The healthcare market in India is poised to reach Rs.8.6 trillion by 2020, a recent report revealed. A large section of individuals, nevertheless, remain deprived of quality healthcare and survive, especially in rural areas. Another report suggests that there are only 86 doctors for every 100,000 Indians. Thus, primarily due to a shortage of doctors as well as nurses and other healthcare providers, a large populace of patients suffer.
On top of that, due to limited funding availability, doctors often fail to set up healthcare clinics to extend their services. In this regard, healthcare finance can be an excellent funding solution for them. With the help of this fund, they can set up clinics in remote areas and finance other medical expenses.
However, like any credit option, medical practitioners need to follow some useful tips to leverage all the benefits of this fund.
Tips to follow while choosing a suitable healthcare finance
While several credit options are available for medical practitioners in India, it will be wiser to consider a few things before choosing one.
- Determine the exact funding requirement
Before opting for healthcare finance, doctors first need to determine the purpose of their borrowing and the exact loan amount they require. It thus later helps in repaying the loan conveniently. The requirements can be varying, and based on that one needs to apply for a loan.
However, they also need to check how to be eligible for a doctor loan before selecting a lender.
2. Check the end-use restrictions
Depending on the specialization of a doctor, the requirement also varies. Thus, before selecting healthcare finance, doctors need to know how they can use the funds without restrictions. Generally, they can use the funds for the following purposes.
- Expand their clinic to a new location.
- Renovate an existing healthcare facility.
- Hire medical assistants.
- Finance new medical equipment purchase.
- Maintain a healthy cash flow.
Alternatively, medical professionals can also opt for healthcare equipment finance to purchase advanced devices. However, before that, they need to ensure that they are buying the right medical equipment.
3. Opt for Flexi Loan facility
Often it becomes difficult to determine the exact financial requirement accurately. Moreover, doctors may need immediate funds to address any financial emergency. In such situations, the availability of a Flexi Loan facility can be of great help.
By settling for this healthcare finance option, they can withdraw money as and when required from a pre-sanctioned loan amount and repay the same with ease. Here, doctors also need to pay interest only on the amount withdrawn and not on the principal component.
Thus, this facility can be instrumental in reducing the burden of interest payment to a great extent.
4. Consider the additional charges
Another crucial factor that doctors need to keep in mind before applying for a loan for doctors is the charges that entail. For instance, they need to consider the loan processing fees, prepayment charges, penal interest, etc., if applicable.
These charges generally vary from one lender to another. Some financial institutions also do not charge additional fees for these.
5. Look for pre-approved offers
Besides providing these benefits, often healthcare equipment finance comes with pre-approved loan offers from lenders like Bajaj Finserv. It helps doctors to estimate the loan amount they are eligible for right at the onset of selecting the financing option.
The financial institution also provides pre-approved offers that further make the loan application process straightforward and prompt. Such offers are available for several forms of credit like personal loans, business loans, and many more. You can check your pre-approved offer by entering some essential credentials.
Healthcare finance can be of different types like for personal use, business use, etc. Thus, before settling for any lender, doctors first need to know which purpose they are going to spend for. For instance, some reputed NBFC offers funding of up to Rs.25 lakh for registered and eligible doctors.