How a Professional Loan for Doctors Differs from Other Loans

To run a clinic or private hospital, you require a huge sum of money as medical equipment costs lakhs of rupees. With new technologies sweeping the medical sector, clinics need the latest facilities to offer the best care possible.

For any such purposes or for the expansion of your clinic, you can rely on a professional loan for doctors. This loan is specially designed to cater to the needs of professionals working in the medical sector.

Read on to know more about professional loans for doctors and how they function.

What is a Profession Loan for Doctors?

In order to run your clinic or hospital efficiently, you need to have state-of-the-art medical equipment. However, furnishing your clinic with such medical apparatus can be a costly affair.

A professional loan for doctors and medical practitioners allows you to fund the upgradation or expansion of your clinic. Moreover, since these loans are tailored to suit your professional profile, lenders generally offer affordable terms.

For example, the doctor loan interest rates are generally lower than the regular unsecured business loan offered to other entrepreneurs. As such, these specialised offerings are the smarter choice when you need funds as a doctor.

Benefits of Availing of a Doctor Loan

Here are some of the benefits that you get to enjoy if you avail of a professional loan for doctors:

Serves Multiple Purposes

A doctor loan allows you to use the loan amount for various purposes. You can use it for any expenses relating to the running of your clinic. For instance, you can use these funds to meet expenses of:

●       Buying new state-of-the-art medical tools and machines

●       Renovating or expanding your clinic

●       Hiring the staff for the clinic

●       Advertising and marketing the services offered

Depending on the size of the clinic, these costs can easily range in lakhs of rupees. Thankfully, lenders offer an ample sanction, and you can even access these funds without pledging any collateral.

Higher Loan Amount

The cost of medical equipment can go up to Lakhs, and sometimes even Crores. In order to cover these expenses, lenders offer higher amounts of loans. Some lenders even offer a loan amounting to up to ₹40 Lakhs.

Flexible Repayment Tenure

Most lenders offer flexible tenure options when it comes to such loans. This is because your professional profile indicates a certain level of financial stability. As such, it is much easier to get more favourable terms, which in this case would be longer tenure options.

Do note that a flexible tenure works in your favour as it allows you to optimise your outgo, based on your capabilities. So, depending on your practices cash flow or your current financial capabilities, you can adjust the tenure based on your convenience.

Simple and Quick Process

Lenders generally allow you to apply for this professional loan for doctors online, making the entire process simple and quick. As a doctor, you may not have the spare time in the day to tend to tedious loan processes or visits to a lender branch.

As such, digital provisions are ideal and lenders offer such provisions. Some lenders even offer completely digital lending services, wherein you get the funds in your account within hours.

Minimal Documentation

Doctor loans are customized to provide medical practitioners with a lending process that is as easy as it can get. So, you can avail of a professional loan for doctors without complex paperwork as well.

Eligibility Criteria for Professional Loan for Doctors

Although the eligibility requirements for a professional loan for doctors vary depending on the lender, you may need to fulfil certain criteria.

Here are some of these basic requirements:

●       The applicant must be an Indian resident

●       The applicant must be a practising doctor with MBBS, BDS, or BBS degree with minimum experience

●       The applicant must be between 26 to 65 years of age

●       The applicant’s CIBIL score must be at least 720

Documents Required for a Professional Loan for Doctor

To enjoy the benefits of a professional loan for doctors, some lenders will require documentation. These are usually basic KYC documents, but can include paperwork about your clinic or qualifications.

●       Proof of Identity: Aadhaar card, PAN card, Passport, Driver’s license, or Voter’s ID

●       Proof of Address: Aadhaar card, Passport, Driver’s license, or Voter ID

●       Address Proof of the Clinic: Utility bills for the professional space

●       Income Proof: IT returns or bank account statements

●       Qualification Proof: Medical degree of the borrower

How do Professional Loans for Doctors Differ from Other Types of Loans?

Professional loans for doctors differ from other business loans in many ways. For one, this type of loan is sanctioned only to these professionals. Secondly, business loans can only be used for business-related expenses. However, a professional loan for doctors allows you to use it for both professional and personal needs.

Moreover, a professional loan for doctors is custom-made for these medical practitioners. As such, the tenure is generally longer, up to 84 months, and the rates are lower. Finally, the maximum sanction offered for these loans is much higher than regular loans.

As such, you can access a much higher loan amount, allowing you to meet a wider range of obligations without any compromises.

In conclusion, a professional loan for doctors is the smart choice, especially if you need funds urgently. They can also come in handy if you want to expand or renovate your clinic or handle personal emergencies. Do note that it is important that you choose the right lender, as some may have special features and perks for professionals.

Moneycontrol Journalists were not involved in the creation of this article.