Doctor Loan

What is a Doctor's Loan?

A doctor loan is a special Loan for professional doctors who own a clinic or are working in a government/private clinic, hospitals, or as consultants. A Doctor Loan can be availed of to serve the financial needs of doctors who are looking to expand their scale of operations.

The following are the benefits of a doctor's loan:

• Doctor's loan interest rate is low as compared to rates offered to other self-employed professionals.
• Fast turnaround and loan approval within hours.
• No guarantors are required.
• End-use includes the construction of a clinic, renovation, or purchase of medical equipment.
• Flexible loan tenure. Tenure up between 12 months to 96 months.
• The part-prepayment option is available.
• Minimum documentation and quick approval based on basic KYC, income proof, and credit score.
• Most financial institutions offer pre-approved loans to doctors.

The eligibility criteria to qualify for a doctor loan are as follows:

• The applicant must be a Salaried Doctor
• Should be a Registered Medical Practitioner/Physiotherapist in the age group between 25 to 65 years with a minimum experience of 2 to 5 years in the field depending upon the bank from where the loan is availed.
• In the case of Partnership firms, 50% of the partners should be doctors
• In the case of a Company, 50% of the share should be owned by doctors
• Hospitals that are being run by Trusts/Companies/Institutions can also avail the loan
• Professionals managing Medical Diagnostic Centres and Testing Labs are eligible
• Where the loan amount is up to 10 Lakhs close relatives i.e., spouse, mother, son or daughter with regular income can be co-applicants even if they are not Doctors. However, the number of co-applicants should not exceed two.
• Applicants should have an IMA (Indian Medical Association) membership number or any registration allowed by the Indian Government.
• Should have a profitable existence for two years
• A minimum annual income of 1 Lakh as per ITR
• The applicant's Credit Score should be above 700

*The eligibility factors may vary from bank to bank

• KYC documents of authorized signatories, such as Aadhar Card, Voter ID, Passport, and Driving License.
• Medical registration certificate
• Education qualification certificates
• Income documents, such as ITR for the last 2 years, and salary slips of the last 2 months (if salaried).
• Bank account statements of the last 3 months of salary account (if salaried) or current account (if you have an independent practice).
• Permanent address proof
• Property ownership proof (office or residence).
• PAN Card

Following are some of the degrees that are required to apply for a doctor loan:

• MD/DM/MS for Super Specialist Doctors
• MBBS for Graduate Doctors
• BDS/MDS for Dentists
• BHMS/BAMS for Ayurvedic and Homeopathic Doctors
• DHMS for Homeopathic Doctors

Multiple categories of doctors can avail the loan from a bank or any other financial institution.

The categories are listed below:

• Salaried doctors: Medical practitioners with a regular source of income along with 5 years of experience in the field can apply for the loan under this category.
• Self-employed doctors: Doctors operating as proprietors in a proprietorship firm, as a partners in a partnership firm or LLP and as Directors in Private Limited Companies can apply for loans under this category.
• Loans for hospitals and nursing homes: Loans are given to set up a new clinic/hospital/nursing home or for renovation/repair of the existing premises under this category.
• Loans for diagnostic centres: Loans are given to set up to doctors who wish to set up diagnostic centres and pathological laboratories.
• Loans for specialised clinics: These loans are taken by doctors to set up specialised clinics like Dermatology clinics, Dental clinics, and Ophthalmic Centres.

Doctor Loans can be utilised for the following purposes:

• Dentists can use the loan for the purchase of dental implants.
• For orthopaedists, the loan can be utilised for various replacements/implants for shoulder/knee/hip/spine, etc.
• The loan can also be used for the purchase of equipment.
• For setting up a clinic, nursing home, hospital, veterinary hospital, pathology labs, and drug store.
• For purchase of ready-built premises for hospital/clinic or construction of clinic/hospital in the self-owned site or purchase of land for construction of hospital/clinic thereon.
• If the loan is for purchase of land and construction thereon the value of the land shall not exceed 50% of the project cost.
• In the case of the purchase of the ready-built building, the age of the building should not exceed 30 years. The residual life of the building should be at least 5 years more than the repayment period.
• For the purchase of computers, vehicles, ambulances, furniture & fixtures, etc.
• For expansion/renovation/modernization of existing premises.
• For including state-of-the-art technology for the existing establishment.

Secured Doctor Loans

Secured loans for doctors are mortgage loans. This can be availed by both salaried and self-employed doctors against the mortgage of residential or commercial property.

