Thankfully, with the evolution of Non-Banking Financial Corporations (NBFCs) and launch of many government initiatives, there are a range of credit funding options available for young medical professionals in India. Also known as ‘doctor loans’, these products are designed to cater unique financial demands of physicians and other healthcare professionals.
Read more to know about the financial benefits of professional loan for doctors and how it can help them in the long run:
>> Quick Approval Process
Since doctor loans are meant exclusively for medical professionals, lenders usually follow a quick-fire approach for approving and disbursing the loan amount. It means that the applicants do not have to wait for long to get access to finances required for setting or expanding their healthcare clinic, buying medical equipment etc. Usually, doctor loans are disbursed by the lenders within 72 hours after receiving the application.
>>Easy Eligibility Criteria
Lenders usually keep simple eligibility criteria and follow a lenient approach when it comes to approving doctor loan applications. Though the eligibility criteria vary from lender to lender, usually they ask for a minimum level of experience as a medical practitioner and handful of documents such as experience certificate, KYC, and bank details etc.
>> No Collateral or Guarantors Required
Another distinct advantage of availing a doctor loan is that these loans are collateral-free, unlike other secured loan avenues like home loans, loan against properties, car loans etc. It means that the borrowers not required to put their personal or professional assets on the line to avail the finances. Also, since these loans are unsecured, it can be availed by the doctors easily and quickly.
>> Affordable Rates of interest
Usually, doctor loans interest rates are lower when compared with other unsecured lending avenues such as personal loan, credit cards etc. The reason behind the lenders quoting lower interest rates for these loans is that the doctors usually have a good track record of paying back loans and hence, are far less likely to default.
>> Pre-Payment Penalties not Applicable
Since doctors have a good track record of loan repayment, lending institutions usually allows pre-payment facility on doctor loans without any extra charges or penalties. This means that in case a doctor earns adequate revenue within a short span of time, he or she can pay back the loans before the stipulated time and save a substantial amount of interest outgo.
>> Multi-Purpose Loans
Doctor Loans once taken can be used by the doctors to build or renovate chambers, set-up medical clinics and buy new healthcare equipment. Additionally, these loans can also be used for meeting other personal financial requirements such as buying a home or funding of education or training.
Doctors can even apply for secured doctor loans to finance the purchase of precious medical apparatus such as CT scanners, Sonography machines, X-Ray machines, MRI machines etc. These assets are fixed assets that can generate long term revenue for them.
>> Flexible Repayment Options
Generally, lending institutions provides the flexibility to opt for a convenient tenor according to the loan repayment capabilities of the borrower when it comes to doctor loans. This means that they can divide all their expenses into easy EMIs and repay them conveniently over a preferred duration of the loan.
Also, many lending institutions allows the borrowers to choose between fixed or floating interest rate on doctor loans. This feature is particularly relevant in the case of unsecured Loans because usually, these loans are taken for a short tenor.