When it comes to signing up for a loan, choosing the correct provider gives you many benefits. Apart from monetary advantages, this also helps you in other ways, like ensuring that you get good customer service. So, not only must you evaluate the loan, you must pay close attention to the provider too.

Here are some important questions to ask yourself when considering various loan providers:

1. Which Is The Best Source Of Finance For Your Purpose?

  • Know your financial needs: The market is filled with options that offer varying benefits. Start by understanding your requirements. Doing this ensures that the source of finance and the lender are best equipped to deal with your needs.
  • Go for a customised option: If you are a practicing or consultant doctor, a customised doctor loan is the best source of finance, as it caters to your busy schedule, offers simple eligibility criteria and picks up the documents from your doorstep.
  • Choose the right product: Narrow down on the particular loan you need within the umbrella of doctor loans, which includes personal loans, business loans, home loans and loans against property. For example, if your goal is to buy a home, a home loan will offer more benefits as compared to those offered by a personal loan. The customer service providers will also be better equipped to handle your queries.

2. Do You Want A Secured On Unsecured Loan?

  • Understand your risk capacity: It is important to deliberate whether you are comfortable with pledging assets as collateral. For those comfortable with putting assets at stake, choose a lender offering secured loans. Usually home loans and loans against property are secured and offer higher loan amounts. If you aren’t comfortable with risking assets as collateral, take your time to find a lender who isn’t requesting collateral. Usually personal and business loans for doctors are collateral-free loans.

3. What Is The Principal You Need To Borrow?

  • Calculate the amount: Knowing the principal amount is one of the key factors when borrowing the loan. Without an idea of how much you need to borrow, you may end up over- or under-borrowing. Determine this by listing all the tasks you want to achieve and the cost of each. Then, total the costs and select a principal accordingly. For example, if you are taking a business loan to fund the purchase of equipment like intravenous pumps, pulse oximeters, vital sign monitor and anaesthetic machines for your surgery room, calculate the cost first and then choose your loan amount.
  • Finalise the lender: Choose a lender who is offering you the amount you seek at favourable terms.

4. Would You Need One Loan Or A Combination Of Loans?

  • Choose the mix: In some cases, multiple loans will fulfil your needs better. Choosing a mix of a collateral-free loan and a secured loan from one lender makes managing multiple loans easier. Choosing a combination of loans helps you achieve your goals and also allows you to enjoy customised benefits that the provider has to offer. For example, home loan borrowers can gain from services like property search and property dossier and avail preapproved offers on a personal loan.

5. What Is The Emi That You Can Pay?

  • Choosing the right tenor: If you think your income is sufficient to pay high EMIs, opt for a short tenor, so that the loan gets cleared quickly. If you want to pay nominal EMIs, then opt for a loan with a longer tenor. Seek a lender offering an interest rate that keeps your EMIs to a minimum.

6. Do You Have A Good Credit Score?

  • Check your score: Before selecting a loan provider make it a point to check your credit score. You can do this by contacting Credit Information Bureau (India) Limited, also known as CIBIL.
  • Improve your score: If your score is low, take measures to improve it by repaying your debts in a timely manner .A good credit score increases your chances of having the loan approved quickly and getting a low interest rate.

Asking yourself these questions will give you clarity on which loan provider you should borrow from. It will also help you choose a loan that addresses your needs. If you’re a medical professional in search for a loan, do explore Bajaj Finserv’s Loan for Doctors. These loans are feature-rich offering competitive rates of interest, flexible tenor and a line of credit, and online access to your loan account.

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