With the growth and advancement in the medical industry, medical practitioners have been able to enhance their preventive, diagnostic, and other medical services. Nevertheless, installing advanced medical equipment also involves a substantial investment. Further practice expansion is another aspect that requires sizable funds. As a result, every healthcare professional is looking for a doctor loan from leading financial institutions today.
Most medical professionals resort to such a professional loan for several reasons including – expansion of private clinics, installation of medical equipment, purchasing telemedicine tools and software, renovating the medical facility, etc.
Nevertheless, though most financial institutions extend credit to healthcare professionals readily, there are a few questions that they must ask before applying for a loan.
Things to ask before applying for a loan
Here is a list of questions every doctor must ask before applying for the credit –
- How much should you borrow?
The amount to be borrowed depends entirely on the purpose of availing a loan in the first place. Typically, the funding needed to purchase medical equipment will be lower than the cost involved in starting their own medical practice. Therefore, doctors should factor in the purpose and the related cost involved before availing a loan.
2. Are you eligible for a loan for doctors?
Checking eligibility criteria accompanying the doctor loan is a potent way of finding out if an individual is eligible for it or not. Typically, a business loan for doctor comes with the following few standard requirements –
- For MBBS: At least 2 years of experience after graduation.
- BDS/MDS: At least 5 years of experience post qualification.
- DHMS: A minimum of a 15-year experience and they should also possess a house or clinic.
- BHMS/BAMS: At least 6 years of experience and must own a clinic or a house.
To ensure that their loan application does not get rejected, individuals should also check the additional criteria that will make them eligible for a doctor loan.
3. What are the documents required to apply for a doctor loan?
Individuals should also find out the set of documents they would need to submit to avail credit. With leading financial institutions, applicants are required to provide these following documents –
- KYC documents
- Medical registration certificate
- Proof of income
Notably, the list of documents required may vary from one lender to another. Resultantly, medical practitioners should find out about them in advance.
4. What is an ideal credit score to avail a loan?
Generally, a high credit score and clean credit history work in favor of loan applicants. However, the threshold of the same tends to vary among financial institutions. For example, some leading financial institutions like Bajaj Finserv consider applicants with a credit score of over 750 eligible to avail a loan for doctors.
They also provide benefits like pre-approved offers to their customers to make the entire experience of seeking financial assistance seamless and less time-taking. Mostly such offers apply on financial products like professional loans, business loans and personal loans. Check your pre-approved offer only by entering your name and contact number.
5. What is the interest rate accompanying a doctor loan?
Another crucial question which doctors should ask before proceeding with their application is the doctors loan interest rate applicable to their loan amount. They should look for lenders who levy an affordable rate of interest on the availed loan amount. Additionally, they must check the other associated charges like processing charge, part-prepayment charges, EMI bounce charges, etc. to make an informed decision.
6. Will you be able to make part-prepayments on your loan?
Questions pertaining to part-payment and foreclosure are vital when it comes to availing any loan. This is why individuals must make it a point to find out if they can foreclose their loan account or make part-prepayments of their credit or not. The policy regarding these depends entirely on the lender. Also, with the best lenders, these facilities are available at low to no cost.
7. How early can you receive loan approval and disbursal?
It is crucial for applicants to check the approval and disbursal time to avail of quick financial assistance. Typically, some leading financial institutions approve immediately and disburse the loan amount within 24 hours of approving an application.
Other than these, doctors should ask about the flexibility of repayment options and the tenor that accompanies a doctor loan. Once they are ready with the essential information regarding their advance, they can proceed to apply for the credit.