Doctor loans offered by various financial institutions across India are purpose-built to help medical professionals set up their independent practices or improve the existing ones. These advances, comprising a mixture of secured and unsecured loans, can also aid eligible borrowers to meet any number of personal financial requirements without hassle.
Financial products like these extend affordable credits against easy repayment terms that allow such professionals to realise their ambitions and become a part of India’s growing healthcare industry.
Moreover, the doctor loan eligibility and online application facility make it easier for individuals to avail this funding option. Nevertheless, one should keep in mind some pointers that can help him/her make an informed decision and find the perfect loan offer.
Things to keep in mind while looking for a doctor loan
Here are some vital pointers to be aware of while applying for credit for doctors –
- Check the rate of interest
Since interest rates determine the final outstanding, it is essential to review it before applying. Doing so will help individuals estimate their total debt and allow borrowers to plan their finances accordingly. Individuals can take the assistance of an interest rate calculator to get accurate results.
Borrowers can compare between different lenders to find their suitable loan offer.
- Apply with a healthy credit score
Credit profile, i.e., credit score and repayment history, signifies the creditworthiness of a borrower. It offers lenders a clear idea of how an applicant has performed over the years and how he/she has managed previous debts. Depending on this information, borrowers decide whether to approve a loan application or not.
A credit score is an important component of doctor loan eligibility criteria, and borrowers can undertake the required measures to improve their CIBIL score.
- Learn the eligibility criteria and documents required
Apart from the credit score, one should also keep in mind the other eligibility parameters of business credit for doctors.
Since these parameters vary from one lender to another, applicants should check lender specific criteria before applying. It will help them to know how to be eligible for a doctor loan.
Along with this, one should also focus on the documentation required to avail of this financial product. It includes the followings –
- Documents of the practice
- Personal details, i.e. KYC papers
- Bank account statement (both business and personal)
- Detailed business plan
Alongside these, specific lenders may ask for additional documents that one has to provide to complete this process.
- Review the repayment options
Understanding the repayment options before applying for a doctor loan is imperative. It will help prospective borrowers to plan their finances accordingly.
Additionally, leading financial institutions give their customers the liberty to choose a suitable repayment tenor at their convenience.
- Assess every cost
Every loan offer includes some additional charges, and a business loan for doctors is no different. Processing fee, late payment fee, part payment charges are a few of them, and not considering these charges can drive up the total cost of borrowing.
Therefore, before opting for a particular loan offer, consider these charges to avoid paying extra in future.
- Look for pre-approved offers
Pre-approved offers are specially designed to reduce the hassle and delays in the loan application process. It streamlines the system and saves time. Typically, these offers are available for existing customers as financial institutions already have their necessary details.
For instance, leading financial institutions like Bajaj Finserv extend pre-approved offers to their existing customers. These are available on financial products like business loans, personal loans, etc. Borrowers can quickly check their pre-approved offer by submitting their essential contact details.
Apart from these pointers mentioned above, one should carefully review the loan-related documents before signing. In case of any doubts, get them cleared and be aware of the terms of credit to avoid any future difficulties.
Meeting the doctor loan eligibility parameters is imperative to secure a loan successfully. Along with focusing on it, individuals should also keep in mind the pointers to review before taking a loan to invest and start their own practice or meet any personal requirement.