Medical Equipment Loan

Documents Required For Medical Equipment Loan

When applying for a business loan for Medical Equipment purchase, gathering the documents is a critical step in the loan application process. These documents serve as essential proof and verification to support the loan application for acquiring medical equipment. It also ensures that the borrower clearly understands their financial position and the terms of the loan, aiding in a smooth and transparent lending process.

1. Proof of Identity: Passport Copy/Voter ID card/PAN Card, etc.
2. KYC Documents: Other Applicable Registrations.
3. Proof of Income:
   • Income Tax Returns for the last two years with computation of income.
   • Bank Statements of the last 6 months
   • Private limited companies need to provide an MOU or partnership deed as part of the documentation process.
4. Qualification Documents: Degree Certificate and Certificate of Practice.

Medical Equipment Subsidy Schemes

Let’s go through the Subsidy schemes to avail a medical equipment loan, from below:

Production Linked Incentive Scheme for Medical Devices (Promoting Domestic Manufacturing of Medical Devices)

The Production Linked Incentives Scheme (PLI) Scheme for Medical Devices manufacturing proposes a financial incentive to boost domestic manufacturing and attract enormous investment in medical devices segments such as cancer care devices, radiology, and imaging devices, anesthetic devices, implants, etc.

Highlights:

• Incentive Structure: A 5% incentive on incremental sales from goods manufactured in India based on FY 2019-20.
• Target Segments: Encompasses capital equipment, implants, and consumables within the medical device industry.
• Eligibility Criteria: Subject to meeting committed investment and minimum threshold sales.
• Tenure of the Scheme: Runs from FY 2020-21 to FY 2027-28.

Production Linked Incentive Scheme for Pharmaceuticals (manufacturing, production & investment)

This scheme in pharmaceuticals and medical devices aims to boost India's manufacturing, foster innovation, and create global support through enhanced investment and production. 55 pharmaceutical companies qualifying for the 15,000 Crore Scheme will elevate India's standing as the "Pharmacy of the World," driving increased production and investment in these crucial sectors.

Highlights:

• Scheme Tenure: Spans from Financial Year 2020-21 to Financial Year 2028-29.
• Base Year: Financial Year 2019-20 serves as the reference point.
• Incentive Allocation: Total outlay of INR 15,000 Cr, divided among applicant groups:
  • Group A: INR 11,000 Cr
  • Group B: INR 2,250 Cr
  • Group C: INR 1,750 Cr
• Applicant Groups: Incentives allocated to different revenue categories to stimulate production and investment in pharmaceuticals and medical devices.

Note: The Medical Devices Scheme targets specialized devices such as cancer care, radiology, and anesthetic devices, while the Pharmaceuticals Scheme encompasses a wider scope, including pharmaceuticals and medical devices. Both aim to foster innovation and manufacturing in these sectors.

Promotion of Medical Device Parks

This scheme plans to reduce manufacturing costs, enhance accessibility, and improve the affordability of medical devices by allocating Rs. 400 crore from FY 2020-2021 to FY 2024-2025, aiming to bolster domestic medical device infrastructure.

Highlights:

• Infrastructure Enhancement: Establishing world-class testing and infrastructure facilities to enhance accessibility for essential infrastructure needs.
• Scheme Tenure: Operational from FY 2020-2021 to FY 2024-2025, ensuring a strategic duration for implementation.
• Financial Incentive: Provision of grants up to 100 Crore Per Park to encourage the development of these medical device parks.
• Geographic Distribution: Setting up 4 medical device parks across 4 states.

Types of Medical Equipments Loans

Medical equipment loans offer a strategic financial solution a broad spectrum of healthcare-related tools and technologies eligible for financing. Here is the medical equipment eligible for financing:

• Loans for Doctors: This financing solution allows individual medical practitioners to gain medical devices and equipment essential for their practice, such as diagnostic tools, surgical equipment, etc.
• Loans for Non-Individuals: Financing options designed for healthcare institutions like hospitals, clinics, diagnostic centers, and medical facilities to buy medical machinery, imaging equipment, patient monitoring systems, etc.
• Loans for Dentists: Here, funding is provided for dental professionals to get dental chairs, X-ray machines, dental lasers, and other necessary dental equipment required for their practice.
• Infrastructure Loan: Funding aimed at supporting the development or improvement of healthcare infrastructure, including construction or renovation of medical facilities, establishing specialized units, etc.
• Working Capital Finance: Financial support specifically designed to manage day-to-day operational expenses of healthcare facilities, ensuring smooth functioning and uninterrupted services.