With the growth of digital, there have been numerous advancements made in the fields of technology, healthcare, and medical practice. A doctor may need additional finances for a number of things, like updating their patient management software, purchasing new medical equipment, expanding their clinic, or hiring more employees.
In such cases, loans for doctors/medical practitioners come to the rescue, specifically designed to offer financial assistance to physicians and doctors. Let us look at the 6 financial products that are available to doctors to help them.
Top 6 Loan Options for Doctors to grow their Medical Practice
Business Loan
Most reputable lenders offer business loans, which may be acquired quickly and with little paperwork if the doctors have a strong credit history.
A business loan can assist doctors in opening a new clinic or hospital or even in acquiring an already-existing business. Doctors can utilise the funds from the loan to pay for the software and other tools needed to run the business in addition to managing their day-to-day working capital needs and paying their employees’ salaries.
Numerous lenders provide business and professional loan with reasonable interest rates and simple repayment schedules that fit the clinic’s or borrowing doctor’s medical practice’s cash flow.
Medical Equipment Loan
While doctors can get a business loan to purchase or establish a clinic or hospital, they also require money to buy expensive, cutting-edge equipment like X-ray machines, ventilators, and ultrasound scanners, in addition to specialised furnishings like beds, operating tables, and other items.
Specialized loans are available from numerous banks and non-banking financial organisations to purchase medical equipment. These loans have terms of up to seven to eight years and can range in size from Rs. 50 lakhs to as much as Rs. 5-15 crores.
Personal Loan
Doctors with the finest educational backgrounds are more likely to be approved for a personal loan to cover their own financial needs at competitive interest rates. Medical professionals can finance their vacations, house improvements or repairs, and more with the help of a personal loan. Doctors will find it easier to get a personal loan if they have a good credit score and history. In addition to being collateral-free, personal loans can be obtained with very little paperwork.
Loan Against Property
A loan against property is simple to obtain for doctors, especially if they want a sizable sum of money to cover personal or professional expenditures.
The need for expensive medical equipment or facility expansion is frequently forced upon doctors by a clinic or hospital. They could require additional funding for this. In these situations, a loan against property may be helpful.
A loan against property is a secured loan, as its name suggests, and doctors must have a property as collateral in order to apply for one.
Given that they can use the loan to extend the same property, this loan may be the best option for doctors who want to add space to their clinic or hospital. Doctors may also utilise such a loan to purchase commercial or residential real estate, open a new hospital or clinic, or even to receive rent discounts. The evaluated value of the asset used as collateral will determine the loan amount disbursed.
Doctor Loan
A doctor loan, often referred to as a physician loan, is a unique financial solution made available to licensed doctors and medical practitioners who run their own practice or work in hospitals, clinics, government or private clinics, and consulting firms. Every doctor has a different need, whether he is starting his own independent practice or growing his current clinic to provide greater treatment alternatives and a doctor loan helps with this.
Home Loan
Doctors need a place to call home just like everyone else. They can purchase or construct a home with a home loan, just like everyone else. There is a distinction, though.
Due to factors including possible layoff risks, pay reductions, or inconsistent incomes, some lenders could be reluctant to provide loans to professionals who are salaried or self-employed. For obvious reasons, skilled doctors are constantly in demand, even during a recession, and they can continue to work much past the traditional retirement age. Nevertheless, doctors, especially those who operate their own clinics, often have fewer of these problems.
In fact, a lot of lenders give doctors bigger loans with better interest rates and payback periods. In addition to providing value-added services like property search assistance, legal or technical support, and assistance with due diligence to ensure the property is clear of any legal impediments, a competent lender will also assist doctors.
Documents Required for a Loan
The set of documents needed is as follows:
- KYC documents consisting of Residence Proof, valid ID, Aadhaar card, PAN card .
- MCI/IMA Registration Certificate or appropriate as per qualification.
- Bank statements of the last six months
- ITR and statement of computation for the last two years.
- Form 16A of the past two years.
- Information on any further loans that were obtained in the past or are still being serviced.
- any other document that the lender requests.
| Relevant charges and fees for a loan for Doctors | |
| Interest Rate | Starting from 1%-2% per month |
| Fee for Processing | 1%- 2% of the loan amount |
| Pre-Closure Charges | Nil |
| Loan Tenure | Maximum up to 3 years |
| Loan Amount | Collateral free up to Rs.50 lakhs |
| Repayment Method | Generally EMI |
| Type of Loan | Line of Credit or Term Loan |
All of these loans, whether flexi loans or fixed loans, are normally available to doctors. Flexi loans are typically a better choice because they let you borrow only the amount you actually need, in instalments. You can use the remaining money in the future. You only pay interest on the amount you actually borrow when you take out a flex loan; you do not pay interest on the total amount that has been approved.