loan approved within 24 hours with quick online processing. 
  2. Flexible tenures: Choose your tenure to repay your loan for up to 96 months according to your comfort.
  3. No collateral required: Obtain a loan for your business without pledging any collateral.
  4. Money in 24 hours: Get your loan amount to your bank account within 24 hours of loan sanction.
  5. Flexible payments: You can choose to pay the interest only in EMIs for the initial months of the loan tenure.

What are the eligibility criteria?

The following are the eligibility criteria that are to be met to secure a healthcare business loan:

  1. You should be a residing citizen of India
  2. You should hold a degree in any of the following:
    1. MD/ DM/ MS – Super specialist doctors
    2. MBBS – graduate doctors
    3. BHMS/ BAMS – Ayurvedic/ Homeopathic doctors

What are the documents required?

The documents required are few and simple:

  1. KYC Documents 
  2. Medical registration documents

The interest rates usually range from 14 % to 17%, with a tenure ranging from 1 to 8 years.

Types of Healthcare Business Loans

The following are generally the types of business loans one can avail for healthcare businesses:

  1. Asset / medical equipment finance: This loan can be used to purchase standard medical equipment such as CT scanners, color dopplers, sonography machines, MRI machines, and X-ray Machines
  2. Infrastructure loan: This loan can be used to develop the healthcare infrastructure by setting up clinics, diagnostic centers, and hospitals
  3. Balance transfer of existing term loans or working capital
  4. Merchant establishment loan
  5. Working capital finance to fund day-to-day operational requirements like the purchase of consumables, maintenance bill payments, and paying salaries of staff.

Some Financing Options

  1. Equipment finance
  2. Project finance
  3. Bank guarantees
  4. Letters of credit
  5. Buyers’ credit
  6. Working capital limits
  7. Foreign Currency Non-Resident (FCNR) Bank Account funding

Loans for Nursing Homes

To match the pace of today’s people’s lifestyle, we require easily accessible and affordable nursing homes. From adding beds to upgrading equipment and adding machines, you can expand your nursing home for the better. Secured loans start from 25 Lakhs to 500 Lakhs with a tenure of 12 to 120 months. Unsecured loans start from 10 Lakhs to 50 Lakhs for a tenure of 12 to 48 months.

Eligibility criteria for Loans for Nursing homes:

  1. The minimum age of the borrower at the time of burrowing should be at least 27. And the maximum at the time of loan maturity should be 70 years. 
  2. The work experience or years of practice must at least be 5.
  3. The minimum turnover should be 200 lakh INR.
  4. The nursing home should have a capacity of at least 10 beds.
  5. IMA registration, NABH accreditation, and Civic body permission are mandatory
  6. Nursing homes run by qualified doctors only will be considered.
  7. The nursing home should have at least one qualified Medical Practitioner and 3 qualified nursing staff 24/7. 
  8. Degree Certificates & certificates with IMA/ state Medical Council are mandatory. 
  9. A Registration Certificate is a must for self-employed applicants.

The eligible entities are individual entrepreneurs, private limited companies, partnership firms, limited companies, and LLPs.

Loans for Pathology Labs

With the surge in covid cases on-and-off for the past two and a half years, the testing centers are getting ramped up, leading to a lack in the number of pathology labs. People living in tier-2 and tire-3 cities do not have access to medical labs.

Secured loans start from 25 Lakhs to 500 Lakhs with a tenure of 12 to 120 months. Unsecured loans start from 10 Lakhs to 50 Lakhs for a tenure of 12 to 48 months. Some important features are:

  1. Service within 30 minutes at your doorstep
  2. Simple eligibility criteria
  3. Nominal interest rates
  4. Convenient repayment schemes
  5. Premium security

Eligibility Criteria for Loans for Pathology labs:

  1. The minimum age of the borrower at the time of burrowing should be at least 27. And the maximum at the time of loan maturity should be 70 years. 
  2. The work experience or years of practice must at least be 5.

The eligible entities are individual entrepreneurs, private limited companies, partnership firms, limited companies, and LLPs.

Loans for Eye and Dental Clinics

A large number of Indians are affected by sight and dental issues. To meet the increasing demand for advanced surgeries and cosmetic procedures, extensive capital is required. Secured loans start from 25 Lakhs to 500 Lakhs with a tenure of 12 to 120 months. Unsecured loans start from 10 Lakhs to 50 Lakhs for a tenure of 12 to 48 months.

Eligibility Criteria for Loans for Eye and Dental Clinics:

  1. The minimum age of the borrower at the time of burrowing should be at least 27. And the maximum at the time of loan maturity should be 70 years. 
  2. A minimum experience of 5 years is required. 

The eligible entities are individual entrepreneurs, private limited companies, partnership firms, and LLPs.

The Bottom Line

With a rise in the requirement of pathology labs, the number of beds, and physicians in India during the COVID crisis, healthcare financing has become vital to the development of the health sector. Therefore, helping people at their tough times by tending to all their needs and paying their hospital bills is a noble deed.