Bridge the wait for insurers to pay.
Cash credit and overdraft limits for hospitals, nursing homes, diagnostic centres and clinics — sized on the receivables that insurers, TPAs and government health schemes take 60 to 120 days to settle, while your salaries and consumables are monthly.
Why healthcare working capital is structurally tight
A hospital collects from four quite different payers on four different timelines. Cash patients pay at discharge. Insurers and TPAs settle on 45–90 days after a claims process that routinely queries and part-rejects. Government schemes including Ayushman Bharat and state programmes run longer still. Corporate panels sit somewhere in between.
Against that, the cost base is relentlessly monthly: consultant payouts, nursing and technical salaries, pharmacy and consumables purchases, power, and equipment AMC. The gap between the two is not a temporary problem to be managed — it is a permanent structural feature of the business, and it is what the limit exists to fund.
Claim denials and part-payments make the receivable book softer than it looks. A hospital showing ₹4 Cr of insurer receivables may realise materially less after deductions, and lenders discount for that in computing drawing power. Clean coding, complete documentation and disciplined claim follow-up therefore translate directly into available finance.
Indicative pricing in 2026
Established facilities with audited financials and clean conduct price best. Collateral or CGTMSE cover reduces the rate further.
Public Sector Banks
Tier-1 Private Banks
NBFCs & HFCs
Getting more out of a healthcare limit
Claim discipline is drawing power
Receivables beyond ninety days are generally excluded from drawing power, and denied or part-paid claims are discounted. A hospital with rigorous documentation, clean coding and active claim follow-up borrows meaningfully more against the same revenue than one with a large stale claim book.
Ask for the limit before commissioning, not after
New hospitals routinely arrange capex finance and leave working capital until the squeeze arrives in the second or third quarter. At that point you are negotiating from weakness with no operating history. Sanction the limit as part of the original project structure.
Do not fund monthly costs with a term loan
Salaries and consumables are recurring and variable. Paying interest on a fully-drawn term loan to cover them is expensive; a CC or OD limit charges only on what you draw and repays automatically as collections arrive. Reserve term loans for 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
Facility & operations
- Clinical establishment registration and licences
- Insurer, TPA and scheme empanelment letters
- Receivable ageing report by payer
- Pharmacy and consumables stock statement
- Bed count, occupancy and revenue data by payer mix
Financials
- 3 years ITR with computation of income
- Audited balance sheet, P&L and schedules
- 12 months' bank statements of all operating accounts
- GST returns for the last 12 months, where registered
- Existing loan sanction letters and repayment track
Related facilities & deep-dive guides
Every facility below is placed through the same 80+ lender panel. The long-form guides carry the working numbers, worked examples and lender-by-lender detail.
Frequently Asked Questions
The questions our advisory desk is asked most often about Healthcare Working Capital.
The lender computes the gap between your current assets — insurer and scheme receivables plus pharmacy and consumables stock — and your current liabilities, then funds a share of it after retaining a margin of typically 25 to 40%.
Receivables beyond ninety days are usually excluded, which is why ageing discipline directly determines the size of the facility you can actually use.
Yes, most lenders fund them, though generally at a higher margin than private insurer receivables because settlement cycles are longer and less predictable.
Bring your empanelment letters, claim submission and settlement history. A demonstrated track record of scheme collections does a great deal to improve how these receivables are treated.
Yes, and it is the most common omission in healthcare project finance. A new facility has salaries, consumables and pharmacy stock from day one and no settled receivables for months.
Sanctioning the limit as part of the original project facility is far easier than approaching lenders mid-squeeze with no operating history and stressed cash flow.
Yes, at a smaller scale. A clinic with insurer or corporate panel receivables and documented banked collections can support an overdraft limit; a pure cash-payment practice has less of a receivable base to lend against.
For smaller practices a professional loan or a CGTMSE-backed facility is sometimes the more practical route.
Because drawing power is recalculated monthly from the statements you submit. Ageing receivables slipping past ninety days, a fall in stock, or rising creditors will all reduce it without any change to the sanctioned limit.
Submitting accurate statements on time and actively clearing the stale claim book is the most reliable way to keep the full facility available.
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