Doctor Loans: Explained

Every year, thousands of doctors graduate from medical school. Possibly an equal number complete their residency. With student loans to pay and eagerness to start their careers, doctors usually tend to overlook the simple feasibility of taking advantage of a doctor loan.

What is a Doctor Loan?

In order to start a clinic or a hospital, a doctor would need to purchase expensive equipment. Since this equipment is very expensive, it becomes very feasible for a doctor to apply for a loan. Banks, NBFCs and other financial institutions have started rolling out loans termed as “Doctor Loans,” which have been designed specifically for doctors. These loans provide unique benefits to doctors.

Benefits of a Doctor Loan: 

1. Requires very little down payment.
2. Helps build a good credit score.
3. A doctor loan usually doesn’t require any guarantors or collaterals.
4. You can apply for one online.
5. Many banks and NBFCs do not charge any fees or charges when you prepay or foreclose your loan.
6. General health practitioners, surgeons, dentists, veterinarians, optometrists, podiatrists and a variety of health care providers are eligible.

Here are Some Ways a Doctor Loan can help you:

1. Set up a nursing home or a polyclinic.
2. Expand an existing practice.
3. Purchase medical equipment.
4. Purchase ambulances or hospital vehicles.
5. Purchase a hospital.
6. Build a pathological laboratory.
7. Renovate your medical premises.
8. Buy more furniture for your medical premises.
9. If you require working capital.
10. Setting up medical facilities in rural or tribal areas.

When is the Best Time to Apply for a Doctor Loan?

Although each situation is different, loans can be applied for at various stages of a doctor’s career. A good time to apply is when the qualified, registered medical practitioner has obtained a minimum of 3 years’ experience in any field of medical science recognized by MCI/DCI/other statutory/regulatory authorities to practice in India.

Usually, doctor loans are offered to practicing doctors with ownership of their clinics, or to those who are practicing in a government or private clinic, hospital or as medical consultants, but it varies from bank to bank. Doctor loans offer multiple benefits along with quick approvals and a low rates of interest.