How to set up a hospital with a doctor loan

Planning a hospital setup? Bajaj Finserv Doctor Loan offers simple steps, low rates and fast approval to support your dream.
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Doctor Loan
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5 min read
17 July 2023

Step-by-step process to set up a hospital with doctor loan

Here’s a detailed guide on how to set up a hospital with a doctor loan:

Step 1: Conduct feasibility study

Start by evaluating the demand for healthcare services in your target location. Assess the area's population, existing healthcare infrastructure, income levels, and potential gaps in medical services. This helps determine the scope, size, and specialty of the hospital.

Step 2: Define your hospital's scope and services

Based on your research, finalise the type of hospital, multi-speciality, super-speciality, or a general care facility. Outline the services you’ll offer such as OPD, diagnostics, emergency care, surgeries, and inpatient departments.

Step 3: Prepare a business plan and secure approvals

Draft a detailed business plan covering funding, location, design, staff, equipment, and operational costs. Simultaneously, apply for the necessary licences and approvals such as Clinical Establishment Act registration, Pollution Control Board clearance, and Fire Safety Certificate.

Step 4: Arrange financing through hospital loans

To fund land purchase, construction, equipment, and operational setup, explore tailored financing options like hospital loans. These loans can help cover costs of setting up infrastructure, acquiring diagnostic tools, and managing early-stage expenses.

Step 5: Select location and begin construction

Choose a centrally located and accessible site. Ensure it complies with local zoning laws and healthcare regulations. Hire contractors and architects experienced in medical infrastructure and begin construction in phases.

Step 6: Procure medical equipment and set up departments

Purchase high-quality, standard-compliant medical and diagnostic equipment. Set up departments like pharmacy, pathology, radiology, ICU, OT, and general wards, depending on your service scope.

Step 7: Hire medical and administrative staff

Recruit skilled doctors, nurses, paramedical staff, and support personnel. Establish HR policies, roles, training schedules, and duty rosters to ensure smooth day-to-day functioning.

Step 8: Implement digital and operational systems

Install hospital management software to handle patient records, billing, pharmacy, and appointments. Set up IT infrastructure and ensure compliance with data protection and digital health norms.

Step 9: Market your hospital services

Create awareness about your hospital through digital marketing, local advertising, tie-ups with insurance providers, and community health camps. A strong launch campaign can help drive initial patient footfall.

Step 10: Start operations and ensure quality control

Once ready, launch services gradually while ensuring adherence to quality benchmarks. Implement standard operating procedures (SOPs), patient feedback systems, and periodic audits for continuous improvement.

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Eligibility criteria for a doctor loan to set up a hospital

To secure financing for hospital setup, you must meet specific criteria. These ensure that only qualified medical professionals with relevant experience can access high-value loans. Here’s what typically applies:

  • Nationality: You must be an Indian citizen residing in India.
  • Qualification: You must hold an MBBS, BDS, or postgraduate medical degree from a recognised institution.
  • Medical Registration: A valid medical registration with the Medical Council of India (MCI) or State Medical Council is required.
  • Professional Experience: A minimum number of years in medical practice is often required (varies by lender and loan amount).
  • Age Requirement: Generally, applicants should be between 25 and 65 years of age at the time of loan maturity.
  • Credit Score: A CIBIL score of 685 or higher is typically preferred for favourable terms.

For a more detailed overview, including document requirements, you can check the complete doctor loan eligibility criteria.

Documents required for a doctor loan to set up a hospital

When applying for a doctor loan to establish a hospital, ensure you have the necessary documents ready. This helps speed up the approval process and avoids unnecessary delays.

  • KYC documents: Aadhaar card, PAN card, passport, voter ID, or driving licence.
  • Medical registration certificate: Valid proof of registration with the Medical Council of India or the respective state council.
  • Proof of qualifications: Degree certificates such as MBBS, BDS, MD, MS, or other postgraduate medical degrees.
  • Business ownership proof: For doctors already running clinics or other healthcare setups.
  • Financial documents: Bank statements for the past six months, ITRs for the last 2-3 years, and income proof.
  • Photographs: Recent passport-sized photographs.

These documents are typically required during the verification and sanction stage of a doctor loan application.

Doctor loan interest rates to finance your hospital setup

The cost of borrowing is a crucial factor when planning a hospital setup. Understanding the applicable charges helps you plan better.

  • Interest rates: Bajaj Finserv offers competitive doctor loan interest rates, starting from 14% p.a., depending on your profile and creditworthiness.
  • Processing fees: These may range between 2-3% of the loan amount.
  • No part-prepayment charges: Especially on Flexi variants, allowing you to repay early without penalties.
  • Other charges: Include bounce charges, penal interest for delays, and documentation charges.

Use the doctor loan EMI calculator to estimate your monthly outgo and plan repayments smartly.

Benefits of Bajaj Finserv Doctor Loans to set up a hospital

Opting for a Bajaj Finserv Doctor Loan provides medical professionals with access to tailored financing solutions that align with their clinical goals. Here are some key benefits:

  • Loan amount of up to Rs.80 lakh: Choose the amount you need, from Rs.2 lakh to Rs.80 lakh, based on the scale of your hospital setup.
  • Multiple loan variants: Select from Term Loan, Flexi Term Loan, or Flexi Hybrid Loan for greater convenience and repayment flexibility.
  • No collateral required: You can secure funding without pledging any personal or business assets.
  • Quick disbursal: Funds are typically credited within 48 hours of approval, enabling faster project execution.
  • Digital application process: Apply from anywhere, at any time, with minimal documentation and no in-person visits.

Explore more about the full features of doctor loan to understand how it supports your hospital-building journey.

How to apply for a doctor loan to finance your hospital setup

Applying for a Bajaj Finserv Doctor Loan is a straightforward online process. Follow these steps to begin:

  • Step 1: Visit the doctor loan page and click on the ‘Apply’ button.
  • Step 2: Enter your basic details such as mobile number and verify with the OTP.
  • Step 3: Fill in the application form with your name, PAN, date of birth, and PIN code.
  • Step 4: Select your preferred loan variant and the amount needed for your hospital setup.
  • Step 5: Choose a repayment tenure between 12 and 96 months.
  • Step 6: Submit the required documents for verification.

Once verified, the loan amount will be transferred to your account. This professional loan is structured to meet the financial demands of setting up or expanding a medical practice.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

What is the maximum loan amount Bajaj Finserv offers for hospital setup?

Bajaj Finserv offers doctor loans of up to ₹80 lakh to help finance hospital setup, including infrastructure, equipment, and operational expenses.

Can I use a doctor loan to buy medical equipment for my new hospital?

Yes, the loan can be used for a range of expenses including medical equipment finance. This allows you to invest in diagnostic tools, surgical equipment, or other hospital infrastructure.

How long does it take to get approval for a hospital setup loan?

In most cases, you can expect loan approval within 48 hours of successful document verification and eligibility check.

What interest rates apply to doctor loans for hospital setup?

Interest rates for Bajaj Finserv Doctor Loans vary based on your profile, loan amount, and tenure. You can check the most updated doctor loan interest rates online before applying.

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