Individual Doctors

Individual doctors applying for the medical equipment finance scheme must have recognized qualification in any branch of medical science like MBBS/BDS or any other equivalent recognized degree in Allopathy with minimum 3 years of Post qualification experience or should be a post graduate with minimum 1 years of experience.

The individual must be licensed as a Doctor by the Indian Medical Council as an Allopathic medical practitioner. Further, post-graduate or diploma qualification is mandatory for financing of specialised equipment like CT SCAN, MRI SCAN, and PET scan.

Other Applicants

The applicant for medical equipment financing scheme must have a minimum experience of 2 years of operations of the diagnostic centre, pathological lab, hospital, nursing home, etc. Further, the applicant must have the required approvals or registrations from the statutory authority and employ qualified doctors.

Amount of Loan & Collateral

Loan of upto Rs.7 crores can be sanctioned under the SBI medical equipment financing scheme as term loan or drop line overdraft facility. The assets created from the loan will be hypothecated as primary security. In addition, collateral security must be provided by the promoters. In case of loan of less than Rs.50 lakhs, the loan can be sanctioned without collateral under the CGTMSE scheme. In case of loan of upto Rs.1 crore, collateral of upto 15% of loan amount must be provided. For loan of Rs.1 crore to Rs.5 crore, collateral of minimum of 20% must be provided. For loan of Rs.5 crore to Rs.7 crore, collateral with a value of minimum of 25% of loan amount must be provided.

Interest Rate

For loan of less than Rs.50 lakhs, sanctioned under the CGTMSE scheme, interest of base rate + 1.5% is charged. In addition, CGTMSE cover charges would be applicable. For loan of above Rs.50 lakhs, interest is charged at base rate + 1.25% – 2.5% based on borrower profile. Base rate of SBI at the time of writing of this article was 9.3%.

Loan Repayment

The SBI medical equipment financing scheme loan can be repaid over a period of 3 to 7 years including a moratorium of maximum of 6 months. Drop line overdraft limits are sanctioned for a period of 12 months to 84 months with either equated reduction in limit or customised reduction in limit, depending on cash flow of the borrower.

In case of pre-payment of loan from internal accrual or own funds, there are no prepayment penalties. In any other case, prepayment penalty is applicable. In case of prepayment in first year – 2% penalty, second year – 1.5% penalty, third year – 1% penalty and after fourth year – no penalty is applicable.