Adopt New Technology with Medical Equipment Financing

The world today, is changing very rapidly. Innovation and change are happening at lightning speed. Keeping in mind this changing dynamic, can medical care continue to operate with old and obsolete equipment? Well, it can't, and one needs to use the latest medical equipment. However, such equipment is not cheap, and external financing plays a key role in solving this issue.

Medical equipment financing or medical equipment loans refer to those loans which are given to both individuals and non-individuals for purchasing new or refurbished medical equipment. It is a separate category of financing which rapidly gaining popularity among doctors and institutions alike.
 

Benefits of New Medical Equipment

1. Superior treatment: The curve of technological progress only goes higher, and the medical sector is no different. New features/ functionalities are added on an almost every day basis, and upgrading to new equipment gives you access to better features, allowing you to provide superior treatment to your patients.

2. Attract more business: The facilities provided by a hospital are critical for patients while choosing a hospital. Specifically, for the younger patients, who are more tech-savvy, the presence of latest equipment and medical technology is a must-have. Investing in new medical equipment opens your doors to a huge potential market and allows you to become a preferred choice for patients.

3. Streamline operations: Most of the latest equipment comes with a wide range of functionalities are superior to their older counterparts in many ways. This, in effect, reduces your dependency on third-party labs for running tests. Furthermore, most of the new medical equipment pieces are digital and have network capabilities. This allows you to create a connection with them (on the Internet or via a local network) and streamline your operations.

4. Increase revenue: All advantages listed above, lead to more patients, which in turn increase the overall revenue of the individual/ hospital. In addition, older medical equipment attracts higher maintenance costs, which can be saved by investing in newer more modern equipment.

Advantages of Medical Equipment Financing

Using new medical equipment is a good move for your profession. However, why is medical equipment financing the best course of action for this? Read further and find out:

1. Attractive Interest Rates: The interest rates on medical equipment loans are at par with base loans, ranging around 11% interest and are generally fixed. It makes MEF a very lucrative financing option.

2. High Loan Amount: Medical equipment pieces can be very expensive and are usually beyond the purchasing power of a single individual. Fortunately, MEF accommodates high loan amounts, starting from INR 10 lacs and going as high as INR 2 crore.

3. Longer Tenure: While usual loans (apart from few like home loans and car loans) need to be repaid in 2-3 years, MEF allows you a maximum repayment period of up to 7 years.

4. Easy Documentation and Flexible Terms: No special documents are required for applying for medical equipment loans. The terms of the loan are quite flexible and would not put a toll on your financial situation in any way.

5. Quick Approvals: The entire process for medical loan approval is considerably faster than other loans, as the process is far more streamlined. Such loans are usually approved within a few days.

6. Hassle-free Disbursals: Since the loan approval is fast, the loan disbursal is fast as well.

Eligibility and Documentation

In order to be eligible for medical equipment financing, following criteria must be satisfied:

1. Minimum qualification of MBBS or BDS in case of individuals, or the promoters with the said qualification in case of non-individuals.

2. A clear credit history of the applicants.

3. The age limit typically ranges between 25-65yrs, though some banks might have different criteria.

Documentation required:

1. KYC documents

2. Payment details for existing loans

3. Income Tax returns for past 3 years

4. Deed of Partnership in case of private limited companies.

5. Bank statements for past 1 year

Medical Equipment Financing is proving to be a game changer in the Medicare sector, allowing individuals and hospitals to invest in the latest medical technologies and provide better facilities to their patients. Not only is it good business, but it also helps improve the health conditions of society in general, leading to a win-win for all.