Important for Medical Professionals to be Aware of Financing Schemes

The Indian healthcare sector, one of the largest globally, is expected to reach a market size of $372 billion by 2022.

This growth is attested to the growing availability of healthcare support to a wider base of patients from different regions and also the growing awareness in individuals to avail proper medical treatment from the organised healthcare sector in India.

Consequently, loans to service sector have witnessed a growth rate of 23.3% as of June 2018. A major portion of such growth is on account of professional loans.

Advancements in technology and improving ease of loan availability have prompted such an exceptional rate of growth in the medical sector.

A loan for medical professionals is designed by financial institutions to meet the various monetary obligations which a medical practitioner might come across, such as upgrading equipment.

Features of financial schemes for medical professionals

There are four types of financing schemes in India which medical professionals can avail to meet various financial obligations; namely –

• Loan against property.
• Business loans.
• Home loans.
• Personal loans.

Among the available credit facilities, a home loan and loan against property are secured credit facilities; a business loan and personal loan are unsecured credit facilities.

In case of secured financing schemes, individuals need to provide a collateral asset to the lender, against which the financer would determine the loan quantum and sanction the loan. In the case of unsecured loan options, there is no such requirement.

Secured loans

Individuals should duly consider the various aspects of secured financing schemes which they want to avail before applying for one.

Below mentioned are a few essential features which a loan for medical professionals should come with to adequately meet their monetary obligations –

1. High loan quantum

Medical professionals can avail up to Rs. 2 Crore with a secured loan facility. In the case of home loans, such amount is usage-bound and can only be used to purchase or construct a home. In contrast, a loan against property enables the individual to utilise the loan quantum for multiple purposes.

Henceforth, they can decide to use a healthcare equipment finance to upscale their medical institution by improving its infrastructure, enhance the quality of healthcare by purchasing state-of-the-art equipment such as a defibrillator, anaesthesia machines, ECG machine, etc.

Regardless, such medical practitioners should consider a few parameters before purchasing a defibrillator and other necessary equipment.

2. Insurance policy

Reputed financial institutions such as Bajaj Finserv provide the facility of indemnity insurance policy along with their Loans for Doctors.

Individuals can decide to avail this facility against a one-time premium to ensure their families do not have to bear the financial obligation of loan repayment in case of any unforeseen event which claims the borrower’s life.

Such financial institutions also provide pre-approved offers on loans to ensure less time and effort is required during loan processing.

3. Long repayment tenor

Repayment tenors for secured loans can be up to 18 years to 20 years, providing ample time to repay their substantial loan quantum conveniently.

In case of unsecured loans – business loan and personal loan – the loan quantum is comparatively low; however, such loans do not require the individual to pledge any collateral asset.

Individuals should check the following features when applying for an unsecured loan –

1. Loan quantum

Check the quantum provided by different financial institutions. Leading financiers offer unsecured loans of up to Rs. 37 Lakh.

2. End-use restrictions

Personal loans do not have any end-usage restriction to them, thus allowing the borrower to meet several financial requirements such as a wedding, vacation, etc.

In case of business loans, if such individual states his/her borrowing intent as the purchase of any medical equipment, then the financer disburses the loan amount directly to the vendor.

Medical practitioners can also decide to lease if the sanctioned loan amount does not cover the cost of such necessary equipment. They should duly consider between leasing and buying and which strategy they should adopt for their clinic’s equipment.

These are a few features of financing schemes for medical professionals. A loan for medical professionals is one of the most convenient measures for financing their monetary obligations adequately without bearing a substantial financial burden.