3 reasons why your Doctor Loan has been declined
Doctor loans are quite popular in India, where every other child dreams of becoming either a doctor or an engineer. As doctors enjoy respectable and financially secure positions in society, financial companies have no problems issuing loans to them. However, this is not the case for every doctor in the country – many loan applications are rejected as well.
If you’re someone who’s been declined a doctor loan, then you may be keen on finding out more about the reasons behind the rejection. Here are some of the top reasons for doctor loan rejection in the country:
- A Low Credit Score
Your credit score is the number one factor that financial companies take into consideration before approving or rejecting a loan application. If you’ve neglected to pay your EMIs on time for any of your previous loans, then your credit score will very likely take a hit. The same goes for all those times you’ve failed to pay your credit card bills.
With a low credit score, chances are that even a highly reputed doctor will be denied a loan. That’s why it’s essential to maintain a good credit score before applying for a doctor loan.
- Multiple Loans in Progress
If you already have a number of other loans that you need to pay back, then your ability to repay a new loan will be seriously questioned by financial companies. More often than not, you will be labelled a high-risk individual in the eyes of your lender when you have multiple debts pending. At such times, it doesn’t matter if you’ve paid all your EMIs on time or even if you have a good credit score; your doctor loan eligibility is inevitably affected in a negative manner.
- Fresh off the Boat
Job stability is another factor that plays a major role in the loan approval process. If you’re someone who’s just graduated from medical school, then obtaining a doctor loan may prove to be quite difficult. In order to grant a loan, your lender needs to be sure of your ability to maintain a certain a level of income. It’s a good idea to gain at least a few years of experience in the field before applying for a loan.
Financial companies also look at the employment history of those who have been working for a long time. Serial job switching is frowned upon by lenders, who prefer applicants with stable work backgrounds.
If you want to take a doctor loan in India, then you should consider the attractive options that Bajaj Finserv provides. This company offers doctors loan interest rates that are quite low. Depending upon your needs, you can take loans of up to INR 45 lakh with absolutely no collateral.
You can also prepay your loan up to 6 times a year, and if you do decide to foreclose your loan, you aren’t penalised. The online application process ensures that you don’t need to step out of your home. Check out the list of documents required for doctor loan at Bajaj Finserv whenever you want to.
A doctor loan can give you financial breathing space when you need it the most. Apply for one with a reputed lender like Bajaj Finserv, who is well known for providing a ton of benefits.