Banks and other financial institutions offer this loan to doctors to set up a clinic, or nursing home or buy medical equipment. Equipment loans are available as secured loans which are against the hypothecation of equipment purchased out of the finance.

Some of the equipment that can be purchased with a doctor's loan are:

• Sonography Machines
• CT Scanners
• MRI Machines
• X-Ray Machines

Below are the top banks that offer personal loans to doctors:

Bajaj Finserv - Loan for Doctors:

• Loan amount: Up to Rs. 35 Lakhs
• Tenure: 12 - 96 months
• Rate of interest: 14% - 16%
• Processing fee: Up to 2% of the loan amount + taxes
• Prepayment Charges: 4% + applicable taxes

Fullerton India -Personal Loan For Doctors

• Loan amount: Up to Rs. 30 Lakhs
• Tenure: 12 - 60 months
• Rate of interest: 11.99% - 36%
• Processing fee: Up to 3% of the loan amount
• Prepayment Charges: 0% to 7%

IndusInd Bank – Professional Loans to Doctor

• Loan amount: Rs. 5 Lakhs - Rs. 35 Lakhs
• Tenure: 12 - 48 months
• Rate of interest: 12.50% - 15.52%
• Processing fee: Up to 2% of the loan amount
• Prepayment Charges: 4% + applicable taxes

Punjab & Sind Bank – Doctor Loan

• Loan amount: Rs. 5 Lakhs - Rs. 5 Crores
• Tenure: Up to 7 years
• Rate of interest: 8% - 8.50%
• Processing fee: 0.25% for loans up to Rs. 50 Lakhs and 0.50% for loans above Rs. 50 Lakhs and up to Rs. 2 Crore.

Tamilnad Mercantile Bank – Doctor Loan

• Loan amount: Up to Rs. 4 Crores
• Tenure: 1 year to 7 years
• Rate of interest: 10.15% - 11.45%
• Processing fee: Up to 1% of the loan amount.
• Prepayment Charges: 1%

HDFC - Loans For Professionals

• Loan amount: Up to Rs. 75 Lakhs
• Tenure: 12 to 60 months
• Rate of interest: 12.50% to 15.65%
• Processing fee: Up to 2.50% of the loan amount, minimum of Rs. 2,359 & maximum of Rs. 88,500.
• Prepayment Charges:2% - 4%

PNB Doctor’s Delight - Personal Loan Scheme For Doctors

• Loan amount: Rs. 2 Lakhs - Rs. 15 Lakhs
• Tenure: Up to 84 months
• Rate of interest: 8.95%
• Processing fee: 0.90% of the loan amount + taxes.
• Prepayment Charges: Nil

You can apply for a personal loan for doctors through MyMoneyMantra.

• Access our website and select "Personal Loan" under the Loans tab.
• Log in by providing the required details.
• Verify the OTP.
• Enter employment and income details.
• Enter your date of birth, PAN card number, and complete address.
• Click on Submit and View Offers.
• Select the desired option and click on Econnect.
• Our team will contact you to extend your application.

Things to Consider While Applying for a Doctor Loan

The following things need to be considered while applying for a doctor's loan:

• Check credit score: Credit score is one of the primary requirements to qualify for a loan. Check your credit score before applying for a loan. With a low score, there are all probabilities of your loan application being rejected. Having a credit score above 700 is mandatory to qualify for the loan. Check the score before applying for the loan and set right the discrepancies before applying for the loan so that a high score will be maintained.
• Do market research: Various players in the market offer competitive rates and features for the loan. Do thorough research before choosing the loan provider to get the best deal.
• Avoid multiple applications: Approaching different banks and applying for the loan at the same time will not help you obtain a loan faster. It will only reduce the chances of your getting a loan. Every inquiry made at a bank will be listed in your credit report which will reduce the credit score. Instead of applying for a loan with different banks at the same time, do market research, keep your score good, and have all the documents ready before applying for the loan, which will minimise the turnaround time.
• Business existence: Experience in the field at least for 2 years with a profitable existence is one of the primary requirements to qualify for the loan. If your business is new and you are yet to break even, then the chances of the loan proposal being accepted are bleak.
• Maintenance of proper accounts: If you are running a business, then the maintenance of proper accounts and other financial information is very crucial. Your financial statements like the balance sheet and profit and loss accounts are the basis to assess your repayment capacity.