How a Loan Against Property Helped Dr. Alat Build VMAC Hospital?

Dr. Venkat Mahadev Alat is a dedicated doctor born in Chincholi, Latur district. He runs VMAC Hospital in Navi Mumbai, a facility he established to make quality medical services accessible to lower-income groups. 

Building this hospital was a dream he pursued with passion, but bringing it to life required substantial financial support. To secure the necessary funds, he chose to take out a loan against property. This decision was pivotal in turning his vision into reality. 

In this article, we explore how a loan against property played a crucial role in Dr. Venkat’s journey. But first, let’s understand what a loan against property entails.

What is a Loan Against Property?

A loan against property (LAP) is a secured loan where individuals pledge their residential or commercial property as collateral. The loan amount depends on the property’s market value, providing a substantial sum at competitive interest rates. LAP offers flexible repayment options, making it an attractive financing option for significant expenses like education, medical emergencies, or, in Dr. Venkat’s case, establishing a hospital.

Who is Dr. Venkat Mahadev Alat?

Dr. Venkat Mahadev Alat hails from Chincholi in Latur district. Despite his humble beginnings, with his parents being farmers, he pursued his passion for medicine, completing his post-graduation in pediatrics in Latur. His journey was filled with challenges, especially given his non-medical family background and the financial constraints they faced.

After moving to Navi Mumbai, Dr. Venkat noticed a critical shortage of doctors and the lack of government hospitals in the area. Recognising the difficulty low-income families faced in affording private healthcare, he decided to establish VMAC Hospital Private Limited to bridge this gap.

How Did a Loan Against Property Help Dr. Venkat Mahadev?

Building VMAC Hospital was a formidable task for Dr. Venkat. The high real estate costs in Mumbai and the need for essential medical equipment and machinery posed significant challenges. To overcome these obstacles, he sought financial assistance from Tata Capital. He secured a loan against property at a reasonable interest rate, which provided the necessary funds to purchase medical equipment, machinery, and other essential items to build the hospital.

Today, VMAC Hospital admits around 25-30 patients per month and treats approximately 15-20 patients daily on an outpatient basis. Dr. Venkat’s goal is to offer medical treatment to patients from all backgrounds, ensuring affordable care without compromising quality.

What are the Advantages of a Loan Against Property?

Here are a few advantages of securing a loan against property:

1. Competitive interest rates: Loans against property typically come with lower interest rates compared to unsecured loans.
2. Wide range of collaterals accepted: Borrowers can secure a loan against various types of properties, including residential, commercial, land, plot, and industrial properties.
3. Longer repayment tenure: LAP loans come with a tenure of up to 15 years, allowing you to repay the loan comfortably over a longer period.
4. Loan against property overdraft facility: Some lenders offer a loan against property overdraft facility to help you meet financial emergencies with ease.

What is the Eligibility Criteria to Apply for a LAP Loan?

To apply for a loan against property, applicants need to meet specific eligibility criteria:

1. Salaried employees must work in an MNC, Public Ltd. Co., Large Pvt. Ltd. Co., State Govt., Central Govt., or PSU.
2. The applicant must be between 23 and 65 years old at the time of loan maturity. For self-employed individuals, the maximum age is 70 years.
3. The minimum income for salaried employees is Rs. 2,40,000, per annum while for self-employed individuals it is Rs. 2,50,000 per annum.
4. A minimum of 3 years of occupational stability is required.

Final thoughts

Dr. Venkat Mahadev Alat’s journey from a small village in Latur to running a successful hospital in Navi Mumbai is truly inspiring. By securing a loan against property, he fulfilled his vision of making healthcare accessible to all.

If you want to expand your business, renovate your property, or require capital to meet working capital needs, consider Tata Capital’s Loan Against Property. We offer LAP loans with high loan amounts, flexible repayment tenure, and attractive interest rates so that you can achieve your goals just like Dr. Venkat Mahadev Alat.

Visit the Tata Capital website or download the Tata Capital App to apply for a loan against property!