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5 Things You Must Know About Healthcare Finance in India

5 Things You Must Know About Healthcare Finance in India

In FY 2020, almost 1.29%, or Rs.2.6 trillion of the country’s GDP was spent in the health care sector. This figure shows an improvement from past years, but it is still insufficient for a diverse and vast country like India.

Moreover, inadequate hospital bed to patient ratio, over-burdened hospitals, low-quality medical facilities, and a rising health-conscious consumer base stimulate the opportunity for doctors to establish their own practice or clinic.

Since the health care sector is evolving rapidly, meeting market requirements, providing top-quality facilities, medical devices, and equipment demand considerable investment. In this regard, healthcare finance can be an effective solution. With the help of this financing option, individuals can set up a clinic and bear other medical expenses.

Nevertheless, applicants must consider certain factors before opting for this loan to ensure smooth repayment of such loan amount. Listed below are some aspects that borrowers should determine beforehand.

  • Type of loan

There are different types of health care finance, each catering to a specific need or situation. In general, most lenders offer the following loan variants to medical professionals: 

  • Loan against property for doctors
  • Personal loan for doctors
  • Business loan for doctors

Borrowers must remember that the business loans and personal loans are unsecured, whereas the loan against property is secured credit. Also, before opting for any of these credits, borrowers must understand the purpose of borrowing and the exact loan amount they require. 

It will help them to repay the loan amount conveniently. Moreover, understanding which financial product is suitable for which situation is crucial. The requirements can be diverse, and depending on that, one should apply for a loan.

However, borrowers need to check how to be eligible for a doctor loan before initiating the application process. 

  • Required loan amount

Based on the purpose of borrowing, doctors may need loans for varied professional and personal requirements. For instance, financing a medical establishment or expanding a clinic requires a significant quantum of funds. 

On the other hand, financing a vacation may not require sizeable funds. Moreover, loans for physicians can be used to purchase advanced equipment, hire staff etc. However, before that, one must ensure that they are buying the right medical equipment and its overall cost. 

Therefore, before applying for a health care finance option, you must know the exact amount that you need to meet a specific requirement. 

  • Eligibility parameters

Eligibility factors for availing a loan can differ from one lender to another. Additionally, these requirements vary based on whether one is opting for a secured or unsecured credit. 

Understanding the eligibility factors will help borrowers to apply for funds and receive approval easily. In addition, meeting such requirements will enable borrowers to avail of the best terms and advantages on these credits.

  • Choose Flexi term loan

It is often difficult to determine the exact financial requirement. Moreover, doctors may need immediate funds to meet any financial emergencies. In such a scenario, a Flexi loan can prove to be a beneficial option. 

By choosing healthcare finance, individuals can withdraw money at their convenience and repay the amount with ease. Here, doctors have to pay an EMI that only comprises interest, and later they have to pay the principal amount.

  • Credit score and interest rate

Apart from eligibility criteria, one should find out the credit score requirement for a  loan for doctors. Most financial institutions seek applicants with credit scores ranging from 750-900. An individual with a lower credit score can avail of healthcare finance but at a higher interest rate. 

Borrowers can compare prevailing interest rates offered by leading financiers before selecting one. Typically, leading financial institutions like Bajaj Finserv offer loans to professionals at competitive interest rates. They also extend pre-approved offers to accelerate and simplify the loan application process. These offers are available on a wide range of financial products such as business loans, personal loans and credit cards. You can check your pre-approved offer online by entering your name and contact details.

Besides these, professionals should note that unsecured healthcare finance comes with no end-use restriction. Borrowers can use the fund to fulfil any personal or professional requirements. On the other hand, they can apply for a secured loan to meet specific or big-ticket expenses.