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29 Sep
  • Editorial Team

In a country like India where income disparity is high and medical supplies are not distributed equally, setting up a medical practice is a challenging job. We assume that getting a medical degree will help us settle our lives but the reality is different. It can be pretty challenging to set up your own practice and clinic, especially if you don't have enough financial backing. According to the World Health Organization (WHO), India needs at least 80,000 more beds across the country with adequate doctors as well. Currently, the number is far too low, i.e. one bed for every 879 people.

At such times, a doctor loan is the best option you can avail. A doctor loan is like a business loan available only for doctors. There are multiple ways in which a doctor loan can be utilized. We list down a few below.

  1. Buying new premises

Buying premises in today's rates can be extremely daunting, not to mention, a huge economic strain. New businesses have limited economic resources and buying premises can be especially straining.

  1. Hiring staff

The medical staff includes a lot of people from caretakers, technicians, support staff and junior and senior doctors. Staff payments might be difficult to fulfil initially and this loan can help bridge that gap.

  1. Working Capital

While budgeting, we also need to account for daily expenses required for smooth functioning of the hospital/clinic. You could use the Doctor Loan's Line of Credit facility to manage cash flows help your practice grow.

  1. Marketing

In a world driven by social media, marketing is absolutely essential to create an identity and brand recall in the minds of people who may want to use or know someone who may want to use to facilities your clinic/hospital can provide. Advertisements in local newspapers, radio channels, billboards, digital and social media marketing are costly but have the potential for high returns.

  1. Buying Necessary Equipment

Each speciality requires different equipment, which will constitute a major chunk of your budget. An orthopaedic doctor will require radiation equipment, whereas an ophthalmologist will require refractors and lens meter. Advanced equipment is necessary for speciality clinics. A doctor loan provides capital tailored to your needs.

So why should you go for a doctor loan?

There are numerous benefits of getting a doctor loan. Here is how you can benefit by taking this type of loan -

  1. Attractive interest rates

These loans feature affordable interest rates. A significant portion of your income can be saved by spreading payments and paying lower EMIs, resulting in lower financial burden.

  1. No additional fees or charges

Loans often have a range of additional hidden fees and charges which are billed at the time of signing the sanctioning letter, or getting balance transfer later during the tenor. However, a loan for doctors levies no such additional charges.

  1. Value-added services

Doctor loans are available to salaried and self-employed doctors. It requires lesser processing time, has higher approval rates, flexible tenors and attractive interest rates. There is a suitable doctor loan for everyone.

  1. Ready line of credit

This facility enables you to withdraw funds whenever you need them unto a certain limit. Interest is calculated on this withdrawn amount and not on the principal amount. You are required to pay interest amount monthly and the principal amount at the end of the loan tenure.

  1. Part/ Pre-payment facility

If you have surplus funds that you can divert to repayment of the loan, you can do at no extra charge. The only condition is that the part repayment amount must be equal to or more than 3 EMI's.

Types of doctor loans

There are different types of doctor loans available in the market. They help finance different kinds of expenses for doctors who have just set up their clinic.

  1. Medical Equipment Financing

This loan is designed to support medical practitioners who want to either establish their own setup or expand an existing facility, as well as establishments like hospitals, diagnostic centres, nursing homes, pathology labs, etc. who are looking at improving their services with better infrastructure and state-of-the-art machinery and equipment.

  1. Business Loan

If you are looking to renovate your clinic, hire more staff or buy new speciality medical equipment, you can choose a business loan for doctors. You can avail loans for all your professional needs with a flexible tenure of 1 to 7 years. It doesn't require any assets to be pledged and offers an open line of credit.

  1. Loan Against Property

This is a secured loan option that requires you to mortgage your residential or commercial property to receive funds. This loan also comes with the property search, property dossier and customised insurance services. With this loan, you can get funds ranging from Rs. 50 Lakhs to 15 Crores with a tenure of up to 15 years. It can be used for all property related expenses.

Do you meet the criteria? Let's understand

There are few criteria for the eligibility norms and documentation needed to avail a doctor loan. They are:


  1. Public, Private, Partnership, Trust, Society and Individual Doctors certified by recognized medical institutions.

  2. At least 5 years of experience in the field and a minimum of 3 years in the current business.

  3. Business profitability as per industry norms.

  4. Satisfactory credit and financial history.

Documents needed are:

  1. Verified audited financial statements and projections of the last three years.

  2. Profiles and KYC of Directors/ Partners/ Proprietor.

  3. Company constitution documents and registration certificates.

  4. Indian Medical Association Certificate.


Do not forget your dream of setting up of your own clinic or making it a top-class medical facility. It's that dream which kept you going. Now is the time to lead it to fruition. Thankfully, a doctor loan is easy to avail, quick to process and provides with ample liquidity and stability while setting up a flourishing practice. So what holding back your dream?

In case you have more questions to ask us about how to avail a doctor loan, we are always there to help you out. Write to us at or leave a comment below.

Did You Know


The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.

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