Build the hospital — funded as it goes up.
Project finance for nursing homes, multi-speciality hospitals, day-care surgical centres and operation theatre complexes. Land, civil work, services, modular OT and medical gas assessed as one project, drawn in tranches with a moratorium through the build.
How a hospital project is appraised
Hospital lending is cash-flow lending secured on property, not property lending that happens to be a hospital. Credit teams model bed count, expected occupancy, average revenue per occupied bed day, payer mix between cash, insurance and government schemes, and the ramp-up period before the unit stabilises.
Ramp-up is where projections most often break. A new hospital rarely reaches sustainable occupancy inside eighteen to thirty months, and empanelment with insurers and with Ayushman Bharat or state health schemes takes its own time. A projection that shows 70% occupancy in year one signals inexperience and invites a heavier haircut on the whole file.
The promoter matters as much as the plan. A file led by practising clinicians with a track record at an existing facility is underwritten quite differently from a purely financial promoter group. Where the promoters are doctors who will themselves generate the referral base, lenders extend better terms — that clinical anchor is a genuine credit strength.
Indicative pricing in 2026
Healthcare infrastructure is a priority sector for most lenders. Clinician-promoted projects with realistic projections attract the sharpest terms.
Public Sector Banks
Tier-1 Private Banks
NBFCs & HFCs
Where hospital projects run into trouble
Equipment planned after the building is funded
A completed shell with no CT scanner earns nothing. Yet files are routinely arranged property-first, and by the time equipment is needed the promoters' servicing capacity is already committed. Building and equipment must be sized together, with the equipment tranche timed to precede commissioning, not follow it.
Statutory clearances underestimated
Clinical establishment registration, fire safety clearance for a healthcare occupancy, AERB licence for any radiology installation, biomedical waste authorisation, pollution consent, and lift and DG approvals. Each has its own timeline, several are pre-disbursal conditions, and AERB approval for imaging in particular cannot be compressed.
Working capital forgotten entirely
A hospital carries substantial receivables from insurers and government schemes, often 60–120 days, alongside consumables and pharmacy stock. A project funded only for capex opens with no cushion and strains immediately. The working capital limit should be sanctioned before the doors open.
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
Professional credentials
- MBBS / BDS / BAMS / BHMS degree & PG certificates
- State Medical Council registration certificate
- Clinical establishment registration
- Practice or employment proof, appointment letters
- Experience certificate showing years post-qualification
Project papers
- Detailed project report with bed-wise revenue projections
- Title deed, mutation, land-use conversion and sanctioned plan
- Architect-certified cost estimate and BOQ
- Equipment quotations and phasing plan
- Clinical establishment registration, fire NOC, AERB, biomedical waste consent
- Consultant panel profile and empanelment status with insurers
Project finance sequence
Project report and DSCR modelling
Bed count, occupancy ramp, payer mix and consultant panel built into a projection a credit team will accept — not an optimistic one.
Capex, equipment and working capital sized together
All three components modelled as one requirement, so nothing is stranded halfway.
Sanction with drawdown and moratorium
Tranches mapped to construction milestones; moratorium set to completion plus a realistic ramp-up buffer.
Certified drawdowns to commissioning
Surveyor-certified releases, equipment tranche timed to installation, and conversion to term loan on commissioning.
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 Hospital Construction & OT Setup.
Typically 60–75% of appraised project cost, with land funded at a lower percentage and equipment often carried as a separate facility at 70–85%.
Promoter contribution of 25–40% is expected, and land you already own free of encumbrance counts towards it — which materially reduces the fresh cash needed at the start.
No. Through the moratorium you service interest only, on the drawn amount. Principal begins after the moratorium.
Insist that the moratorium covers construction plus a genuine ramp-up period. A new hospital does not reach sustainable occupancy immediately, and EMIs starting at commissioning rather than at stabilisation is the most common cause of early stress on these projects.
Something a credit team will believe. New units generally take eighteen to thirty months to reach stable occupancy, and insurer and government scheme empanelment adds its own lag.
Projections showing high occupancy from month one are read as a sign the promoters have not run a facility before, and invite a larger haircut across the whole appraisal. Conservative, well-reasoned numbers get better outcomes.
Clinical establishment registration under the applicable state Act, fire safety clearance for healthcare occupancy, biomedical waste authorisation and pollution consent, plus building plan sanction and land-use conversion.
Any radiology installation needs AERB licensing, which has its own timeline and cannot be rushed. Start that process well before you expect to commission the imaging suite.
Yes, and expansion is easier to underwrite than a greenfield project, because you have an actual operating history to point at. Existing occupancy, revenue per bed and payer mix replace projections.
Where the existing property is unencumbered, a mortgage against it combined with a construction facility is often the cheapest structure for the expansion.
Tell us what you need. We'll do the running around.
Share a few details and a CreditCares expert will call you back to map your eligibility and shortlist the right lenders — at no cost.