The Importance of Good Credit in Securing a Medical Equipment Loan

If you are a medical practitioner who hopes to start a medical facility, hospital, laboratory, or any healthcare-related business, a medical equipment loan can be the ideal financing option for you. On the other hand, you can use this loan to expand your existing healthcare business by increasing the number and efficiency of your medical equipment. 

Many banks and non-banking lenders are currently offering this loan. If you meet the eligibility criteria and hold a great credit score, you can move on to choosing your ideal lender. By doing so, you can open doors to high loan limits, longer repayment durations, tax benefits, and so much more!

Features and Benefits of a Medical Equipment Loan

Here are the major features of a medical equipment loan for your understanding. 

  • Open to All Medical Professionals

If you are a doctor, radiologist, dentist, owner of a hospital, laboratory, or medical facility, you can acquire a medical equipment loan. Even non-individuals such as specialty clinics, nursing homes, diagnostic labs, etc. can apply for a loan like this. 

  • Higher Loan Limit

Medical equipment can be very expensive and can cost you a fortune. Hence, medical equipment loans usually offer you a loan amount towards the higher end of the spectrum. This allows you to purchase the best equipment possible in order to set up your clinic or hospital. 

  • Long Repayment Tenures

Medical equipment loans can offer you an average tenure of 7 years. Some banks and non-banking companies can provide you with a repayment tenure that could be longer than that as well. 

  • Online Applications

Instead of living through the drudgery of making visits to a lender’s office, you can apply for a medical equipment loan online. You can visit the lender’s website and navigate to their application page. There, you can wrap-up the application process within minutes. 

  • No Mandatory Collateral

Some banks and non-banking lenders do not impose a mandate of providing a collateral in order to apply for a medical equipment loan. However, this will differ from lender to lender. Some might allow this up to a certain loan amount while others may not allow it at all. 

  • Foreclosure Charges

If you close a loan before the loan tenure is to end, you could be liable to paying foreclosure penalties. However, in the case of medical loans like physician loans and medical equipment loans, some lenders might not impose foreclosure charges upon you for repaying the loan early. 

  • Tax Benefits

Your medical equipment loan can help you save taxes, hence, helping you save money. You can utilise this tax benefit to invest more funds into your clinic, hospital, or business. 

  • Fulfil Your Dream

You’ve put a lot of effort into becoming a medical professional. If starting your own facility, clinic, or hospital is your dream, lack of funds shouldn’t hamper your ambition. A medical equipment loan can help you fix the lack of finance and finally, establish your dream medical facility. 

How Does Your Credit Matter?

When a lender analyses your medical equipment loan application, many determining factors are used as a checklist before it is approved. Your credit score is one such point on the checklist that needs to be tick-marked. 

Various indicators are studied to determine just how creditworthy an applicant is. This shows your repayment habits/trends and your credit history. A good credit score makes you a low-risk borrower since your financial history states that you have been disciplined and meticulous with regards to your repayments. 

This eases the process of approval and the turnaround time of the loan is lessened as well. If your case is a low-risk one, you can confidently hold the right to negotiate financing terms to fit your requirements better. 

Do You Qualify for a Medical Equipment Loan?

Don’t worry yourself wondering whether or not you are eligible to acquire a medical loan. If you identify with the following points, you can apply for a medical equipment loan without hesitation. 

  • You should be above 25 years of age
  • You cannot be above the age of 65 years at the time of the loan’s closure
  • You must hold a medical degree like Master of Dental Surgery (MDS), Doctor of Medicine (MD), Bachelor of Medicine and Bachelor of Surgery (MBBS), among other
  • You must have at least 1 year of post-qualification experience after completing your MBBS
  • If you hold an MD, MDS, or MS, you are required to hone at least 3 years of post-qualification experience
  • You should have a high credit score and a clean credit history
  • You could be asked for collateral and hence, it is good to ready with a collateral alternative

If you have ticked all the boxes off in the previous eligibility checklist, here are the documents you can now start collecting to prepare for your medical equipment loan application. 

  • Aadhaar Card
  • PAN Card
  • Business address proof
  • Residence address proof
  • Business registration
  • Qualification documents
  • Bank account statements (last 6 months)

A Quick Wrap-up…

Your dream of starting a business and yet pursuing your medical career isn’t as far fetched as many would assume. You will hear all kinds of opinions rattling on about how expensive that dream is. However, with a medical equipment loan, you can chase this ambition and make your dream a reality. 

Through the funds offered by this loan, you can build your hospital, medical facility, testing lab, speciality clinic, and so much more. Although, you must keep in mind how important factors like credit scores, credit history, and financial habits are. Hence, if you’d like to acquire a medical equipment loan in your near future, it would be wise to keep learning more about credit scores and how it is that you can build it.