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Types of Loans Available for Doctors in India

By The Assam Tribune

For doctors after acquiring their medical degree, there is a requirement for capital assistance to set up their clinics, hospitals, etc or for maintenance of personal errands. Banks and financial institutions in India have customised loan options to cater to different financial needs of the customers.


A doctor or medical practitioner who is looking for financial assistance from banks or financial institutions can check out the doctor’s loan scheme offered by them. They can get a business loan, home loan, etc. under the doctor’s loan scheme at reasonable interest rates with a flexible repayment tenure.


A doctor’s loan can be used for a variety of purposes -

- Working capital

- Infrastructural development of hospitals, clinics, etc.

- Establishment or expansion of the hospitals, laboratories, etc. premises

- Purchase of medical equipment and machinery


Types of Loans Available Under Doctor’s Loan Scheme

- Personal Loan

Unlike any other personal loan, the personal loan for doctors offers financial assistance for various purposes like renovation, weddings, education, etc. This loan amount can be used as per their comfort and convenience. Some of the key features of personal loans for doctors are -

- Loan Amounts of up to ₹55 Lakh

- Flexible Fund Utilisation

- Option to select the repayment tenure between 12-96 months

- Zero Collateral

- Minimal documentation


- Business Loan

Doctors can apply for a business loan in India for infrastructural development or expansion of medical facilities in their clinics, hospitals, etc. The loan amount can be used for a variety of purposes like purchasing medical equipment, machinery, etc. Key features of the business loans for doctors are -

- Loan Amounts of up to ₹75 lakhs

- Option to select the repayment tenure between 12-48 months

- Life insurance coverage

- Zero Collateral

- Minimal documentation


- Vehicle Loan

Another type of loan scheme available under a doctor’s loan is a vehicle loan. Ambulances and other sorts of vehicles that help in facilitating medical services to patients can be financed under vehicle loans. Some features that make a vehicle loan an attractive option -

- Financial assistance for up to 90% of the on-road price of the vehicle

- Option to select the repayment tenure of up to 8 years

- Pocket-friendly EMIs

- Zero Collateral

- Minimal documentation


- Loan Against Property

A loan against property is a type of loan under the doctor’s loan scheme that any doctor can avail of to purchase a property or land. Property loans are beneficial for doctors to purchase land or properties for personal as well as commercial uses. Loan against property offers benefits like -

- Loan Amounts of up to ₹5 Crore

- Option to select the repayment tenure of up to 18 years

- Tax benefits

- Zero Foreclosure charges

- Fund disbursal within 3-5 working days


Eligibility Criteria for a Doctor’s Loan

There are some basic eligibility criteria that you must fulfil to apply for any type of loan under the doctor loan scheme -

- You should be a native of India

- You should be at least 18 years of age

- You should have a stable source of income


Documents Required for Doctor’s Loan

- Passport-size photographs

- Identity Proof - Aadhar card, PAN card, etc.

- Address Proof - Passport, Utility bills, etc.

- Income Proof - salary slips, income tax receipts, etc.


**Note - The above-mentioned eligibility criteria and document requirements might change with the norms and policies of the lending institution.


Doctor’s Loan Application Procedure

Follow the below-mentioned steps for a hassle-free application procedure -

- Go to the official website of the lending institution

- Under the ‘Loans’ section, select the loan category

- Fill in all the mandatory details in the form

- Attach mandatory documents and submit the form

- Once the application is authenticated and verified, the company executive will connect with you on the registered contact details


Upon discussion and completion of paperwork, the loan amount will be instantly disbursed into your bank account.


FAQs

- Can I opt for a Flexi loan type under Doctor’s loan?

Yes, you can opt for a Flexi loan type under a doctor’s loan. Flexi loan charges interest only on the utilised loan amount by the borrower and not the total loan amount making it a pocket-friendly affair.


- Can I take a loan to recruit additional staff in my hospital?

Yes, you can take a loan to recruit additional staff in the hospital and fulfil other working capital requirements.


- Can I have a non-medical co-applicant in my doctor’s loan application?

Yes. you can have a secondary non-medical co-applicant in the doctor’s loan application, however, it solely depends upon the discretionary powers of the lending institution.


- Can I take multiple loans to fulfil my different financial goals?

You can take around 2-3 loans, to fulfil different financial goals, however lending institutions might charge additional interest by analysing the repayment capacity of the applicant and the risks involved.


- I want funds to construct a new ward in my hospital, should I take a personal loan or a business loan?

While personal as well as business loans both sanction funds for a variety of purposes. You must evaluate other parameters like interest rates, loan amounts, loan tenure, etc in both cases and then make a decision.

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