Know All About Professional Loan Eligibility, Documents Required and Interest Rates

India’s consumption growth continues to fuel the retail lending sector in the country irrespective of the age, and demography of the borrower. The increasing demand for durable consumer loans, credit cards, and professional loans reflect the growing preference for the unsecured credits.

These unsecured loans are especially beneficial for professionals like medical practitioners, engineers and chartered accountants who often find it challenging to meet their diverse financial requirements.

Loans for medical professionals

Doctors are increasingly taking to personal setups over full-time or contractual employment at larger bodies. Although, there are many doctors who liaise with hospitals and similar healthcare bodies, a modern private setup is a must-have.

However, there are overbearing costs of setting up a clinic, installing medical equipment, and hiring skilled employees. All these expenses and integrations are central to setting up a modern healthcare setup.

Catering to such budget crunches, reputed lenders offer their Loan for Doctors that come with multiple borrower-friendly features and provide a high credit amount. The sanctioned sum can be used to –

• Maintain the cash flow of the practice
• Hire skilled employees
• Set up and expand a clinic
• Install the top medical software available in India

Considering such beneficial financial assistance, availing a doctor loan is the best option for young medical practitioners. However, since availing credit is a crucial financial decision and needs to be taken only after a thorough comparison among the available credits in the market.

Here are a few other aspects that you need to consider before availing such professional loans –

1- Eligibility criteria for doctor loan

Leading financial institutions take into account the challenges that medical practitioners face to meet both personal and professional financial goals. Hence, they offer both secured and unsecured credits that require easy-to-meet doctor loan eligibility criteria.

Unsecured credits – personal and business loans for doctors

The credit amount offered in this case can go up to Rs. 30 Lakh and comes with instant approval and quick disbursal features. Here are the required eligibility criteria to avail such credits –

• MBBS – A minimum of 2 years of experience post qualifying the exam.
• MD/MS/DM – Does not require any minimum experience.
• MDS or BDS – A minimum of 5 years of practice post the qualification of this degree.
• DHMS – A minimum of 15 years of experience and needs to own either a house or a clinic of their own.
• BHMS or BAMS – At least 6 years of practice experience and must own a house or a clinic.

Secured credits – home loans and loan against property

Doctors can also avail secured credits that offer a loan amount of up to Rs. 2 Crore as a loan against property or home loan. The sum so acquired can be used to fund for big-ticket expenses like buying imported medical apparatus, build a profitable medical practice, purchasing a residential property, etc. Apart from providing the collateral, medical practitioners also need to meet the following required criteria to avail such secured advances –

• MBBS – A minimum of 3 years of experience post qualifying the exam.
• MD/MS/DM – At least 3 years of practice experience.
• DHMS – A minimum of 15 years of experience and needs to own either a residential property or a clinic.
• BHMS or BAMS – At least 6 years of practice experience and must possess a house or a clinic.

2- Documents required to avail professional loans

Keeping in mind the convenience of the borrowers, reputed NBFCs require certain basic minimum documentation as per the nature of the credit. It includes –

• KYC documents and the certificate of medical registration to avail an unsecured professional loan.
• KYC documents, certificate of medical registration, balance sheet, p/l account statement, ad copy of the mortgaged property papers to avail secured loans.

Apart from requiring such nominal documents, they also bring you pre-approved offers on numerous financial aids that include both unsecured credits like business loans, personal loans, etc., and secured credits like home loans. These offers make the process to avail such credit easy and quicker. You can take a look at your pre-approved offer by providing a few essential details like name and phone number.

3- Rate of interest of loans for doctor

Availing and repaying a doctor loan are both affordable and convenient, thanks to the attractive rate of interest that such credits come with. Owing to the low-interest rate on such loans, about 14-16% (unsecured), or 8.50-9% (secured), medical practitioners do not need to strain their monthly budget during repayment. 

Furnish a few essential documents, and avail professional credits from reputed lenders who are transparent about the loan processing charges and provide a hassle-free application process to avail such credits.