5 Things to Know When Applying for a Loan for Doctors
The healthcare industry in India is moving ahead at a much faster pace as compared to the past. One of the main reasons for this is the rapid advancement of technology. Updating to the latest technology can be one of the steps to build a profitable medical practice.
Eventually, purchasing the latest medical equipment may require substantial investment. Arranging the required funds may be difficult at times. In such situations, availing a loan for doctors may be quite essential.
A healthcare finance or medical professional loan is an unsecured loan designed specifically for healthcare personnel. It is a type of advance which is issued based on the income and credit history of a medical practitioner. Before opting for such a loan, there are certain things which you should consider.
5 things to know before availing a loan
An individual needs to know the following before opting for a loan.
- Interest rates
A doctor loan generally comes at a competitive rate of interest. Generally, the rate of interest is lesser in secured loans compared to unsecured ones. However, the rate of interest may vary with lenders. It is essential to compare the rates available and chose a lender who offers the least interest rates on doctor loans.
- Charges
Following are some of the charges which may be levied.
- 25% to 3% of the loan amount as processing fees.
- EMI bounce charges.
- Penal interest charges.
- Secure fees.
- Foreclosure charges.
Before applying, read the terms and conditions carefully to know all the associated charges.
- Credit score
When you apply for a loan for doctors, lenders check your credit score. You must possess a CIBIL score of 750 or more to successfully avail the best features available with an unsecured loan. It will be wise to repay all existing debts before applying for a new loan. This is pull up your credit score and make you more creditworthy. Therefore, it is essential to know what to do if the business credit score is low.
- Select the best deal
Apart from interest rates and charges, there are multiple factors to consider before selecting a lender. Features like the loan tenor, disbursal time, etc. must be known to you in advance. Only then will you be able to decide which institution best suits all your requirements.
- Type of loan you need
It is one of the most essential points to consider. Before you apply for credit for doctor, analyse your requirements and determine the type of loan you need. For example, in case you are taking the loan to buy costly equipment, renovate your office space, expand your office premises, rent a new office space or to increase patient engagement etc. an unsecured loan may not suffice the funding needs. A loan against property might be the best possible solution.
A loan for doctors can come in handy if you are thinking of updating your business model in sync with the latest technology. The advent of nanotechnology has introduced the healthcare sector with various software platforms of patient engagement. This has improved the quality of treatment while reducing the time consumed.
There are a lot of financial institutions which provide doctor loans to meet your business and personal funding necessities. Lenders require doctors to meet simple eligibility criteria and provide minimal documents to avail these loans.
