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Since 2012 · Godrej Waterside, Kolkata ₹2,000 Cr+ disbursed · 4.9★ on Google
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CreditCares CreditCaresBusiness Finance

Structured finance for healthcare at portfolio scale.

Large-ticket facilities for hospital groups and healthcare platforms: multi-city rollouts, acquisition of existing units, brownfield expansion across a portfolio, and consolidation of legacy debt into a single structured facility.

CreditCares is a loan consultancy / DSA — not a bank or NBFC. Rate bands below are indicative for mid-2026; final sanction, pricing and LTV always rest with the lending institution.
9.25–12.75%Interest p.a. (indicative)
₹10Cr–₹100CrTypical ticket size
Up to 15 yrsTenure
1.30–1.75xDSCR covenant range
The mechanics

Portfolio lending, not single-asset lending

Once a group operates more than one facility, the appraisal changes character. Lenders assess consolidated cash flow across units, cross-collateralise the security, and lend against the portfolio rather than against any single hospital. Mature units subsidise the ramp-up of new ones, which is precisely what makes a chain a better credit than a standalone greenfield project.

These facilities are covenant-driven. Expect a minimum DSCR, a debt-to-EBITDA ceiling, restrictions on further indebtedness and on distributions, and financial reporting obligations on a quarterly basis. Negotiating headroom into those covenants at sanction is far more valuable than shaving a few basis points off the rate, because a breach can trigger consequences a rate never will.

Structure often matters more than pricing at this size. A single facility with staged availability across a rollout, a holding-company structure with unit-level security, sale-and-leaseback of stabilised property assets to release capital, or a combination of term debt with lease rental discounting on leased units — the right architecture can be worth considerably more than the coupon.

What large healthcare facilities are assessed on
Consolidated EBITDA across operating unitsPrimary basis
DSCR covenant on consolidated debt1.30–1.75x
Occupancy and ARPOB trend by unitOperating quality
Payer mix concentrationCash flow risk
Security — cross-collateralised property and receivablesStandard
Promoter and management depthWeighted heavily

Indicative pricing in 2026

At this size, pricing is negotiated rather than quoted. The bands below reflect what established groups with audited consolidated financials have been achieving.

Public Sector Banks

SBI · PNB · BOB · Union · Canara
Established group, 3+ units9.25–10.75%
Single-unit expansion9.75–11.50%

Tier-1 Private Banks

HDFC · ICICI · Axis · Kotak · IndusInd
Established group, 3+ units9.50–11.00%
Single-unit expansion10.00–11.90%

NBFCs & structured lenders

Broader eligibility, faster turnaround
Established group, 3+ units10.75–12.25%
Single-unit expansion11.25–12.75%
Insider insight

Negotiating a large healthcare facility

01

Covenant headroom over headline rate

On a ₹50 Cr facility, twenty-five basis points is real money but a DSCR covenant set with no cushion is an existential issue. Occupancy dips, a delayed scheme settlement or one slow quarter can breach a tight covenant and hand the lender remedies you never intended to give. Negotiate the cushion first.

02

Staged availability instead of full drawdown

A rollout does not need all the money on day one, and undrawn debt costs a commitment fee rather than full interest. Structuring availability against unit milestones reduces carry cost materially over a two to three year programme.

03

Release capital from stabilised assets

A group with mature, unencumbered hospital property is sitting on locked capital. Sale-and-leaseback, or a mortgage against stabilised units to fund new ones, is frequently cheaper than raising fresh project debt against unproven assets.

Documents required

Incomplete files cause most multi-week delays. We assemble the full set upfront, in the order credit teams read it.

KYC & constitution

  • PAN & Aadhaar of all promoters / partners / directors
  • Certificate of incorporation, MOA-AOA or partnership deed
  • Board resolution or partners' authority letter
  • GST registration & trade licence

Group & portfolio

  • Consolidated audited financials for 3 years, all entities
  • Unit-wise operating data — beds, occupancy, ARPOB, payer mix
  • Group structure chart and shareholding pattern
  • Existing debt schedule across all entities with security details
  • Board-approved business plan and rollout programme

Assets & compliance

  • Title documents for all owned property; lease deeds for leased units
  • Clinical establishment registrations and licences for each unit
  • AERB, biomedical waste and fire clearances per unit
  • Insurer and scheme empanelment across the portfolio
  • Valuation reports for property and major equipment
How it runs

How a structured healthcare facility comes together

01

Consolidated financial model

Unit-level and consolidated projections, DSCR under base and stress cases, and the debt capacity the portfolio genuinely supports.

02

Structure design

Term debt, staged availability, working capital, LRD on leased units and any sale-and-leaseback element designed as one architecture.

03

Lender syndicate and term sheets

Approached in parallel; term sheets compared on covenants, security and flexibility, not only on rate.

04

Documentation and drawdown

Security creation across entities, covenant definitions negotiated, and disbursal against agreed milestones.

Healthcare Infrastructure Loan FAQs

Frequently Asked Questions

The questions our advisory desk is asked most often about Healthcare Infrastructure Loan.

Broadly beyond ₹10–15 Cr, or once a group runs multiple units. Below that, facilities are largely standardised; above it, appraisal moves to consolidated cash flow, cross-collateralised security and negotiated covenants.

The practical difference is that terms become negotiable across structure, security and covenants rather than being taken off a product sheet.

Lenders typically ask for a minimum DSCR of 1.30 to 1.75x on consolidated debt, tested quarterly or annually.

What matters more than the number is the cushion between it and your base-case projection. A covenant set right at your projected DSCR leaves no room for a slow quarter, and breach consequences are far more damaging than a slightly higher rate.

Yes, and it is often the main reason groups approach this market. Multiple facilities across entities at legacy rates, with fragmented security and mismatched tenures, can be refinanced into a single structured facility.

The gains are usually a lower blended rate, a longer tenure, released security and simpler covenant management. The costs are fresh stamp duty and any exit charges, which we model before recommending it.

It can release substantial capital from stabilised assets without diluting equity, and for groups whose property is unencumbered and mature it is worth evaluating seriously.

The trade-off is a long-term rent obligation replacing an owned asset, and the loss of future appreciation. Whether it beats a straightforward mortgage depends on the rent, the term and your view on the property.

Realistically two to four months from a complete information pack, longer where a syndicate is involved or where security spans multiple entities and states.

The pace is usually set by documentation quality. Groups arriving with clean consolidated financials, a clear structure chart and an accurate existing-debt schedule close materially faster.

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