A doctor's career can be full of challenges, but income is also high. However, to reach a level where you generate high income every day, you need to establish a well-equipped clinic and buy necessary medical equipment. If there is any lack in the facilities, the patients may not look upon you as a dependable doctor.
Is lack of finance hindering your journey as a doctor? The pandemic taught us the importance of doctors, and that's why so many financial institutes/banks are readily offering numerous kinds of doctor loans. So, finance won't be a hindrance for you anymore.
But you should always make finance-related decisions after knowing all the ins and outs.
Did you know?
The government announced a cover of ₹50,000 crores for supporting health infrastructure in all tier 2 and 3 cities in India. The government allocated ₹23,220 crores focussing primarily on pediatric care. The maximum loan limit will be ₹100 crores at an interest rate of 7.95% for three years.
Also Read: How To Start A Pharmacy Shop In India?
What Can You Use Doctor Loans For?
A doctor loan can be a great way to serve various purposes. Depending on your requirements and practice, you can benefit yourself through this loan by:
- Opening a new clinic and tackling initial infrastructural expenses
- Installing various necessary equipment or upgrading your old ones
- Employing qualified staff and expanding your clinic's reach of treatment and facilities
- Modernising or renovating your clinic
- Buying office equipment, including machines, furniture, computers, fax, AC, etc.
Eligibility Criteria for a Doctor Loan
Whether you're a self-employed practitioner or a salaried medical professional, you'll have to meet some eligibility points to get the loan approved. Here are some vital eligibility criterias:
- Age must be between 22-65 years
- Have work experience of 1-year minimum
- Earn over ₹15,000
Besides the criteria we've mentioned above, a few lenders also consider debt-free repayment history, CIBIL, or credit score (generally 750 plus). You can enjoy low doctor loan interest rates with a high credit score.
Consistently pay your loan repayments, credit card bills and whatever debts you have to maintain a ealthy credit score. Pay attention to your credit score before submitting a loan application to stay certain and avoid last-minute errors.
Educational Qualifications Required
Here are the qualifications that a medical doctor needs to have to avail loans for doctors in India:
- MBBS - for Graduate Doctors
- BAMS/DHMS/BHMS - for Homoeopathic and Ayurvedic Doctors
- MD/MS/DM - for Super Specialist Doctors
- BDS/MDS - for Dentists
You should have the following documents:
- Address proof – Ration card, passport, electricity bills.
- Identity proof – Aadhaar card, Voter ID, driving license, passport.
- Employment certificate for salaried individuals, stating a year of continuous employment.
- Income proof (for self-employed) – Copy of previous six months' bank statements salary slip of salaried employees for the past three months.
Which Banks to Approach for a Doctor Loan?
SBI Doctor Plus
SBI doctor offers an easy credit solution for medical professionals in any field. It will be ideal for medical professionals with entrepreneurial dreams, especially those who want to get a loan for doctors to open clinics. Trustees and registered medical firms are also eligible for SBI Doctor Plus.
A doctor can use the money to establish their pathological lab, clinic and X-Ray lab, nursing homes, drug stores and more. This loan could also be useful to purchase ambulances, purchasing medical equipment including computers, lab equipment and more. An SBI Doctor Plus personal loan is sanctioned for making expansions or renovations to your existing hospitals or clinics.
You can get the money to fund things like marketing and business trips connected with the medical profession.
- SBI Doctor Plus has the option of a flexible repayment period, ranging from 3 and 7 years.
- You can take out the loan amount ranging from ₹10 lakhs to ₹5 crores.
- The rate of interest ranges from 10.25 % to 10.75 % per year.
Canara Bank Doctor's Choice
Canara Bank Doctor's Choice is provided to registered physicians who practice ayurvedic, Unani, dental, allopathy and homoeopathy medications. The bank provides a maximum credit amount of ₹5 crores, and doctors must demonstrate a minimum of 3 years within their respective fields.
The loan for medical expenses is useful for buying medical equipment, setting up clinics, nursing homes, X-Ray/pathological labs, etc.
- The rates for interest vary between 10.05% to 11.85%.
- The loan is repayable at any time within seven years.
You can get the Bajaj Finserv loan for any other purpose (such as weddings, holidays, child education and other such things). You can apply for an amount of up to ₹50 lakhs. You won’t have to pay a fee for any prepayments. The prepaid amount must not be less than the sum of three EMIs. There is no maximum amount set on the amount prepaid.
A Bajaj Finserv loan is renowned for its minimal documentation and rapid approval. You'll receive this loan's payment to your account within 24 hours. You can take advantage of a Flexi loan facility to make a prepayment and then use the funds to reach a set limit. In addition, there is no interest charge on the amount you'll use.
- You can repay it with a flexible duration of between 1 and 8 years.
- No-hassle online application.
- You don't have to pledge this loan's collateral, and it is a personal one.
BOI Personal Loan for Doctors
The loan is available to any medical professional with a Medical Council of India (MCI) registration. The person applying for the loan must be between 25 and 75 years old. This loan for medical expenses is useful by any registered doctor with a minimum of three years of experience. This medical loan can be avail as an individual, joint, proprietorship.
However, at least half of the promoters, directors, or partners should be medical practitioners. The trustees should be granted the ability to borrow. The minimum requirement is that one trustee must be a registered and qualified medical professional.
Such loan schemes are also sanctioned for making expansions, modernisations, renovations to your existing premises.
- It can be repaid with a flexible term of up to 7 years.
- The maximum amount for a loan is ₹20 lakh, which is 24 times the monthly gross income.
- This loan is an excellent option for purchasing medical equipment, computers, ambulances, or lab equipment.
PNB Sanjeevani Personal Loan for Doctors
The loans are available to physicians who practice Allopathy, Unani, Ayurvedic and Homoeopathic practices. The loan scheme is available to applicants with the funds available starting at ₹1 lakh and up. The bank will waive 20% of processing charges for online applications.
- The interest rate begins at 11.85%.
- The loan you can pay back at any time within seven years.
Allahabad Bank Personal Loan for Doctors
The maximum amount of ₹5 lakhs in this program. The applicant must be under 65 years old at the time of loan sanction. The bank will charge a small processing fee of 1.20% of the loan value, or the equivalent of ₹600.
- The rate of interest begins at 14.70%.
- It charges a prepayment cost of 2.20% of the principal amount outstanding.
- You must repay this personal medical loan in five years.
Bank of Baroda Doctor Loan
The loan is accessible by any licensed medical professional through an overdraft, term loan, or working capital loan. It is a great way to build operating theatres, clinics, clinics cum nursing homes, residences, etc. The loan is useful for purchasing diagnostic equipment and medical equipment such as ambulances, good carrier ACs, computers, furniture, office equipment, etc.
- Such loans are also accessible for renovations or expansions of existing premises.
You should compare numerous options for professional loans for doctors. Otherwise, you may miss the best chance. Plan your repayment methods. Consider multiple factors like EMIs, penalties, interest rate, loan tenure, etc.