Planning To Apply For A Doctor Loan? Check Out Your Eligibility And Required Documentation
For many young doctors, the first obstacle is setting up their medical practice. Then comes the hurdle of keeping the practice afloat. Sometimes, this means expanding the clinic. At other times, it involves upgrading or replacing medical equipment. Each of these requires a large amount of capital. Some doctors have this surplus on hand. Many others do not. And that is when a Loan for Doctors comes in handy.
A loan for doctors is a kind of business loan targeting qualified medical practitioners. Depending on your needs, you could get
- A doctor loan for clinic expansion, or
- A loan to purchase medical equipment
The former could help you grow your business and meet rising demand. The latter may help you set up a new practice or replace obsolete equipment.
Doctor Loan Eligibility
When extending loans for doctors, Indian banks and financial institutions set some eligibility criteria. So, if you are applying for one, you will have to tick certain boxes. Bajaj Finserv, which provides doctor loan schemes, requires you to meet the following conditions.
1. Do you have the right educational background?
Not everyone is eligible to get a professional loan for doctors. You would need to be either a graduate or a post-graduate in medicine. Graduate doctors should have either an MBBS or a BDS degree. For post-graduates, MD, DM, MS, MCH, or MDS degrees would work.
2. Do you have the right experience?
To get a loan for doctors, you cannot be fresh out of university with limited work experience. Post-graduate doctors need to have at least one year of post-qualification experience. For doctors with just a graduation degree, two years of post-qualification experience is necessary.
3. Do you own a house or clinic? Where is it located?
Another aspect that affects doctor loan eligibility is whether applicants own a house or clinic. The location must be in a city or town where Bajaj Finserv operates.
4. What are your monthly earnings like?
As is the case for other kinds of loans, there are basic income requirements for a medical loan. Moreover, the requirements vary depending on where you live. So, doctors living in Tier-1 cities need a gross monthly salary of Rs 75,000 to get a doctors loan. The income level drops to Rs 40,000 for applicants from Tier-2 cities.
You would need to submit documents to support your doctors loan application. Here is the standard list of documentation from Bajaj Finserv.
1. Income proof:
You would need to provide your Form 16 for the past two years and your three latest payslips. Bank statements of the past three months showing salary credit would be necessary as well.
2. Education proof:
You would have to furnish all relevant educational qualification certificates. So, keep your graduation and post-graduation mark sheets and certificates handy.
3. Identity and address proof:
This includes government-approved documents proving your identity and address. For example, your Aadhaar card, voter ID, and driving licence would work as identity proof. For address proof, you could submit copies of your ration card, passport, or utility bill, among others.
4. Proof of property ownership:
A loan for doctors from Bajaj Finserv does not require any collateral. But you would have to furnish some proof of property ownership. This could include your home or your clinic. It could even be your parents’ home.
In some cases, you may have a co-applicant for the loan. This co-applicant must provide government-approved identity and address proof. They must also furnish a proof of relationship with the main applicant.
A professional loan for doctors is a handy financial device. It can help you to extend your medical practice in order to provide better healthcare. A Doctor Loan comes with a quick approval process and reasonable interest rates. So, there is no need to wait until you save up enough capital.
Do you plan to get a medical loan anytime soon? If so, keep in mind the eligibility criteria and documentation requirements. This will make the application process a lot smoother.