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Being a doctor is a demanding profession especially in a country where the healthcare services need a great deal of improvement. While tense situations and gruelling schedules are conspicuous parts of any medical practitioner’s life, what remain hidden from the outside world are a doctor’s financial needs. Doctors also need capital to fulfil several professional and personal ambitions like opening their own clinic or buying a new home or taking a vacation. For those who need funding, financial institutions offer special loans meant only for doctors called Doctor Loans. They give a set of benefits to the medical practitioners that the regular loans cannot provide. A popular sub-category within doctor loans is Personal Loans for Doctors because of benefits like the huge loan amount, better interest rates, longer tenure, and easy EMIs. So, let’s learn more about how these loans can save the saviour.
Different types of doctor loans:
Doctor Loans are divided into sub-categories based on the specific purpose they serve like the following:
It is meant for doctors who are planning to start their own clinic, or expanding or renovating the existing ones. Medical practitioners can use this loan to make their clinic more technologically advanced, to provide the best healthcare services to patients or to maintain positive cash flow. Though the loan amount and interest rates depend on various factors, lenders are likely to offer up to INR 30 lakhs with a flexible repayment tenure.
Medical Equipment Financing:
Doctors need state-of-the-art machinery to improve the accuracy of diagnosis. But these machines are only getting expensive with specialized equipment that can cost in crores. To shell out such a huge amount is beyond an individual's budget. Thus, a medical equipment loan can get medical practitioners the money to buy these machines. These loans are secured in nature as the equipment itself is treated as the collateral.
These loans help the doctors meet personal expenses like meeting wedding or vacation expenses or funding kids’ higher education or simply for debt consolidation. Doctors can get up to INR 30 lakhs in this scheme with a repayment tenure ranging from 12 to 84 months.
Buying a house is not a luxury but a necessity. To help doctors move out of rented flats to their own apartment or to buy a bigger house for family members, a home loan for doctors offer up to INR 2 crores with the repayment tenure as high as 240 months.
Loan Against Property:
A doctor can get up to 60 percent of the market value of any residential or commercial property in his/her name as a loan amount. Since it’s a secured loan, the rate of interest is quite low.
Personal Loans to Save the Saviour
A popular type of doctor loan is the personal loan for doctors. Let us learn more about it.
What are Personal Loans for Doctors?
Though it is called a personal loan, the loan amount for the doctors loans can be used to buy a home or medical equipment also. The reason that makes personal loans popular is that there is no restriction on its use.
Secondly, these are collateral-free loans, which means you don't need to put any asset on the stake. Some of its other benefits include availability of a bigger loan amount compared to other loans, no need of paying additional costs like foreclosure and repayment fees, availability of both fixed and floating type of interest rates, long repayment tenure, minimal documentation, hassle-free approvals, and quick disbursal of the loan amount. They also come with multiple repayment methods, such as NACH, PDC, etc.
Why would Doctors need Personal Loans?
It could be for varied reasons - from meeting the expenses of a wedding, renovating the house, taking a long pending vacation. However, a large chunk of the loan is usually diverted towards business purposes, as a self-employed doctor needs to maintain the inventory stock for daily requirements, buy advanced equipment for his clinic, keep his nursing homes and diagnostic centres spick and span, and hire staff members. Apart from managing these needs, personal loans also help in taking care of past loan by debt consolidation, which therefore leads to managing present financial needs and at the same time making investments for a secured future.
How to apply for Personal Loan for Doctors?
First, zero in on why you need a loan and how much do you need.
When you have a fair idea, survey the market to figure out which lender is providing the best deals.
Apply for the loan by mailing, calling or meeting the lender. The lender would then check your eligibility criteria like nationality, professional experience, age, income, and negotiations will take place over loan amount, interest rate, and repayment tenure. Every financial institute wants a doctor as a customer so it is your prerogative to bargain hard.
In the end, a verification process will take place where you need to submit the documents like age, income, employment, residence proofs. Then, in a day or two, the loan amount will be sanctioned to your account.
Since healthcare is a booming industry, financial institutions prefer having doctors as clients. As a result, they have understood the financial needs of the medical practitioners and have designed special kind of loans for them. As mentioned earlier, these loans are more profitable to the borrower and play a big role in making his/her life easier. If you are a doctor, then you must make most of these exclusive benefits meant only for those in the medical profession and fulfil your personal and professional goals.
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.