In India, the Government spends around 1.5% of GDP on health. Hence, due to this low public expenditure, most people rely on private health care facilities. Furthermore, India is expected to add around 10 lakh doctors to serve its citizens efficiently to reach the world average.
Thus, doctors might need to come up with a private clinic to provide the correct medical facility. To meet its expenses, medical professionals can avail specific financial options like a loan for doctors to open clinic.
Things to consider while availing a loan for doctors to open a clinic
1. Document requirement
- Identification documents like Aadhaar Card, Passport, or Driving License.
- PAN card.
- Degree of qualification.
But, it must be noted that this requirement will vary with lenders. Also, a prospective borrower may need to submit additional documents while applying, depending on their application.
But, to avoid rejections, an applicant must need to know about loans for doctors.
2. Eligibility criteria
Before applying for a doctors loan, it is important to check the eligibility criteria thoroughly to avoid rejection. Individuals need to know how to be eligible for a doctor loan and make a sound repayment plan.This will make the application process simpler and hassle-free. The criteria to consider for loans for doctors are as follows –
- CIBIL score
This is one of the primary factors behind rejections. Hence, it is advised to keep the CIBIL score on a higher side, preferably 750 or higher. This also signifies a candidate’s creditworthiness. But if an applicant has a low credit score they must know what should doctors with a low credit score should do to avail the loan.
- Income
To meet the eligibility criteria, an applicant should be a salaried doctor. Although the minimum salary is Rs.25,000, this may vary as per city. To get the loan sanctioned without any hassle, a higher income is preferable.
- Existing debts
If an applicant has existing debts, this can adversely affect their application. Most lenders prefer a clean debt repayment history, as this projects an applicant as a disciplined borrower.
- Applicant’s age
Although the age bracket for application is 25 -65 years, it is important to know that a young applicant is most likely to get the loan approved faster than his/her older counterpart. This is because a younger applicant has more time to repay his/her loan than a person nearing his/her retirement age.
Meeting these eligibility will positively increase the speed of the application process. But, there are some additional factors to remember which expedites the loan application process for dental clinic setup.
3. Repayment tenor
Reputed financial institutions offer flexible repayment tenors to borrowers. Individuals opting for a shorter repayment tenor will have to pay higher EMIs than those choosing a longer tenor. However, choosing a shorter tenor decreases a borrower’s total interest outgo.
Therefore, to decide on an ideal repayment tenor, borrowers can use an EMI calculator. This easy to use online tool helps calculate monthly installments according to the selected loan amount and tenor.
Points to remember before applying for a loan for doctors
- Type of loan
Knowing the exact financial need beforehand will significantly lower rejection chances for loan applications. An applicant can either opt for a secured loan or an unsecured loan. In the case of a secured loan, the property is kept as collateral. But, on the other hand, an unsecured loan is disbursed without collateral. Borrowers with a failing credit profile can still opt for both loan types. However, in the case of unsecured loans, only bad credit loans may be offered, and these come with a bigger interest.
- Knowledge of exact loan amount
Before applying for a doctors loan, an applicant must know the loan amount for repayment ease. However, to know the loan amount, most lenders advise making the use of a loan EMI calculator available online. This will ease financial management and help control expenditures as per EMIs.
- Opt for flexi or term loan
This totally depends on the financial need of a prospective borrower. If the exact loan amount is known to a borrower, he/she can opt for a term loan. But, if the exact loan amount is however volatile, they can opt for a flexi loan.
To know more about specific eligibility and to determine loan amount before application, one can use a loan eligibility calculator for ease.
Although a simple online tool, one must know how to use it.
Steps to use a loan eligibility calculator
Step 1: Visit the lender’s website and click on the eligibility calculator.
Step 2: Provide details regarding the city of residence, date of birth, monthly income and expense.
Step 3: After submission, this calculator will show the eligible loan for doctors to open the clinic.
Leading financial institutions in India like Bajaj Finserv extend pre-approved offers to expedite the loan application process. These offers are available on selected financial products like business loans, personal loans and others. Check your pre-approved offer by entering your name and contact number.
Read Also: 5 Reasons to Get A Loan for Small Business in India
Hence, before applying for a loan for doctors to open clinics, one must carefully consider the factors mentioned above to avoid rejections.
