A Handy Guide To Doctor Loans In India
A Doctor Loan is a kind of business loan that helps doctors maintain or improve their medical infrastructure. Doctor Loan eligibility in India requires you to have a certain level of experience or to have your own practice. Here’s who can apply for a loan:
- An independent clinic owner with an owned house
- Minimum 2 years of post-qualification experience for graduate doctors (MBBS)
- Minimum 1 year of post-qualification experience for post-graduate doctors (MD/DM/MS)
- Minimum 5 years of post-qualification experience for dentists (BDS/MDS)
- Doctors with self-owned clinics.
- Employed physicians in government or private hospitals, clinics, or consultants.
A Doctor Loan from Bajaj Finserv is an exclusive product for medical professionals and offers multiple benefits such as quick approvals and low-interest rates.
The Features of a Doctor Loan
Now that you have understood what the eligibility for a Doctor Loan is, let’s take a look at the different features of this product.
Maximum Loan Amount
The maximum borrowable amount for doctor loans can vary from one bank to the other. Although they usually start at a minimum of INR 1 lakh, some banks even offer loans of up to Rs.1 crore. With a quick and convenient online application process, Doctor Loans by Bajaj Finserv go up to Rs.30 lakh for business and personal loans for doctors, and Rs. 3 crore for home loans and loans against property for doctors.
Doctor loans can have a tenor that ranges from 12 months to 20 years, depending upon the loan type.
The documents required for a Doctor Loan are:
- Identity Proof – Pan card/Voter’s ID/ Driver’s license/Passport
- Address Proof – Telephone Bill/Electricity Bill/Passport/Property Tax Receipt
- Proof of Highest Educational Qualification
- Financial Documents – Latest Bank Statements, from 3 to 6 months, Income Tax Returns (ITR), Gross Monthly or Yearly Receipts
If there is a co-applicant, you need to furnish their identity, address and relationship proofs.
The interest rates on doctor loans may be floating or fixed, depending on the loan amount and the lender. Doctor loan interest rates in India range from 10% to 20%.
Most banks do not require collateral or security unless the loan amount is unusually high.
You can avail of part prepayment or foreclosure facilities in order to repay a doctor loan. Remember to find out the prepayment charges that most banks apply as a penalty. The Doctor Loan by Bajaj Finserv allows you to prepay up to 6 times in one financial year, with the minimum prepayment amount equal to three EMIs.
Advantages of Doctor Loans
There are several benefits to doctor loans. The following are just a few:
- Doctor loans are easily available, with a range of loan amounts and tenors.
- Most doctor loans do not require any security or collateral.
- You can even apply online for a doctor loan.
- You can clear the loan faster using the prepayment option.
If you are planning to expand your operations or require urgent funding, a doctor loan is an ideal option for you.
Reasons why your Doctor Loan has been declined
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.
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 labeled 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 before applying for a loan.