To bridge the gap between demand for quality treatment and availability of it, doctors cannot always depend on hospitals. Especially when for every 10,000 Indians, just 5 hospital beds are available. In such cases, professionals need to spend substantially on setting up clinics to cater to more patients. Depending on the treatment they provide, doctors also have to spend on buying advanced medical equipment, hiring staff, etc.
To address these expenses without any difficulty, a doctor loan can be a suitable choice. Almost all financial institutions offer such loans for doctors with borrower-friendly features. However, to make the most of this credit product, doctors need to know its advantages before applying.
Advantages of a doctor loan
A doctor loan allows professionals to renovate and expand a clinic, introduce telemedicine, teleconsultation and other remote treatment facilities. It enables them to reach more patients within a short time. Besides, this borrowing option also accompanies a host of benefits that doctors need to know.
- Substantial loan value
Medical practitioners need to invest regularly in their practice to ensure it runs smoothly. Hence, they need sufficient working capital to buy equipment that can cater to patients with different needs. For instance, the dental chair and hand equipment in India can cost between Rs.2 lakh and Rs.10 lakh.
However, with a loan for a doctor, it becomes easier to finance these expenses. Select financial institutions offer collateral-free advances of substantial amount for doctors to fund any professional requirement. They can utilise the funds to scale their practice, incorporate the latest technologies, hire helpers, etc.
- Affordable interest rates
The doctor loan rates depend on various factors like:
- Monthly income
- CIBIL score
- Loan amount
Top NBFCs like Bajaj Finserv offer doctor loans at competitive interest rates. They also provide a Flexi loan facility, which helps reduce the EMI burden to a great extent. A Flexi loan for doctors comes with a pre-sanctioned limit from which borrowers can withdraw any amount as and when required. They have to pay interest only on the fund utilised and not on the whole corpus.
Hence, Flexi loan can help doctors take their medical practice to the next level without burdening finances.
- Simple eligibility criteria
The eligibility parameters of a doctor loan are easy to meet. Depending on the degrees they hold, lenders determine the loan amount. To avail a sizeable loan amount, doctors have to meet the requisites below.
- MBBS certificate registered with the medical council for postgraduate I and II, super-specialist I and II, specialised diploma and other postgraduate diploma doctors.
- MBBS doctors must have a post-registration with the medical council.
- BHMS/BAMS doctors should have a minimum of 2 years of experience.
- Dentist/MDS doctors must have experience of 5 years.
Besides fulfilling the eligibility parameters, doctors also have to submit a handful of documents. It includes:
- KYC documents
- Medical registration certificate
- Bank account statement
To avail a loan at better interest rates and service terms, doctors can increase their CIBIL score, keep the credit utilisation ratio below 40%, etc.
- Convenient repayment options
Depending on the repayment capacity, doctors can also choose a tenor of up to 96 months and repay the loan without a significant financial burden. However, they should also use an online EMI calculator to estimate their monthly instalments and overall cost of borrowing. However, note that the longer tenor reduces EMIs but increases the total interest outgo and vice versa. Using an EMI calculator prior to applying for the loan is thus quite important.
Moreover, to clear the doctor loan faster, borrowers can also make part-prepayments as and when possible and foreclose the loan without paying any additional fees. So, opt for NBFCs who do not levy extra charges for loan foreclosure and prepayment.
- Easy approval and disbursal
Doctors are always on the go with emergency calls, surgeries, etc. Moreover, setting up a proper facility for treatment needs to complete immediately. A doctor loan also helps in this front with fast loan approval and disbursal. The sanctioned loan amount reaches the individual’s account within 24 hours* of loan approval. It allows them to start using the funds without any waiting period.
Select NBFCs also bring pre-approved offers that expedite and simplify the loan availing process. Such offers are available on a range of financial products like business loans, personal loans, etc. All you have to do is enter your name and mobile number to check your pre-approved offer online.
These are some of the best features and advantages of availing a doctor loan in India. Moreover, with this fund, doctors can also finance their higher studies, medical tourism, etc., without liquidating their savings. Although the Union Budget 2021 announced the increase in healthcare spending by 135% since last year, public healthcare is yet to reach its full potential. Doctor financing is probably the most potent solution to this increasing doctor-patient gap.