Medico Loans for Buying Property


Are you a medical professional or a doctor? Are you planning to set up a hospital or a clinic? If your answer to these questions is a yes, then medico loans offered by banks might be of great help to you. As a medical professional, you can use the loan amount for buying a movable or immovable property. Read on to know more about the features of medico loans.

Purposes for which medico loans can be used

You can use the medico loans for various purposes as follows:

  • For acquiring a property on ownership basis for running a clinic, nursing home, pathology laboratory, or drug store subject to meeting compliance requirements as specified under laws of the central government and/or the concerned state government.
  • For buying equipment, dental implant machinery, equipment or machinery needed for various joint replacements using implants for hip, knee, shoulder, spine, etc.
  • For purchasing standard-make professional tools, medical equipment, ambulance, computers, software, furniture and fixtures, UPS, etc.
  • For the expansion, renovation, or modernization of your existing premises

Maximum loan amount and eligibility

The maximum amount provided as a loan is likely to vary between lenders. However, it can be as high as Rs. 2 crores. Some banks design it as a composite loan product and include and overdraft or cash credit facility of Rs. 5 lakhs to help you purchase the initial stock of medicines, pay salaries, and meet other expenses.

The loan amount sanctioned will depend on your repayment capacity, debt service coverage ratio (must be above 1.5), and the margin amount.

You are eligible to apply for a medico loan irrespective of whether you are a fresh or an experienced medical professional. Partnership firms, private limited companies, and trusts can also apply for medico loans, but the partners, directors, and trustees must be qualified and registered medical professionals.

Further, you, applicant or promoter, should have a degree certificate in any field of medical science such as MBBS, BAMS, BDS, BHMS, physiotherapy, pharmacy, radiology, and pathology, among many others.

Loan tenure and repayment terms

If you obtain a medico loan for the purpose of purchasing an immovable property for housing your clinic, hospital, or laboratory, banks often allow you to repay the amount in as many as 120 monthly installments. The tenure includes the moratorium period as well.

If you are obtaining a loan for any other purpose listed above, you get a maximum of 84 months (including the moratorium period) to repay the amount.

The maximum moratorium period allowable is decided on the basis of the merits of each project.


As the top loan consultant in India, Finwizz offers a variety of loan options for you to choose from. This is possible only because the company has successfully built strong bonds with some of the premier institutions in the financial sector. The loan professionals Finwizz have the expertise and experience to provide the best financial solutions for medical professionals and doctors irrespective of your area of specialization.

AUTHOR: Sini Mathew
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