Healthcare industry is among India’s largest sectors generating ample revenue and employment throughout the demographic. The healthcare market is predicted to increase almost three-fold by 2022, reaching Rs. 8.6 trillion and contributing to 2.5% of the nation’s GDP.
A large pool of well-trained professionals, competitively lower costs, and availability of affordable credit are some of the primary factors fuelling such growth. Healthcare professionals have access to some funding options like medical equipment financing in India to pay for the equipment necessary to provide better diagnostic and treatment to their patients.
Industry experts suggest that the medical equipment market will grow at a CAGR of 6.77% through 2021. The evolving equipment market and large scale financing options have proven significantly beneficial for the healthcare industry in India.
There are several reasons why a loan for doctors for medical equipment financing is beneficial for the Indian healthcare industry. Let’s take a look.
- Minimum or no immediate cash outlay
Professionals availing medical equipment financing in India can pay for the cost of up gradation without depleting their savings. The saved capital can be allocated to finance other essential requirements of an organisation.
The medical equipment industry has witnessed several modifications in the last decade. Fast-Paced growth in the technological sector results in the introduction of several new upgradations over existing technology. External financial assistance helps healthcare professionals pay for multiple changes within a short time frame.
Healthcare professionals can purchase the necessary upgraded equipment without worrying about the associated costs. Moreover, an affordable doctor loan interest rate ensures timely repayment of the entire amount without straining the clinic’s working capital.
The cost of ownership is one of the limiting factors of the Indian healthcare industry. Many clinics operate with outdated equipment because of the scarcity of the necessary funds. Medical equipment financing can help a doctor pay for upgradation of several must-have point of care medical equipment like Haematology analyser, portable X-ray unit, portable endoscope machines, etc.
- Easy availability
An easy to meet eligibility criteria for doctor loan and simple application process makes it available for a broad group of physicians practising in the Indian healthcare industry. Several financial institutions offer these types of healthcare finance. Some lenders, look for only the minimum documents and basic eligibility criteria before disbursing such loans.
For example, MBBS doctors can apply for credit with only two years of experience, while BDS/MDS and BHMS/BAMS doctors require five years and six years of practice experience respectively. Super specialist doctors do not need any experience to apply for such advances.
Few things to consider
Upgrading medical equipment comes with several unique challenges that clinic owners often face. It is a large scale investment; however, it requires regular modernisation to keep up with the evolving technology. Practitioners should also ensure they are upgrading or buying the right medical equipment, which will best suit their type of practice and patient requirement.
Why is equipment financing necessary in the Indian healthcare industry?
The primary limiting factor of the healthcare industry is its restricted capital budget. Availing short or long-term finances to pay for the much-needed up gradation relieves the organisations from the monetary burden they would otherwise suffer. Medical equipment financing in India provides considerable flexibility in conserving working capital which is necessary to provide much needed financial relief to healthcare clinics.