A doctor loan, sometimes referred to as physician’s loan, can be availed by any practicing doctor in India working in their own clinic, or in a government or private hospital. Even doctors working as consultants may apply for a doctor loan. These loans are provided exclusively to doctors and may be used for any of the following.

  • For purchase of vehicles and ambulances
  • Setting up a clinic, pathological and medical labs, drug stores, and pharmacies.
  • For acquiring medical equipment
  • Expanding and refining their existing infrastructure.
  • To fund marketing and business trips.

Why is a Doctor Loan a Smarter Choice?

Doctor loans are designed specifically to meet the needs of medical practitioners. Medical infrastructure is quite expensive and usually requires a large amount of money. What makes a doctor loan in India special is the convenience of borrowing a large sum without the need for any guarantors or collateral.

Also Read: A Handy Guide to Doctor Loans in India

How Do You Avail a Doctor Loan?

If you’re a practicing doctor, you’ve already met half the eligibility criteria needed to apply for a doctor loan. Apart from this, you need to have a few years of experience to cover the basic requirements. Banks usually have an experience requirement of 3-8 years, depending on your qualification, either in a private practice or as a doctor in a hospital

The documents you need are quite similar to availing a personal loan, like proof of age, proof of identity, and proof of residence/work. The additional documents that you need to secure a doctor loan include your educational qualification certificates and details of your IT returns.

What are the benefits of a physician loan?

Doctors and healthcare practitioners need to balance their work with business needs. Loans for Medical equipment cover:

  1. Improving cash flow to purchase new medical equipment
  2. Capital for upgrading the facility to provide more services. For example: upgrading a maternity nursing home to provide specific cosmetic surgery services
  3. Conserving cash reserves to maintain ancillary equipment (Furniture, Ac, Elevators)
  4. Maintaining financial flexibility or re-financing for used equipment
  5. Balance transfers on existing medical equipment loan
  6. Hospital Infrastructure Finance
  7. Operating lease for equipment
  8. Machinery for special needs such as dental units, eye centers, diagnostics centers and pathology laboratories
  9. Machines and technology for specialty care providers such as skin clinics, hair clinics, limbs and bone care and rare diseases

Excellent healthcare for your patients with the latest medical equipment

By prudently planning your business operations and by streamlining expenses/financial process, you can provide excellent healthcare to your patients. Fast changing technology in healthcare and regular upgradation of medical equipment are some of the biggest challenges faced by doctors.

Medical equipment is not only expensive but also blocks financial liquidity. Leasing medical equipment by taking advantage of a physician loan is by far a sensible and workable solution for health care practitioners.

Taking a Doctor Loan? Here’s what you need to know

Before applying, you need to understand the complexities involved with taking a doctor loan and plan accordingly. Let’s look at questions you need to ask yourself before you taking a Doctor Loan:

What Is the Purpose?

The first thing you need to ask yourself before taking a doctor loan is—what is the main reason behind your quest for funds? Is it a specific medical instrument you wish to acquire? Or are you thinking of setting up a new clinic closer to the commercial part of the city? Well, once you have a clear idea of your needs, you can look for a doctor loan that meets your requirements.

What Sort of Repayment Process Would you Prefer?

Each loan has a different interest rate and would require a different EMI from your end to finish the repayment process. Look for different financiers that are present in the market and select the one that suits your financial situation the most.

What Is the Interest Rate?

Doctor loan interest rates have a major bearing on your financial plans, so choosing the scheme with the lowest rate should definitely be a consideration. You can also reach out to a mortgage agent who will help you get the lowest rates possible.

What Are Your Monetary Requirements?

Another important question to ask yourself is what is the exact amount of money you require? Different banks offer varied loan amounts to borrowers and finding the one that meets your exact requirements can be a tad bit challenging.

At the end of the day, your finances need to work for you so that you are able to treat your patients with the best technology and fastest relief.

Also Read: Check Your Eligibility And Required Documents For Doctor Loan

Common mistakes to avoid if you’re a doctor borrowing money

Investing In the Wrong Things

One of the worst mistakes doctors make while borrowing money is taking loans for the wrong reasons. For example, if you’re running out of money to pay your staff, borrowing money to cover their salaries puts you in more debt. Try budgeting your payrolls instead.

If you don’t need to buy new equipment, don’t buy it. If your existing equipment is faulty, send it for repairs instead.

Not Addressing Their Specific Needs

If you want to expand your infrastructure or buy a new ambulance, don’t blindly go for business loans and vehicle loans. There are customised loans available for physicians to help them save their precious money. Use them to your advantage.

These loans, like the Doctor Loan offered by Bajaj Finserv, are designed exclusively for doctors and their requirements. In fact, doctor loan interest rates are relatively lower compared to regular business loan interest rates.

Not Exploring Their Options

Try not to rush when you deal with large sums of money. Some doctors will stop the search for financing options after approaching the first lender itself. This should be avoided at all costs.

With the variety and range available in the market right now, you could easily find yourself a better deal if you spend a little time talking to multiple vendors and assessing all the different offers.

Not Exercising Foresight

A lot of times, doctors will borrow money for things which won’t generate enough capital to recover the borrowed amount. Whether its equipment or a pharmacy, you need to see how much money you’re spending and how much money you’re going to get back. If you invest in something without understanding how it helps repay your loan, it makes no sense borrowing money and increasing your debt.

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