Being a doctor is a noble profession, and you always want to keep your patient’s best interests in mind. You need modern medical equipment and facilities to provide the best health care service to your patients. However, it requires a lot of upfront investments, and you don’t want to stress about money. How will you finance when you have an expansion plan in mind?
A doctor loan is an excellent way to accumulate funds for growing your clinic and boosting professional growth. It is a specialized professional loan for doctors who want to expand their clinic. However, you need to do a few things before taking the loan. Here are the top things you should know before taking a professional loan for doctors.
What exactly is a doctor loan?
A doctor of physician loan is a specialized financing option for those involved in treating people. A doctor, dentist, or other physicians can avail of this loan facility to expand or renovate the current clinic, purchase medical equipment, and lab research supplies, or meet the regular expenses for your clinic. You can apply for a doctor loan if you are a self-employed professional or a salaried doctor. These are unsecured loans, just like just a personal loan, which means you don’t need to provide any collateral for availing of these loans.
5 things you must know before applying for a doctor loan
- Know your monetary requirement
Everyone takes a loan to meet various financial requirements, and it’s the same for doctors. Before taking a loan, you must know the purpose of borrowing and how much money you need. The reason can be opening a new clinic, buying medical equipment, growing your current clinic, hiring more medical staff, or something else. Besides that, you must calculate how much loan you need. Asking these questions will give you more clarity on how you will utilize the fund.
- Do you have a good credit score?
Your credit history plays a crucial role in availing a loan. A good credit score will help you get the loan easily. The better the credit score, the easier it will be for you to get a loan. You can also get a higher loan if you have a good Cibil score; your potential lender will check your Cibil history before disbursing the loan. So, before applying for a loan, you must know your credit history. Paying your debts like current loan EMI or credit card due on time will help you improve your credit score.
- Know the interest rate, and other fees associated with a doctor loan
Knowing the interest rate and other charges is essential before taking any loan, and it applies to doctor loans. The interest rate and other fees vary from lender to lender. Do a little research to ensure that you get the best doctor loan interest rate and that the charges are minimum.
If you are talking about a large loan, a little variation in the loan amount can make a significant difference in the installment amount. However, the interest rate is not the only thing you need to consider before choosing a lender. Some financial institutions may have hidden charges. Make sure your lender is transparent about all the charges.
- Does your loan offer flexibility?
Even though you analyze the loan amount before you apply for a loan, sometimes calculating the exact amount can be difficult. There can be a situation when your loan amount is not enough to meet your requirements, and you might need more money.
What will you do if you need more money to complete the project? A flexible loan is the best way to get more loans even before repaying all the installments for your current loan. So, look for a lender that offers you the flexibility to get additional loan amounts if you need money in between.
- Eligibility criteria and documents required
A doctor loan is a hassle-free way to arrange money for the professional needs of a doctor, dentists, and others practicing medical professionals. You can avail of a loan anytime provided you are eligible for it. So, you must know the eligibility for a loan. Read below to know the criteria to avail loan for a doctor.
MBBS doctor Registered degree with Indian medical council
Specialist Doctor Registered degree with Indian medical council
Dentist 5 years experience post qualification
Ayurvedic and Homeopathy Doctor 2 years experience post qualification
|MBBS doctor||Registered degree with Indian medical council|
|Specialist Doctor||Registered degree with Indian medical council|
|Dentist||5 years experience post qualification|
|Ayurvedic and Homeopathy Doctor||2 years experience post qualification|
Apart from eligibility, you should also know the documents required to apply for the loan. Look at the following list.
- Medical registration certificate
- KYC documents (Aadhar card, PAN card)
- Income Tax returns, a balance sheet for an existing clinic
- Bank statement
- Copy of property papers