Medical practice loans are meant to address the financial needs of physicians, specialists, and other healthcare professionals. Now, these loans can be used to finance several purposes, starting from equipment financing, operational costs, setting up a new practice, expanding existing practice, upgrading inventory, and so on.
Depending on your purpose of borrowing, the lender thus provides relevant loans. For example, physicians can avail a medical equipment loan to purchase, upgrade, or maintain equipment, devices, tools, and other advanced tech required in such practices. Further, here’s a detailed insight into the available loan types for physicians.
6 Different types of medical practice loans
While availing medical practice loans, physicians get multiple types of financing options to choose from. The ideal kind of loan shall be selected according to fund needs, processing time, repayment terms, affordability, collateral-needs, and so on. Here are the different types of medical practice loans for physician:
1-Traditional loans for doctors
Various traditional financial institutions offer dedicated loan services to medical practitioners. Eligible applicants with the specified qualifications can borrow these funds which are easy to avail and repay as well. However, the eligibility criteria might vary from one lender to another. NBFCs are also an ideal source to borrow loans for physicians from.
Term loans signify any such loans which are lent by financial institutions for a given period. During this period, the borrower is liable to repay the loan amount entirely. The term or tenure is likely to vary based on a lender’s norms, your credit history, loan amount, purpose, and so on. In some cases, the borrower might also get the chance to choose a tenure as per his convenience.
3-Business lines of credit
A business line of credit functions like a business credit card, on which a particular limit is fixed. The borrower can withdraw within that limit and pay interest only that amount. It is one of the loan options which doctors with a low credit score can avail. The credit limit might vary according to the score because it signifies an individual’s financial credibility.
4-Medical equipment loan
Loans for medical equipment are meant to provide funds for the purchase of various machines such as ECG, MRI, X-ray, scanners, tools, monitors, etc. Medical equipment loans play a crucial role in assisting labs, clinics, and other healthcare centres to invest in advanced and top-notch technology for patients’ treatments.
5-Professional loan for medical practitioners
Other than term loans, medical equipment loans, and the other medical practice loans mentioned above, dedicated professional loans for doctors can also be availed to meet expenses of medical practice. These loans are tailor-made to assist healthcare professionals in addressing their financial requirements.
NBFCs like Bajaj Finserv also provide pre-approved offers for a faster and hassle-free funding experience. One can avail these offers on personal loans, credit cards, and business loans along with a range of financial products. Provide only your essential contact details to check your pre-approved offer.
Financing options such as medical equipment loans are more of a purpose-specific medical practice advance. On the other hand, loans like term loans, professional loans, and so on are multi-purpose funding options. The key to availing suitable funds is to outline your financing needs first. Availing the ideal type of funds fulfils the purpose of borrowing as well as renders repayment simpler.
Medical practice loans can be either secured as well as unsecured. While the latter category could go up to Rs.25 lakh, secured funds can facilitate a principal of up to Rs.2 crore. You can thus choose your financing option accordingly to fulfil your practice’s funding needs as suited.