Medical Equipment Loan

A medical equipment loan is a specific type of financing designed to help healthcare providers, medical professionals, clinics, hospitals, or businesses gain necessary medical equipment. This funding option allows individuals or institutions to purchase or upgrade medical devices, machinery, tools, or technology essential for healthcare services.

However, a personal loan can be equally helpful for covering medical expenses. For those seeking unsecured loans, Buddy Loan stands out as a reliable source of help to get a business loan.

Through Buddy Loan, you can access a network of suitable lenders and secure a loan at competitive interest rates, starting at 11.99% per annum.

Medical Equipment Loan Interest Rates

Loan Type Loan amount Interest rate p.a
Bajaj Finserv – Medical equipment finance ₹1 lakh to ₹6 crore 7% – 14%
SBI – Healthcare business loan ₹10 lakh to ₹20 crore Starts at 10.10%
ICICI – Healthcare equipment loan Up to 90% of the equipment cost 8.5% – 13.5%
Tata Capital – Equipment finance ₹3 lakh to ₹ 50 lakh 12% – 20%
IndusInd Bank- Medical equipment loan ₹3 lakh to ₹10 crore 8.5% – 12%

Medical Equipment Loan Fees & Charges

When considering a Medical Equipment Loan, these fees encompass various aspects of the loan, affecting the overall cost and financial feasibility of acquiring a medical equipment loan.

When applying for a Medical Equipment Loan, these fees affect the overall cost, effecting the financial practicality of acquiring the loan.

Loan amount Ranges from Rs. 5 lakhs and goes up to Rs. 20 crores.
Repayment Period 3 to 7 years
Processing Fee Upto 2 % of the loan amount
Prepayment charge About 4%- 5% of the remaining amount
Late Payment Penalty 1% to 3% per month on unpaid EMI

Medical Equipment Loan Eligibility Criteria

These criteria are specifically designed to ensure that healthcare professionals, entities, and institutions meet certain requirements to avail themselves of the loan facility.

  • Individuals Eligible: Self-employed doctors, Proprietorship firms, partnerships, and Private Limited companies.
  • Financial Requirements: Submission of ITR/financials as needed.
  • Age: 25 to 70 years (at the term's end & may differ with the state’s policy).
  • Residence Stability: Owned residence or 3 years of stability in rented accommodation.
  • Office Stability: Owned office space or 2 years of stability in rented premises.
  • Credit Record: The credit score should be over 650.

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Medical Equipment Loan EMI Calculator

The EMI Calculator for Medical Equipment Loans is a convenient tool that helps understand the payable EMI in an informed manner. Users can input the loan amount, tenure, and interest rate to instantly calculate the expected Equated Monthly Installment (EMI).

Monthly EMI 86
Principal Amount 1,000
Total Interest 32
Total Amount 1,032.00

Year Month Principal (A) Interest (B) EMI (A+B) Balance Loan Paid to Date (%)

However, you can use the EMI calculator below to have an understanding of monthly repayment obligations. It assists borrowers in assessing their financial capabilities to plan their budgets accordingly.

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.

What factors are considered when applying for a medical equipment loan?

Lenders typically consider the creditworthiness of the borrower, the financial stability of the healthcare facility, the purpose of the loan, and the potential impact of the equipment on patient care and revenue generation.

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.


  • 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.


  • 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.

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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.


  • 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.

Features & Benefits of Medical Equipment Loan

These features and benefits help you make the loan availing process easier and support the improvement of healthcare services through accessible financing options:

Loan Amount

Get Medical Equipment
Loan Starting at 3lacs


The tenure can extend
upto 84 months

Interest Rates

Lenders provide
competitivep rices
to suit your
financial needs

Hassle freen

Avail personal loan
with entirely digitised

Quick Approval

Get instant loan approval

No Charges

No hidden charges and
penalties levied

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Choose the Right Loan for Your Medical Equipment Needs

Choosing the right loan for medical equipment needs involves several key steps for a suitable and beneficial financing option:

  • Assess Equipment Requirements: Determine the medical equipment required for your practice or healthcare facility. Understand the costs, features, and functionalities needed.
  • Evaluate Financing Options: Research and compare different loan types available from banks, financial institutions, or specialized medical equipment lenders. Consider factors like interest rates, repayment terms, and loan amounts.
  • Understand Loan Terms: As you read through the webpage, understand the terms and conditions of each loan option. Pay attention to interest rates (fixed or variable), repayment schedules, fees, and any collateral requirements.
  • Financial Assessment: Evaluate your financial situation to ensure affordability and feasibility of loan repayment. Consider your cash flow, revenue projections, and budget constraints.
  • Compare Interest Rates: Compare interest rates among lenders and understand how they might affect the total cost of borrowing.
  • Repayment Flexibility: Look for loan options that offer flexible repayment terms, such as longer tenures or options for prepayment without penalties, aligning with your financial capabilities.
  • Consider Additional Benefits: Some lenders may offer additional benefits like tax advantages, deferred payments, or equipment maintenance packages. Evaluate these perks when making your decision.

How to Apply for Medical Equipment Loan

Here are the quick steps that you can apply for a medical equipment loan:

  • Step 1: Visit the lender's website to initiate the application process for medical equipment finance.
  • Step 2: Fill in essential personal details such as your name, contact number, date of birth (DOB), desired loan amount, and income details.
  • Step 3: Choose your preferred repayment tenure and proceed by completing the Know Your Customer (KYC) process. This may involve uploading necessary identification documents and other required proofs.
  • Step 4: Complete the application by providing comprehensive details about the medical equipment you intend to purchase, along with any additional information requested by the lender.
  • Step 5: Review the submitted application for accuracy and completeness.
  • Step 6: Submit the medical equipment finance application through the lender's online platform
  • Step 7: Stay in contact with the lender's representative to address any queries or provide additional information required to process your application smoothly.

Steps to Apply for a Business Loan

You can avail a business loan as per your need for medical equipment purchase. Buddy Loan provides you with a pool of RBI approved lenders, providing business loans of upto 50 lakhs.

Check the steps below and apply for a loan now!

  • Step 1: Visit or Download & install the Buddy Loan app (Android or iOS).
  • Step 2: Open the business loan application page. Enter your mobile number and OTP.
  • Step 3: Specify the desired loan amount and email. Next, choose the Business Loan option.
  • Step 4: Choose if you have a Business Proof (Yes/ No)
    • If ‘Yes’ (If you have a business proof), enter your business and personal details.
    • Or

    • If ‘No’ (If you do not have a business proof), choose the profession type and enter your personal details.
  • Step 5: Provide income details and Click the ‘Submit’ button.

Apply for a business loan now!

Frequently Asked Questions

Medical Equipment Loan is specialized financing for healthcare professionals or entities to purchase or upgrade medical devices. It operates like a standard loan, providing funds solely for acquiring necessary medical equipment.

Hospitals, clinics, individual practitioners, diagnostic centers, and healthcare-related businesses are eligible to access Medical Equipment Loans.

A wide range of medical devices including diagnostic tools, surgical equipment, imaging devices, laboratory instruments, and dental equipment can typically be financed through these loans.

Repayment periods vary but often range from several months to a few years, depending on factors like loan amount and borrower's financial circumstances.

Yes, both small clinics and individual practitioners are generally eligible to apply for these loans to acquire necessary medical devices for their practices.

Depending on regional tax laws, tax benefits or deductions might be available for the interest paid on Medical Equipment Loans. Consult a tax advisor for specific details.

Yes, Medical Equipment Loans can be utilized to upgrade existing medical equipment, allowing healthcare providers to invest in newer technologies and improve services.

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