doctor loan

A doctor who is into independent practice as a medical practitioner needs funds like any commercial enterprise to run a clinic. With the advancement in technology and new modes of treatment, clinics need regular upgrade, expansion, and intake of the workforce to enable the doctor to engage in his practice with provisions for the best facilities for treatment of patients. Thus financial institutions, both the conventional and the new-age NBFCs have designed a doctor loan to cater to the particular needs of a medical professional.

What is the need for a loan for professional doctors?

The need of every doctor is different, whether he is setting up his independent practice or expanding his already existing clinic for better treatment options. The primary criterion is to see that the practice thrives. Accordingly, a doctor business loan may be needed for the following:

  1. Purchasing/Constructing/Renting Clinic premises.
  2. Purchase or Upgrade of equipment
  3. Furnishing of the clinic.
  4. Hiring trained staff.
  5. Funding attendance of Seminars and Conference.

Salient features of doctor loan:

Doctors are professionals who need funds to pursue the independent practice, and it is inherent to any professional activity. Thus instant loan for doctors both personal and business is eminently required for the establishment and growth of the successful practice. While conventional lenders like banks have different customized schemes for doctors, the new-age NBFCs like Lendingkart are charting a course free from the cumbersome procedures generally prevalent. Digital NBFCs offer a host of benefits to attract Doctors to avail their loan products suited to the present-day requirements. Some of the redeeming features are:

  1. Hassle-free digital application process.
  2. Competitive Doctor’s loan interest rate
  3. Quick loan processing.
  4. Generous collateral-free loan amount.
  5. Simplified documentation.
  6. Transparent transactions without hidden cost.

Eligibility criteria for Doctor’s Loan for clinic:

For a Doctor, the primary requirement is to check for the eligibility amount using the Doctor Loan calculator in the digital interface provided by all lenders. It not only projects financial implications but also draws a picture for the borrower of the contours of the loan sought.

The basis for any business loan to a professional is the requirement of the suitable qualification. The other criteria for Doctor Loan eligibility may vary from lender to lender. The standardized criteria may be enumerated, thus covering a wide range of lenders, including Lendingkart.

  1. Must be an Indian citizen over 25 years of age.
  2. Appropriate professional qualification degree and post qualification experience as under:
    1. Medical Graduate:
      1. MBBS
      2. Minimum 5 years post qualification experience.
    2. Post Graduate and Super Specialists:
      1. MD, MS, DM and MCH.
      2. Post qualification experience not required.
    3. Dentist:
      1. BDS or MDS
      2. Minimum 5 years of post-qualification experience
    4. Homoeopathy Doctors:
      1. BHMS and DHMS
      2. Six years and 15 years post qualification experience respectively and owning a house or clinic.
    5. Ayurvedic Doctors:
      1. BAMS
      2. Six years of post-qualification experience and owning a house or clinic.
  3. Registration from an appropriate regulating authority for pursuing a medical practice in India. For medical graduates, it is the MCI or the IMA, which is the registering authority.
  4. Minimum annual income should be Rs.1L per annum. Others define a higher income criterion for eligibility.
  5. The minimum operational life of 2 years, which is low at six months in the case of Lendingkart.

Documents required for Doctor Business Loan:

Most NBFCs inclusive of Lendingkart have a liberal outlook towards documentation seeking bare minimum as essential documents. Accordingly, the set of documents required are:

  • KYC documents comprising of valid ID, Residence Proof, PAN card and Aadhaar card.
  • IMA / MCI Registration Certificate or appropriate as per qualification.
  • Bank statements of the preceding six months
  • ITR and statement of computation for the previous two years.
  • Form 16A of the last two years.
  • Details of any other loans availed of in the past or running currently.
  • Any other document sought by the lender.

How to apply for doctor’s Loan for Clinic:

As already stated, all lenders provide a digital interface for the loan application process. While for the banks it is merely an expression of interest, at Lendingkart the entire cycle is online, needing maximum 72 hours for completion of the whole cycle. The process can be accomplished in a few simple steps.

  1. Apply for a loan online with inputs covering personal, proposed loan and financial details.
  2. Upload requisite documents in digital format.
  3. Await loan approval after evaluation of credentials and vetting of documents.
  4. The amount is credited to the account after receipt of acceptance from the borrower.

Fees and Charges for Doctor Business Loan:

Lendingkart uses proprietary methods for calculation of the eligible loan amount and interest to be charged thereon. Some of the key features to determine the Doctor’s loan interest rate are.

  1. Amount of loan – Higher amount attracts a lower interest rate at Lendingkart.
  2. Loan tenor – Longer the tenor, lower is the interest
  3. CIBIL ranking – Low ranking will increase the rate of interest
  4. Balance sheet – Good margins have a positive effect.
  5. Age of business – Longer periods draw discounted rates.

Having a clear indication of the applicable rate of interest also needs attention to other cost and conditions involved. Let us check it:

Relevant fees and charges for a loan for professional Doctors

Rate of Interest

From 1% to 2% per month

Processing Fee

One time 1% to 2% of the loan amount

Pre-Closure Charges

Nil

Loan Tenure

Maximum up to 3 years

Amount of loan

Collateral free up to Rs.50L which is Rs.1C at Lendingkart

Type of Loan

Term Loan or Line of Credit (Overdraft)

Repayment Method

Generally EMI. Additionally fortnightly at Lendingkart

Doctor Business Loan FAQs:

1. Who can apply for Doctor Business Loan?

Only professionally qualified Doctors pursuing independent medical practice or running a clinic are eligible to apply for the loan.

2. Are only Allopathic Doctors eligible for Doctor Business Loan?

Contrary to the common notion, professionally qualified Dentists, Homoeopaths and Ayurved Doctors are also eligible for the loan, subject to meeting other norms

3. How soon is the Doctor loan disbursed?

It is almost like an instant loan for Doctors which is disbursed in a maximum 72 hours.

4. What is the maximum age criterion for a Doctor Business Loan?

Invoice Discounting will work for you if you have: It is 65 years at the time of liquidation of loan.

5. Is there any minimum turn over clause for eligibility?

Yes, it should be over Rs.90K per quarter.