Understanding a Doctor Loan: Here are 5 Important Aspects to Know

From having the latest equipment to having adequate space and staff, doctors have to manage a lot. Having sufficient financial resources is an essential aspect of keeping up with these advancements and requirements.

This is where a doctor loan comes into play. These loans are tailored financing solutions enabling healthcare providers to secure the workforce and equipment needed. Read on to learn more about these loans and what makes them a good option.

What is a Doctor Loan?

A doctor loan is a customised financing solution for medical practitioners.

Doctor loans offer higher sanctions at affordable cost. Moreover, a doctor loan can be secured and unsecured.

Similar to a regular personal loan, you can use the funding from a doctor loan for any purpose, such as:

● Setting up or expanding your clinic

● Installing new equipment

● Hiring more staff

● Paying overhead costs

● Renovating the clinic

● Marketing your services

Features and Benefits of Doctor Loans

Listed below are the top features and benefits of a doctor loan:

● Ample funding without any collateral requirements

● Attractive interest rates with flexible repayment tenure

● Minimum eligibility and document requirements

● Prepayment options and online management

● Quick processing facilitating quick access to funds

● Easy and seamless online application

Eligibility and Documentation for Doctor Loans

Lenders approve doctor loans only if you meet the eligibility requirements and have the necessary documents.

While these terms vary across lenders, there are some standard requirements as mentioned below:

Eligibility Criteria:

● Indian citizen between the age of 26-65 years

● A certified and practising doctor

● MDS, BDS, BAMS, BHMS, MBBS (depending on application)

● Minimum experience of 2 years, post registration

● A credit score of 720 and above

Documents Required:

● Qualification certificate

● Proof of address (utility bills, rental agreement, etc.)

● Proof of identity (voter ID, Aadhaar card, driving license, etc.)

● Proof of income (bank statements, ITR, salary slips)

● Proof of employment

● Passport-size Photographs

Remember, the doctor loan eligibility criteria and documentation may vary depending on the lender you choose. You should go through the requirements of your chosen lender before to ensure that you qualify for the loan.

How to Apply for a Doctor Loan

Applying for a doctor loan is now easy and quick as a majority of the lenders offer a digital application.

Outlined below are the general steps you can follow to apply for this loan:

● Visit your chosen lender’s website

● Navigate to the Doctor Loan application section

● Fill in the required details

● Submit your application

Once you submit the application, a representative will contact you to process your application further. Generally, you will have to submit or upload the required documents after finalising the offer.

After your application gets approved, the lender will disburse the sanctioned amount to your preferred account. There are some lenders that offer access to funds in a matter of hours, if not minutes.

Points to Remember While Applying for Doctor Loans

Before you apply for the loan, keep the following points in mind and make an informed decision.

● Check the interest rates and other costs

The interest rates and other costs, such as processing fees, determine your borrowing costs. Given this, it is crucial to check these before you apply for the loan. This will help ensure you make a cost-effective decision.

● Assess the loan amount and repayment capacity

Borrowing more than you can manage or need can result in undue financial strain during repayment. As such, assessing your needs and capabilities are crucial steps. You can use online calculators like the EMI calculator to estimate your repayment amount and adjust loan terms accordingly.

● Read through the terms and conditions

Overlooking the terms and conditions of your loan is unwise. For example, certain lenders allow prepayment only after you pay a certain number of EMIs. Some even charge a fee for such payments.

If you don’t consider this while planning your loan, it can result in additional costs. It can even cost you more than you can save if you do not time the prepayment accordingly. As such, going through the terms and conditions before accepting the offer is crucial.

● Evaluate the add-on benefits and features

Some lenders may offer add-on benefits or features, such as a flexi loan facility. These enhance your borrowing and repayment experience. By evaluating these benefits, you can choose a lender that offers loans with suitable features.

● Look for Pre-Approved Offers

A pre-approved doctor loan can be processed quickly, giving you fast access to funds. Moreover, these offers are made available only for certain applicants and, as such, can have more attractive interest rates.

Given this, checking your pre-approved before applying can help secure quicker funding at an affordable cost. To check your offer, visit your chosen lender’s website and navigate to the pre-approved offer section.

Now that you know the doctor loan eligibility requirements, uses, and benefits, borrow wisely. Remember to compare different doctor loan options to choose the one that offers the funding you need at an affordable cost.