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From setting up a self-owned clinic to expanding one’s practice, business loans for doctors allow medical practitioners to realize their dream. In this regard, an increase in loan value of 8.80% was recorded until early September 2019. While this consists of all types of loans, business loan applications have increased manifold in recent times.
Numerous NBFCs have come up with schemes that allow practitioners to set up their chambers along with acquiring all updated equipment. Medical professionals, often dealing with life-threatening situations, require cutting edge technology for appropriate treatment.
Ranging from business to personal and even home loans for doctors, there are numerous financial products that are custom-made for medical practitioners. These loans have features that especially suit the financial requirements as well as the repayment capability and nature of doctors. Underneath, prime features of business loans for doctors are discussed.
- High loan amount: Irrespective of whether it is setting up the basics of a chamber or buying the latest equipment, usually requirements of doctors are of high financial value. Consequently, while availing a financial product that aids doctors with monetary help, it is imperative that the loan amount is high. Financial institutions offer up to Rs. 37 Lakh with business loans for doctors so that they can avail of all necessary equipment for smooth service.
- Flexible tenure of repayment: Usually NBFCs offer a flexible tenor of repayment which ranges from 12 months to 96 months. This ensures that doctors do not face excessive financial burdens while repaying their loans.
- Easy eligibility: For practitioners wondering how to be eligible for a doctor loan, different sets of requirement is necessary over varied types of doctors. While super-specialist doctors (MD, MS, DM) require no post-qualification experience, graduate doctors (MBBS) require two years of it. In the case of dentists, this time frame goes up to 5 years while for Ayurveda and homeopathic practitioners (BHMS, BAMS) it reaches 6 years. For DHMS homeopathic practitioners, 15 years of experience is required.
- Minimal documentation: Business loans that cater to doctors have minimal documentation requirements. Doctors only need to present their KYC documents along with their medical registration certificate to apply for such loan products.
- Collateral free: Along with easy doctor loan eligibility, application, approval, and disbursal, these loans are collateral-free. Additionally, they also do not require any guarantor while application, which makes it convenient to opt for.
- Prepayment facilities: Prepayment facility without any additional charges is a vital feature of such loans. Usually not less than 3 EMI amount, these prepayment options ensure lesser interest repayment due to shortened tenor.
With the above features and benefits, even budding doctors can live their dream of setting up a self-owned practice. As for doctors already having a practice, acquiring new technology or more staff becomes affordable with these loans. Considering the promptness that is necessary for medical care, doctors can ensure that they are buying the right medical equipment with these loans and effectively aid patients with better service. Easy doctor loan eligibility criteria also mean that any practitioner can opt for this financial product and conversely cater to more patients.
While opting for any financial product, be it business loans for doctors or any other loan, doctors must check these above features in the scheme. Additionally, it is vital that regular repayments are cleared with EMIs since defaulting does not just lead to a higher interest rate but also puts the existing practice in jeopardy.