Things You Should Consider Before Applying for Doctor Finance
In FY 2020, the Indian government spent around 1.29% of the country’s GDP on healthcare. Although this figure represents a significant improvement from past years, it is still too low for a country as vast and densely populated as India.
Due to a comparatively low investment in healthcare, doctors in the country often face financial challenges to secure the necessary funding. Fortunately, with options of financing for doctors available to this demographic, a practitioner can establish private clinics to serve society with ease.
Nevertheless, to ensure comfortable repayment of such credits, an applicant should consider several factors before applying. Listed below are some things that such a borrower should determine beforehand.
Type of loan
Finance for doctors can be of different types, each suiting a specific need or situation. In general, most lenders offer the following to medical professionals –
- Personal loan for doctors
- Home loan for doctors
- Loan against property for doctors
- Business loan for doctors
One must remember that personal loans and business loans are unsecured credits for doctors, while the other two options fit the secured loan portfolio. Understanding which financial product is perfect for which situation is crucial. For instance, the only reason to opt for a housing credit would be to purchase a property. However, reasons to take business loan for doctors can be diverse, ranging from establishing new practice to hiring more employees.
Quantum of loan necessary
Depending on the purpose of borrowing, doctors may require loans of various ticket sizes. For instance, financing an establishment or expansion of their practice may require a substantial quantum of funds. On the other hand, funding a family vacation with a personal loan for doctors may not require availing such considerable sums. Thus, before submitting your application, ensure you know exactly how much financial assistance you require.
Eligibility criteria for financing for doctors can vary from one lender to another. Additionally, these requirements can differ based on whether one is opting for a secured or unsecured loan. Understanding how to be eligible for a doctor loan can help one avail funds whenever necessary. Meeting or surpassing these requirements enables an applicant to avail the best terms on these credits.
An essential part of the eligibility criteria for such professional loans, one must pay special heed to his/her credit ratings. Today, most financial institutions seek applications from individuals with scores ranging from 750 to 900. An individual with lower scores may be allowed to avail these financing options but at higher rates of interest. A better alternative is to improve your CIBIL score before submitting applications, through timely repayment of existing debt and maintenance of credit utilisation ratio within desirable limits.
Interest rates of doctor loan
Interest rates on your credit determine the EMIs you will service through the loan tenure. Thus, you must consider this factor before proceeding with an application. Comparing the available rates online should provide you with the necessary idea when it comes to choosing the most suitable lender.
Reputed lenders like Bajaj Finserv provide credits at competitive rates, along with pre-approved offers to expedite the loan application procedure. These offers are available on a range of secured and unsecured financial products, such as personal loans, business loans, and more. You can check these pre-approved offers by submitting just a few crucial details.
Flexibility in repayment tenure is another factor to consider, since you may need to take advantage of a longer repayment period for larger loan amounts. For unsecured forms of credit, tenures may range for up to five years. Secured doctor loans may offer much longer repayment terms, with some options ranging up to 20 years.
Unsecured financing for doctors comes with no end-use restrictions. Thus, after availing such funds, one can use the same to fulfill any requirements without needing to notify the lender of the purpose. From funding your child’s education to helping you plan a vacation abroad, these hassle-free credits offer just the kind of financial assistance a doctor may require. Practicing physicians often face a lack of corpus while establishing or expanding their clinics. Doctor loans are ideal financing options for such requirements, offering hassle-free credit to healthcare professionals at affordable rates.