All You Need to Know about Loans for Medical Equipment Finance

Jul 25, 2020

All You Need to Know about Loans for Medical Equipment Finance

There have been several life-changing breakthroughs in the medical field in the recent past. With the rapid intervention of technology in the medical field, the demand for advanced medical equipment has also witnessed a boost in recent years.

So much so that, as per data published by Healthcare Market Insight: India in 2019, the worth of the country’s medical device market has been pegged around $9 million with a projection of reaching $14 million by 2025.

However, while availing such advanced equipment has become a necessity to provide the best of healthcare, it has also become difficult for independent clinics and smaller hospitals to incur the significant cost associated with such purchases.

In this scenario, availing a medical equipment loan has become a prerequisite for many healthcare providers across the nation.

What is a Loan for Medical Equipment?

Every hospital or clinic has basic necessities with regards to the equipment they require to provide regular treatment facilities. The cost of such equipment can start from a few thousands but can even go up to a few lakhs.

To arrange the finances for purchasing such equipment, most professionals opt for a medical equipment loan from trustworthy financial institutions. Such loans can be availed by doctors, medical practitioners, as well as, entities like private and public limited organisations, partnerships, societies and trusts, engaged in the business of providing healthcare.

What are some of the Most Crucial Medical Equipment Required?

To set up a clinic or more importantly a hospital, one has to have access to the following medical equipment necessary for treatment –

  • Hospital beds
  • Integrated diagnostic systems
  • ECG machines
  • Traction equipment
  • Medical lights
  • Mobility aids
  • X-Ray machines
  • Ventilators
  • Defibrillators
  • Hospital stretchers
  • ICU equipment like respiratory and cardiac support systems, emergency resuscitation devices, etc.

These are, but a few of the long list of medical devices and equipment required to ensure that a hospital or clinic is well equipped to provide quality healthcare.

Now, financing the purchase of such equipment can put a serious dent in the working capital or the budget of running the hospital or clinic, unless one chooses to opt for an advance. For instance, a ventilator cost to buy in India can be somewhere around Rs.1.5 lakh, which is an exorbitant amount by itself. Add to that the combined cost of all other latest medical equipment in the market and financing them without borrowing credits is impractical.

In this regard, opting for a gold loan to fund the purchase of medical equipment can be the most lucrative option.

Gold loan: Secured Credits to Fund the Purchase of Medical Equipment

While considering availing a loan to buy hospital beds, gold loans would hardly be the first option anyone would have considered a couple of years ago. Nonetheless, with the advent of lenders like Rupeek Fintech Private Limited, borrowing funds against gold jewellery is more accessible and organised.

There are several reasons why a gold why gold loan can be the best option to fund the purchase of medical equipment. Some of them are as follows –

  1. A high LTV amount

The LTV offered by reputed lenders against per gram of gold must be set in compliance with RBI directives. This allows one to avail the highest possible financing against their gold, which previously was impossible from the unorganised lending sector. The high-value loan amount availed against the jewellery at attractive interest rates, can be easily utilised to purchase medical equipment for one’s hospital, clinic or practice.

  1. No end-use restrictions imposed on the availed funds

The loan amount availed against gold can be utilised to finance any requirement without restrictions. Whether you need the loan for traction equipments, or to set up an ICU in your small hospital, this advance can be used to cover all necessary expenses. Furthermore, if you are setting up a hospital, medical equipment might not be the only thing in your list of purchases. A gold loan is particularly useful in this scenario since it does not come with usage instructions.

  1. Easy repayment terms

Unlike other advances where you have to repay through EMIs consisting of both the principal and interest components, gold loan offers the advantage of bullet repayment. That is, you can repay the borrowed amount at the end of your loan tenure while making monthly interest payments. This facility negates the chances of defaulting EMIs, making repayment easier.

  1. Minimal documentation process

Suppose you want to buy a ventilator buy ventilator online and you require immediate funds for the purchase. Under such circumstances, it is undesirable to get caught up in a cumbersome loan application process to arrange for the finances.

Here, Rupeek’s hassle-free application process with minimal documentation requisite will assist you to avail the funds at the earliest. After you make an application through Rupeek’s app or by placing a call, the lender will appoint a loan manager to arrive at your place and complete all the formalities. The entirety of the documentation process will then consist of recording your KYC details with the company.

  1. Instant loan disbursal

Rupeek’s loan underwriting to disbursal process is completed in a span of 30 minutes. The loan manager appointed for gold valuation and completion of the formalities will wait until the loan amount is transferred to your account before leaving with your jewellery. Thus, if you require funds on an emergency basis, opting for a gold loan is probably the fastest and most efficient way to avail it.

  1. A flexible tenure

Gold loans come with a flexible tenure ranging between 3 months and 6 months for loan repayment. This loan term can be increased by another 6 months, if you opt to renew the advance.

With such benefits and more, borrowing against gold to finance the purchase of equipment for your hospital makes for a befitting medical equipment loan.

Nonetheless, before opting for the advance, it is crucial to understand how the valuation of your gold is carried out. The formula for it is given by –

Amount for gold loan = Net weight x Per Gram Rate x Purity

This gives the amount of gold loan per gram, against which the LTV is calculated as per RBI directives.

With this formula, you can easily evaluate the amount you can avail against the gold you can pledge, allowing you to plan your finances for medical equipment more accurately!