With NBFCs introducing several customised financial products, today, CAs, engineers, and even doctors can avail loans for their personal or business requirements without much hassle.
For example, doctors can avail a medical equipment loan to finance their various clinic requirements. These loans are specially designed to help doctors to buy the right medical equipment for their practice.
However, you have to follow some essential guidelines if you are applying for medical equipment loans. These include:
- Have a high credit score
Medical equipment loans are unsecured – you don’t have to pledge collateral to avail them. Hence, a good credit score is what lenders check before they provide the advance to the borrower. Such a score makes you a reliable customer who can repay the loan in due time without defaulting.
Also, a high CIBIL score can help you get attractive terms and conditions from the lender with a lower medical equipment loan interest rate. A CIBIL score of 750 is considered as high and good.
NBFCs like Bajaj Finserv provide Medical Equipment Loans at a competitive rate of interest and terms.
Tips to improve credit score
Availing a credit card is one of the ideal and quick ways to improve your credit score. However, you have to ensure the following:
- Pay your credit card debt in time
- Always pay the total amount due instead of the minimum amount
- Never utilise more than 30% of the assigned credit limit
Fulfil the eligibility criteria
The eligibility criteria for a medical equipment loan differs from lender to lender. Hence, you have to be eligible for a loan with the specific lender before you go ahead with the application process.
Some common eligibility criteria include:
- Dentists will require a minimum post-qualification experience of 5 years.
- Graduate doctors will require a minimum post-qualification experience of 2 years.
- Ayurveda and homoeopathic doctors will require minimum post-qualification experience of 6 years.
On the other hand, super-specialist doctors may not require any experience to qualify for the loan. Apart from experience, you may also be required to have an active practice. Make sure that you buy these must-have point-of-care medical equipment if have a running healthcare setup.
- Provide the required documents
You have to provide various essential documents when you apply for a medical equipment loan.
Generally, you will only require the following:
- KYC documents – Passport, Aadhaar, Driving License, Voter ID, PAN, etc.
- Medical registration certificate.
You may also have to provide the following:
- Audited Profit & Loss statement, balance sheet, etc. by a CA.
- Income tax returns
Some lenders may also ask you for additional documents depending on your background.
Take a note of the following tips when applying for a medical equipment loan:
- Lower your fixed monthly debt
Often, lenders may require you to lower your fixed monthly debt. These debts can include your other loans, credit card bills, etc.
Lenders calculate Fixed Obligation to Income Ratio (FOIR) – the ratio between your monthly income and fixed debt. Generally, lenders prefer customers who have a FOIR of 50% or lower.
- Keep the tenor short
Medical equipment loans can come with a maximum tenor of 8 years. Keeping the tenor long will decrease the EMIs but increase the total interest and vice versa.
- Calculate your eligibility before you apply
Use a loan eligibility calculator before you apply. Such a calculator will show you the amount you are eligible for, which will depend on your income, debts, etc.
Follow the guidelines and tips mentioned above to avail a medical equipment loan at a good interest rate and terms from top lenders and finance your practice with ease.