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Emerging technologies in the medical field open up new ways for doctors and practitioners to treat diseases in more effective ways. Hence, it becomes necessary for doctors to equip themselves with the latest state-of-the-art medical apparatus.   

However, upgrading your hospital or clinic with new medical equipment may cost you a significant financial outlay. For instance, a single unit of X-ray machines, MRI machines, life-support ventilators, and CAT scan machines can cost a fortune.

In this case, a medical equipment loan is a viable solution to upgrade your healthcare facility with the latest apparatus. As its name suggests, medical equipment financing allows you to access funds to purchase medical apparatus. You can pay back the loan amount and interest in easy EMIs from future cash inflows in the course of the repayment tenure. 

Read on to learn about medical equipment finance and how to avail of this lending facility. 

Features of Medical Equipment Loan

You need to have high-grade medical equipment to provide best-in-class medical services to your patients. As mentioned, the upgradation of medical equipment requires a considerable capital outlay, which you can finance with a medical equipment loan.

The following are some notable features of a loan for medical equipment you need to know before applying for it:

  • You can use the medical equipment loan amount only to purchase the latest state-of-the-art medical devices

  • Some banks and NBFCs offer customised medical devices loans to help you purchase the kind of equipment you need

  • Lending institutions provide flexible repayment tenures, ranging from 1 year to 7 years

  • Due to the involvement of huge investments, financial institutions generally offer these loans at lower interest rates

  • These loans are generally secured by the medical equipment you purchase

Eligibility for Medical Equipment Loan

When availing a medical equipment loan, you or your healthcare facility need to fulfil the following eligibility requirements:

  • Individuals need to be self-employed doctors having a minimum qualification of an MBBS or BDS degree

  • Self-employed doctors practising Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homeopathy can also apply for this loan 

  • For a firm to avail such a loan, the promoter of the firm needs to be a doctor with the above-mentioned qualifications

  • Hospitals, pathological laboratories and diagnostic centres, nursing homes, and clinics are eligible to apply for these loans

  • If you are a self-employed doctor, you must be within the age bracket of 25 to 65 years

  • Some financial institutions may require you to have 1-3 years of post-qualification work experience

  • You may need to have a spotless credit history to get loan approval

  • Some banks require you to have 3 years of office stability

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Documents Required for Medical Equipment Loan

The following are some documents you need to submit when applying for a loan for medical equipment:  

1. For Self-employed Doctors-

  • Proof of Identity: Aadhaar card, Voter ID, Passport, or PAN card

  • Proof of Residence: Aadhaar card, Voter ID, Passport, Utility bills, or Rent agreement

  • Proof of Business Address: Utility bills or rent agreement

  • Proof of Income: ITR for the last 2 years or bank statement of the previous 6 months

2. For a Firm or Company:

  • Proof of Business Address: PAN card, Business address proof, and other registration documents

  • Proof of Identity of Director, Proprietor, or Partner: Aadhaar card, Voter ID, Passport, or PAN card

Medical Equipment Loan Interest Rate & Charges

As a medical equipment loan program is secured against the medical devices you purchase, banks charge lower interest rates on these loans. The interest on this loan may vary depending on the lender, but it usually starts from 8.5% per annum. 

With the loan amount, you can purchase different loan equipment and repay the principal and interest across the repayment tenure. Furthermore, banks and NBFCs charge other types of fees as well when you avail a medical equipment loan.

For instance, you need to pay a processing fee of up to 2% (plus taxes) of the loan amount at the time of its disbursal. 

On the other hand, if you decide to prepay or foreclose the loan, the bank may charge you 4% (plus taxes) on the remaining amount. However, remember that these charges vary from one lender to another. 

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How to Apply for Medical Equipment Loan

Many banks and NBFCs allow you to apply for a medical equipment loan online. It makes the entire process of availing this loan relatively easy and seamless. To apply for medical equipment finance, follow these simple steps: 

  • Step 1: Visit the official website of the bank or NBFC from where you wish to avail this loan

  • Step 2: Go to the ‘Loans’ section and choose the ‘Medical Equipment Loan’ category  

  • Step 3: Click on the ‘Apply Now’ button to proceed to the application process

  • Step 4: Fill in the application form with accurate information, like name, date of birth, address, contact, and employment details

  • Step 5: Submit the form after completing all the details 

  • Step 6: Select the suitable loan amount and repayment tenure

  • Step 7: Once all these steps are completed, you will receive a confirmation message on your registered contact number

  • Step 8: The loan amount will be credited to your bank account   

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Advantages of Medical Equipment Loan

The following are some advantages you stand to enjoy when you avail a medical equipment loan:  

  • Larger Amount of Loans: With a medical equipment loan, you can get a loan amount of up to ₹10 Crores. With access to a larger amount of funds, equipping your healthcare facility with the latest apparatus becomes easier. 

  • High LTV: Medical device loans are secured by the equipment you purchase using the loan amount. These loans offer a high loan-to-value (LTV) ratio, ranging up to 85%-90% of the cost of the equipment. 

  • Low-Interest Rates: Since these loans are secured, you also enjoy low-interest rates on your borrowing, translating into higher savings. The interest rate on healthcare equipment finance starts from as low as 8.5% per annum.  

  • Easy Application Process: Most banks and NBFCs offer an online application process, making it easier for you to apply and avail the medical equipment loan. Moreover, this eliminates the need to visit the branch physically.

  • Flexible Loan Tenures: Most lending institutions offer flexible repayment tenures that can go up to a maximum period of 7 years.

  • Easy Repayment Options: Many banks and NBFCs offer flexible repayment options. For instance, some lending institutions offer an EMI moratorium of up to 6 months. 


To sum up, a medical equipment loan is of paramount importance for the healthcare sector. It allows these facilities to upgrade their equipment and employ more effective ways of treatment. 

As these devices can cost lakhs and even a crore, a health equipment loan program provides much-needed financial assistance. In other words, these devices allow healthcare facilities to diagnose diseases and save precious lives.

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FAQs for Medical Equipment Loan

What is the maximum loan tenure for a medical equipment loan?

The maximum loan tenure for a medical equipment loan is 7 years.

What is medical equipment financing?

Medical equipment financing refers to the amount you can borrow to purchase medical devices for your healthcare facility.

What equipment can be financed?

With a medical equipment loan, you can finance devices like X-ray machines, MRI or CT Scan machines, dental or surgical instruments, etc.

Can you foreclose or prepay your medical equipment loan?

Yes, you can prepay or foreclose your medical equipment loan at any point of repayment tenure. However, note that you will have to pay a fee of 4% (plus taxes) of the loan balance, and this amount can vary across lenders.

Do these loans come with letters of credit?

Although it depends on the bank, some banks offer you a letter of credit, accompanying the healthcare equipment finance.

Is it necessary for you to have a guarantor for a medical equipment loan?

No, it is not necessary for you to have a guarantor. However, it may depend on the bank’s policies and the loan amount you wish to borrow.

Do you need a good credit score for a medical equipment loan?

Yes, you need a good credit score to avail a medical equipment loan.

What does the medical equipment loan cover?

A medical equipment loan covers the cost of medical devices, instruments, and the balance of an existing loan in case of a balance transfer.

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