Medical Equipment Loans

A medical equipment loan is a type of loan for doctors that is acquired to purchase medical equipment or update a medical facility.

Self-employed doctors, speciality clinics, diagnostic centers, nursing homes, etc., can acquire business loans. Small hospitals and healthcare specialising in Gynaecology, Cardiology, Radiology, Ophthalmology, etc., also avail of such loans.

Let’s dig deep to understand more about medical equipment loans.

Apply for Medical Equipment Loans

Types of Medical Equipment Loans

In theory, a medical equipment loan is just one type of loan, dwelling under the category of the healthcare sector. However, they can be classified into three primary types:

  • Loans for Doctors: It is a type of loan that can be acquired by doctors who wish to run a medical facility someday. The sum that you will be qualified to take would entirely rely on the bank you approach.
  • Loans for Non-Individuals: Non-individuals refer to private organisations, partnership firms, proprietorships, trusts, etc. Such loans are distinct from the ones that are designed for individuals since they have a higher limit on the sum which you can borrow.
  • Loans for dentists: These loans are designed specifically for dentists and the amount you can borrow is lesser than the loan for doctors.

Eligibility Criteria for Medical Equipment Loans

It is mandatory to be in the healthcare business in order to qualify for such loans. In addition, there are some eligibility criteria one needs to meet, which include:

  • Diagnostic centre
  • Super speciality or speciality hospital
  • IVF centres
  • Dialysis centres
  • Pathology lab
  • Speciality Clinics
  • Pharmaceutical manufacturer
  • Business operation expertise of 3-5 years in the medical sector
  • Recorded bank transactions with any particular bank for a minimum of one year
  • Any kind of trusts, healthcare proprietorship, private business organisations
  • Track record of repayment for not less than one year
  • Must have necessary approvals from the recognised authorities to function

Documents Required

In order to acquire such loans, it is mandatory to provide a set of documents to the particular bank. Although the documents may differ based on individual bank requirements, there are some common ones, which include:

  • Last 12 months’ bank statement
  • For a majority of the applicants, banks ask for ITR documents from the last 3 years
  • KYC documents for certain applicants
  • Some applicants need to provide information about all the loans that have been paid back for a tenure of 12 months or more
  • For private limited companies, the partnership deed is needed by some banks

Documents for Self-Employed Individuals

Here is the list of documents required when self-employed individuals apply for a medical equipment loan:

Proof of Identity

  • Passport copy, Voter ID, Pan card, etc.

Proof of Income

  • Last two years’ Income Tax Returns, together with income computation.
  • Last six months’ bank statements
  • Last two years’ Income Tax returns of Limited Companies, together with audited balance sheet
  • Last two years Income Tax returns of Partnership firms, together with authenticated P&L account and Balance Sheet. Not to mention, it must be accompanied with the last six months’ bank statements and the schedules and Annexure
  • Income Tax Return is not needed for an audited financial.

Interest Rates for Medical Equipment Loans

Most banks provide a fixed interest rate on loans, slightly more than the base lending rates. It means the interest rates can be as minimal as 12% per year.

However, it is essential to mention that some banking institutions offer interest rates on a monthly reducing balance. It means that the payable interest decrease as you repay the loan.

Purpose of Medical Equipment Loan

The primary purpose of a medical equipment loan is to provide capital for healthcare businesses. Such businesses include new set-ups, updating medical equipment, expanding present facilities, etc.

It is a term loan that needs to be secured. Such loans can be used for secondary necessities of a business. Businesses can take a loan at competitive rates and settle a repayment tenure to meet their business requirements. Several critical banks in the country provide such types of loans.

Using a medical equipment loan is not limited to purchasing medical equipment. It can be used for several other purposes as well. Here are some ways when acquiring a medical equipment loan can be a blessing for you and serve your patients well.

Improving Medical Equipment

To provide enhanced patient treatment, timely updating of medical equipment is significant. This is where a medical equipment loan comes in handy. It is the best financial solution for all your new and refurbished equipment necessities.

Thanks to such a loan, you can upgrade to the latest medical facilities without impacting your budget.

Not to mention, patients always feel reliable in medical facilities hosting the latest medical equipment. It boosts their confidence that state-of-the-art medical services will be delivered.

Acquiring Latest Technology

Since the healthcare market is constantly evolving and has witnessed some pioneering innovation, acquiring the latest technology is a must. Any healthcare service provider must provide technologically advanced medical treatment to all patients.

Leveraging technology, cures for several diseases, which were considered life-threatening, have been discovered. Hence, it is crucial to keep funding the latest technologies to benefit human society. Medical equipment loan helps in such an approach with their customised and flexible loan terms.

Start a New Diagnostic Unit

Diagnostic centres have a special value in the medical system. It provides the platform for prognosis and its relevant treatment. Leveraging a medical equipment loan and starting a new diagnostic centre with cutting-edge equipment used for enhanced diagnosis is possible.

Using medical equipment financing, you can purchase the following things for a diagnostic centre:

  • CT/ MRI scanners
  • Colour Doppler
  • X-Ray Machines
  • Ultrasound
  • Cath-Labs

Revamp your Medical Premises

Your healthcare facility must meet all the needs of your patients. The facility must meet the benchmark of a standard healthcare regulator.

