2 min read
25 May 2021

Buying modern machinery, hiring qualified staff, paying vendors on time, and deploying technology to improve the operational efficiency of your clinic can put significant pressure on your finances.

What happens when you are in sudden need of cash and don't have the time to undergo the lending norms laid by banks? In such a scenario, flexi loans are your best bet. Read on to know how these loans can help your medical practice:

1. Buy Medical Equipment

Modern and upgraded equipment helps you in your endeavour to give the best possible care to your patients. However, you may run short of cash to buy a piece of equipment because of its hefty price. In such a scenario, flexi loans help you with the required capital to buy it. Suppose you urgently need to install a CT scan machine in your clinic, which typically costs around Rs. 25 to 45 lakh, depending on the specifications. Bajaj Finance offers loans for doctors of up to Rs. 75 lakh that can help you with purchase of medical equipment. The Flexi Loan facility allows you to withdraw money multiple times from your assigned loan limit.

2. Expand to new markets

If your current space, where you are running your practice, is not enough to handle the influx of patients, causing them inconvenience, you will need a bigger space to provide a comfortable experience to your patients. Expansion is easier said than done and a new set up warrants huge investments in the form of:

  • Exploring untapped regions
  • Paying for the new space
  • Hiring new employees
  • Setting up the required infrastructure
  • Regulatory compliance
  • Buying equipment
  • Accounting and legal expenses

It’s difficult to accurately anticipate the cost required to expand. In such a case, flexi loans come in handy as you can make multiple withdrawals within your sanctioned loan limit. Thus, you are never short of funds during expansion. Also, these loans charge interest on the money used and not on the entire amount borrowed. Thus, it brings down your monthly EMIs, thus helping you save capital to deploy in other areas of business.

3. Address Cash-Crunch Due to Late Settlement of Mediclaim

Late settlement of mediclaim can put pressure on your working capital and hamper your day-to-day expenses such as paying vendors, employee payment, paying for utilities and clinic maintenance, etc.

Flexi loans offers you immediate cash to address your working capital needs. There’s no need for multiple applications for doing so. Once sanctioned, you can withdraw money as per your needs and repay as you have excess funds.

4. Purchase a Modern Ambulance

Having an ambulance with modern features, such as auxiliary heating and air-conditioning, folder stretcher cum trolley, ventilator monitor, section machine, etc. is the need of the hour. Keeping an advanced life support ambulance on the premises of your clinic can save a patient’s life. These ambulances can cost you approximately Rs. 20 lakh.

5. Invest in Cyber Security Solutions

The health care industry is increasingly being targeted by cyber criminals and loss of critical patient data can lead to identity theft and medical fraud. Hence, you need to invest in robust cyber security solutions to protect your clinic and patients from falling prey to cyber criminals. The upfront cost of deploying cyber security solutions can cost you Rs. 4 to 5 lakh and the running cost for the same can be Rs. 2 lakh per year.

6. Maintain and Repair Equipment

Keeping your equipment in top condition is of paramount importance. A breakdown in the functioning of critical equipment hampers your practice, putting life of patients at risk. Repairing critical medical equipment such as an MRI machine can go as high as Rs.51 lakh. Also, such a machine needs to be repaired within a short span of time. Flexi loans give you the required capital within a short time period that you can use for a host of purposes.

Flexi Loans v/s Term Loans

The question is why you should go for a flexi loan instead of term loan? The table below will give you the answer.

  Flexi Loan Term Loan
Amount given A pre-approved loan limit A fixed lump-sum
Interest charged Only on the funds used On the whole loan amount, irrespective of usage
EMIs Option to pay only interest, with principal payable at the end of the tenor=> Smaller EMIs Interest + Principal=> Greater EMIs
EMI Savings High (Saves you upto 45% on Term Loans) Low
Withdrawal Option As and when you want Not available; in case additional funds are needed, you can opt for a top-up loan

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