Medical professionals often face a financial crunch when they are in their service expansion stage. Expansion goals such as the inclusion of more services, hospital/clinic renovation, machinery upgradation, and digital promotions require funds. In such a scenario, a Doctor’s Loan can be a fit financing instrument for medical professionals.
Doctors’ Loans or physician loans are unsecured credit products offered to medical professionals to cover their short-term and long-term expenses. Among the various types of financing for medical professionals available today, Doctors’ Loans are gaining immense popularity. These loans can be used for big-ticket expenses, consolidating high-interest debt, etc.
Read on to understand why a Doctor Loan can be a good funding option for medical practitioners.
Ways to use a physician loan
Since these loans are unsecured, you can use them as per your requirement. Some ways in which you can use a physician loan include:
- Upgrading equipment: As technology evolves, it is better to stay prepared and fully equipped with the latest medical equipment. However, medical equipment is quite expensive, and some equipment is sold on a pre-order basis. You can use funds availed through a Doctor’s Loan to buy advanced machinery and equipment for your clinic or hospital.
- Clinic expansion: If you wish to expand your services, you will require space to keep the newly acquired medical equipment. In addition to this, you will also need extra rooms to perform certain medical procedures. Here, a physician loan can come in handy.
- Hiring staff: Having a trained group of medical professionals at your clinic/hospital will improve patient outcomes effectively. Sometimes it is hard to find well-trained medical professionals, especially in rural areas and towns. You can use these funds to hire trained staff or to train them and improve their skillset.
- Fund higher education: If you wish to improve your skillset and go for higher education, you can opt for a Doctor’s Loan. These loans can be availed of at attractive interest rates, which means they will not increase your cost of borrowing. Besides this, many lending institutions enable you to choose a flexible loan tenure, so you can repay the loan with ease.
- Debt consolidation: In case you have multiple ongoing loans, you can use a Doctor’s Loan to consolidate high-interest debt. Debt consolidation is a process where you combine your multiple EMI payments into one loan. Using funds availed from a Doctor’s Loan, you can reduce the burden of debt by consolidating it.
Physician loan eligibility criteria
Various lending institutions and non-banking financial companies (NBFCs) are offering Doctors Loan at competitive interest rates. The eligibility criteria differ from lender to lender, but most requirements are the same. Lenders are offering online Doctors’ Loan applications to expedite the loan approval and disbursal process.
Below are the eligibility criteria for Doctor’s Loan.
- Age- The borrower should be between 22 to 65 years of age.
- Work experience- The borrower must be a practicing professional for at least 1-year post-qualification.
- Income- The borrower must have a minimum professional annual receipt of ₹3 Lakh.
Documents required for Doctor’s Loan
KYC documents- PAN Card/ Aadhaar Card, (for self-employed professionals)
Residence address proof- Rent agreement/ electricity bill/ passport
Business address proof- Rent agreement/ electricity bill
Professional documents- Doctor’s prescription letter, certificate of practice, and degree certificate
Financial documents- Bank account statement for the past 6 months
Doctor Loans are unsecured loans that can be availed at competitive interest rates. These loans can be used for a variety of purposes for medical practice expansion. Medical professionals can use the funds availed through a physician’s loan for clinic expansion or renovation, hiring trained staff, upgrading medical equipment, and introducing new services and medical procedures.
Applying for a physician’s loan has become easier as most lending institutions and non-banking financial companies (NBFCs) are offering online applications. All you must do is visit your chosen lender’s official website, fill out the online loan application, and upload soft copies of the required documents. The digital process ensures fast approval and quick disbursal of funds. \
Also Read: Special Loans for Doctors in India – What Do You Need to Apply
Before applying for the loan, you can also use an online Doctors Loan EMI calculator to calculate your EMIs against the desired loan amount and tenure. This way you will be able to put aside funds for your EMI payments, ensuring a hassle-free loan journey.