Healthcare professionals, such as doctors, require financial assistance to expand their practice or purchase the latest equipment. Many banks and non-banking financial companies (NBFCs) offer personalised business loans tailored for professionals. Understand what is required to apply for a loan for doctors and the factors one must take into consideration to obtain the financial assistance they need.
Features and Benefits of a Loan for Doctors
Here are the features and benefits you need to know about loans for professionals like doctors and how they can support their professional growth:
Competitive Interest Rates
Benefit from attractive interest rates based on your credit profile and financial history.
Flexible Repayment Tenure
Choose a repayment period that aligns with your financial situation and cash flow needs.
Simple Eligibility and Minimal Documentation
Apply easily with basic documentation and simple eligibility criteria.
Quick and Hassle-free Application
Enjoy a smooth digital application process with instant approvals and minimal paperwork.
Quick Loan Disbursement
Receive funds quickly to meet urgent financial requirements without unnecessary delays.
No Collateral Required
Get an unsecured loan without the need to pledge any assets or security.
Customised Loan Options
Use the loan for various professional needs, such as upgrades to the clinic, equipment purchases, or operational expenses.
Prepayment and Online Loan Management
Make prepayments when convenient and manage your loan online with ease.
Eligibility Criteria for a Loan for Professionals
The eligibility criteria may differ from one lender to another based on their terms of lending. However, before you apply, ensure that you meet these eligibility criteria to get your loan application approved quickly. Here are some of the common eligibility criteria that you need to meet:
- You must be between 20 and 70 years of age.
- You must be an Indian resident.
- You must be self-employed.
- You must hold a professional degree in either of the following fields to qualify for a loan for a doctor:
Accepted Degrees:
- PG Diploma
- MBBS
- M.Ch
- MS
- MD
- MDS
- BHMS
- BDS
- BAMS
- DNB
- DM
- DHMS
- GAMS
- Any other relevant degrees
Documents Required for a Loan for Doctors
Once you meet these eligibility criteria, you will need to submit the following documents. Ensure that you submit the correct and complete documentation to avoid any delays or the risk of rejection. Here are some of the common documents:
- Identification Proof: PAN card, Aadhaar card, or passport
- Address Proof: Aadhaar card, voter ID, or utility bills
- Income Proof: Bank statements for the past six months
- Certification: Professional degrees and corresponding diplomas
- Practice: Proof of ownership of practice or property lease to set up a practice
Calculating a Professional Loan with an EMI Calculator
A professional loan EMI calculator is a simple-to-use online tool that lets you calculate your monthly obligation with ease. Here are the steps to use an EMI calculator:
- Visit a website that offers a professional loan EMI calculator
- Enter the loan amount that you need
- Select the repayment tenure that you are comfortable with, either in months or years
- Enter the rate of interest being offered to you
- Click on Calculate
The calculator will display your monthly instalments along with your principal amount, total interest due, and total amount payable. Additionally, some calculators will even provide a detailed amortisation schedule, which you can download. These details will help you plan your finances and budget accordingly.
How to Apply for a Loan for Doctors
There are several lenders available in the market that offer loans for doctors. The process of applying for a loan is simple and straightforward. Here are the steps on how you can apply:
- Shortlist a lender that you wish to apply with for a loan for a doctor
- Navigate to the professional loan section of the website
- Upon being redirected, you will need to submit some basic details in the application form
- Choose a loan amount and a repayment tenure
- Proceed with uploading the required documentation, if any
- Submit the application form for verification
A lender's representative will get in touch with you to proceed further with the rest of the formalities.
Things to Consider Before Taking a Loan for Doctors
There are several factors to consider before applying for a loan. It is important to keep these considerations in mind for better financial planning and to make an informed decision:
Expansion
Consider how the funds can be used towards the expansion of your practice. A doctor can use the funds to add the latest medical equipment to expand their practice.
Equipment Financing
The high-value medical equipment that doctors purchase for their practice may need to be insured. Take the cost of insuring these devices into account when planning your budget before applying.
Revenue Fluctuations
The revenue that a doctor generates depends on the number of patients they attend to. This revenue can fluctuate and be lower if they attend to fewer patients, which impacts their loan repayment capability. Ensure that your loan repayment dates are aligned with your payment cycle to avoid defaulting on payments.
Types of Loans Available for Doctors
A doctor can apply for different types of loans depending on their requirements. Here are the three types of loans:
Flexi Hybrid Loan
This type of loan allows you to withdraw and repay the borrowed amount multiple times within the approved withdrawal limit. Interest-only EMIs are charged during the initial stage of the tenure and only on the amount utilised.
Flexi Term Loan
This loan type offers flexibility to borrowers and allows them to repay the loan amount within a specific loan limit. The EMI you will be paying will include both the principal and interest amounts of the amount withdrawn over the repayment tenure.
Term Loan
This loan does not have a predetermined limit and consists of a fixed amount of money that can be borrowed for a specific term. Repayment is made via EMI, which consists of both the principal and interest amounts.
