Setting up a medical college is one of the most capital-intensive ventures in the education and healthcare sector. From acquiring land and constructing academic buildings to developing hospitals, hostels, laboratories, and purchasing advanced medical equipment, the investment requirements are substantial.
We offer loans for medical colleges, which help promoters, trusts, and societies to build and develop world-class medical education infrastructure.
We also offer such loans to trusts or institutions that have credit issues in their past or present, which restrict them from obtaining loans from the conventional banking system.
What is a Loan for Medical Colleges?
A loan for medical colleges is a specialized loan offered to trusts/societies for the establishment, expansion, or modernization of medical colleges and associated teaching hospitals.
These loans are designed to fund both academic and clinical infrastructure, ensuring compliance with regulatory standards set by medical authorities.
A Medical College Loan Can Be Used For:
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- Construction of academic blocks, hospitals, hostels, and staff housing
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- Renovation of old infrastructure
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- Medical equipment and laboratory setup
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- Teaching aids, simulation labs, and libraries
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- Furniture, fixtures, and IT infrastructure
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- Pre-operative expenses and initial working capital
Who is Eligible to Apply for a Medical College Loan?
It is typically available for:
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- Educational trusts and societies
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- Private limited companies and LLPs
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- University-affiliated institutions
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- Existing medical colleges planning expansion or upgrades/renovation
Types of Loans Available for Medical Colleges
1. Project Finance Loans
For setting up a new medical college, covering construction, infrastructure, and equipment costs.
2. Expansion and Modernization Loans
For existing colleges looking to increase seats that require additional infrastructure, add new departments, or upgrade facilities.
3. Renovation Loans
A loan is provided to renovate existing old infrastructure into a new, modern & upgraded facility.
4. Equipment Financing
Separate loans for high-value medical and laboratory equipment used in teaching hospitals.
5. Loan for Medical College NPA Accounts
We offer loans to close medical college NPA accounts. We directly take over existing NPA accounts and provide additional funds also, if required. One can use this funding to pay the OTS (One-Time Settlement) of the medical college.
Some of the Key Features
Loan Amount
Starting from Rs.5 Crores to any higher amount required.
A general policy of 80:20 means a maximum of 80% can be financed, and 20% needs to be the promoter’s contribution of the total project cost.
Tenure
5 years to 15 years
Moratorium Period
Often provided during construction and initial operational years
Interest Rates
As per the market standard, it also depends upon the size and viability of the project, and the credit profile of promoters
Location
Loans for medical colleges are available all across India
Documents Required
The following documents are required for a medical college loan:
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- Detailed Project Report (DPR)
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- Land ownership or lease documents
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- Approved building plans and statutory approvals
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- Promoter KYC and financial statements
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- Affiliation and regulatory certificates
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- Cost estimates for construction and equipment
Only soft copies of all documents required to apply for this loan.
Benefits of Medical College Loans
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- Enables large-scale investment without exhausting promoter capital
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- Supports long-term infrastructure development
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- Structured repayment over extended tenure
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- Helps meet strict regulatory and accreditation standards