Thanks to a medical equipment loan, you can revamp your medical premises to ensure it complies with the regulator’s guidelines. You can also use it to expand and add more beds to serve more patients or open a new speciality section.

Features and Benefits of Medical Equipment Loans

Here is the list of the features and benefits of medical equipment loans:

  • Medical loans can be costly. That’s why such loans provide high limits. Individual borrowers can take a loan of Rs. 2 crores. Companies can take more than that.
  • The typical repayment tenure for such medical loans can be 7 years maximum. Some banks offer a repayment tenure of slightly more than that.
  • Such loans can be availed from banks and other non-banking financial companies.
  • Due to the rising popularity of online banking, several banks allow online submission of applications.
  • Often the amount you wish to acquire is influenced by the city you reside in. To be clear, if you stay in a metropolitan city, you can borrow more than in non-metro cities. However, this feature applies only to companies.
  • Banks can charge a processing fee for such a loan. It can be 1-1.25% of the given loan amount. It is essential to mention that the processing fee also depends on the particular bank.

Other Loans for the Healthcare Industry

Loans for medical equipment are just one of the reasons for acquiring such funds for the healthcare industry.

Some of the other loans provided for the healthcare industry include:

  • Infrastructure Loan: Such loans is taken to pay for the construction of a premises or hospital. It can also be used to pay for other facilities that offer health services.
  • Working Capital Finance: It is a loan that can be taken to conduct day-to-day business operations seamlessly. It can be taken as an overdraft or advance.
  • Merchant Establishment Loan: It is also a type of working capital that is acquired against monthly credit card swipes.

How to Apply for a Medical Equipment Loan

The best way to procure a medical equipment loan is to go to the nearest bank branch and talk with a bank representative.

Since most medical equipment loans are designed per the requirements of businesses, providing details of the expansion or set-up is highly recommended. A personal consultation is also advisable to get the best loan terms.

A primary inquiry can be made online or by connecting with the bank’s customer service. Such service is offered 24×7, and they can provide critical details of the loan product over a call. Here is the list of documents required to avail of this loan, that includes:


  • Applicants’ and promoters’ KYC documents
  • Current 6 months bank statement
  • Proforma invoice of the machinery required to purchase
  • Project Reports
  • Duly filled out form of the applicant
  • Establishment and shop certificate
  • All loan details, if any
  • Audited financial statements for 2-3 years

Medical Equipment Loan Fees & Charges

Here is a table to understand medical equipment loan fees and charges:


Rate of InterestFixed rate of interest. Interest rate is linked with the External Benchmark Lending Rate (EBLR) or Marginal Cost of Funds Lending Rate (MCLR).
Foreclosure fees 4% + applicable taxes
No Objection CertificateNIL
Charges for dishonor of ECS/PDC/SIRs. 500 + applicable taxes
Duplicate Statement ChargesRs. 500 + applicable taxes
Taxes, DutiesAccording to the state laws
Non-refundable loan processing charges2% of the loan
Delay payment charges for EMI2 % PM + applicable taxes
Duplicate NOCRs. 200 + applicable taxes
Charges for repayment mode changeRs. 500 + applicable taxes
Charges for loan cancellationRs. 5000 + applicable taxes + interest for the period for which loan is utilized
Legal ChargesAs per the bank

Top Banks Offering Medical Equipment Loans

Here is the list of the leading banks that offer medical equipment loans in India:

  • HDFC Bank
  • IDFC Bank
  • SBI
  • DHFL
  • Bajaj Finserv


The world of medicine is continuously evolving with promising breakthroughs for significant health issues. Only with the help of doctors is such technology available to people.

As a result, patients can benefit from such technological breakthroughs. However, due to high costs, it can be difficult for doctors to avail such technology and benefit people. Only with the help of a medical equipment loan can doctors afford such technology.

Also, it does not put any additional pressure on the finances or cash flow of the borrower, making it one of the best financing options for healthcare practitioners.


It depends on the bank’s policy. Some banks need you to open an account and then procure such loans.

The majority of the time the total amount will not be covered. However, you will receive a percentage of what you require for the project.

Some banks provide the capital in lump sums. However, other banks provide the capital in instalments to pay for the expenses as they appear.

Such loans can be repaid by electronic clearance or post-dated cheques.

Some banks offer letters of credit with such loans. However, there are some banks who do not offer letters of credit with the loan.

No. Credit history for you and the co-applicant is crucial. It is important not to have any defaults in the credit history.

Yes. It is possible. Some banks offer loans for 10 years.

No, it is not. A guarantor is needed based on the amount you need and the relevant bank’s policy.

Yes. It is mandatory to have an operational bank account in order to take a medical loan.

It usually depends on the financial background of the particular applicant. Usually, 80% funds of the proforma invoice is provided.

A medical equipment loan can be repaid to the bank in the following two ways:

  • Post-dated cheques
  • ECS or Standing Instructions.

A medical equipment loan usually includes building infrastructure or purchase of an asset. It also covers working capital finance.