How To Get A Doctors Loan In India – A Detailed Guide

How to Get a Doctors Loan in India – A Detailed Guide

A doctor's profession is considered one of the noblest professions in the world. It is often said that doctors are the personification of gods on earth. And indeed, they possess that crucial position in our lives. But what often goes unnoticed is the expensive nature of their practice. Whether it is setting up a clinic or buying new equipment, doctors loan can help them serve the patients without having to worry about large amounts of investment. Before learning more about the doctors loan in India, let's look into some essential data about medical professionals

India has the most medical colleges in the world, including modern medicine and AYUSH. These 595 medical colleges of Modern Medicine (Allopathy) produce close to 90,000 MBBS graduates, and 733 AYUSH medical colleges generate close to 53,000 graduates every year. More than 100 AYUSH medical colleges are proposed in the academic year 2022-23. It will further increase the number of doctors in India. With economic development, the healthcare sector is also growing, and so are the available doctors per 1000 persons.

In 2016, the WHO Global Strategy on 'Human Resource for Health: Workforce 2030' stipulated that countries needed about 44 doctors, nurses, and midwives per 10,000 population. It was considered necessary for attaining the medical target of the Sustainable Development Goals tracer indicators.

Minister of State for Health and Family Welfare, Bharati Pravin Pawar, recently claimed that the Indian doctor-population ratio exceeds the World Health Organization (WHO) recommendation. But many factors highlight that figures shown in the parliament need to show the true picture. It includes a distorted proportion of the health workforce across states, rural-urban and public-private sectors, and a need for a live register for practicing doctors.

Serving people is often a challenging and capital-intensive job. To start independent practice, they need the latest machinery, software, skilled staff, etc. They need capital investments to carry out their operations. Lack of funds restrains them from serving the best to the patients. Lack of medical equipment also contributes to poor healthcare services.

Also, nearly 50% of medical colleges are private. It is a known fact that they charge hefty education fees. When it comes to establishing their practice after completing their education, it becomes an obstacle to arranging finances for acquiring necessary facilities and running day-to-day operations. In this article, we will talk about how to get a doctor's loan in India.

A doctor may need finances for various purposes:

To Set Up or Renovate a Clinic
It requires capital to set up a new clinic or add new facilities. A doctor may need more cash on hand to provide for it. At such times, a loan is a perfect choice. It lets them set up a practice and enhance the services by adding the latest machinery and software. They can also buy or lease new premises for setting up/ expanding their existing workplace.
To Maintain Working Capital Reserves
Any clinic needs sufficient working capital to run without any interruptions. A doctor's loan helps keep the required working capital to pay staff salaries, maintain equipment, meet daily expenses, and help serve patients better.
To Meet Personal Obligations
A doctor may need financial assistance to meet his personal obligations. For example, he can get a loan for his child's education, marriage, travel, or medical expenses. Irrespective of the end users, most lenders offer same-day sanctions to doctors.
To Enjoy Specialized Advantages
Professional loans like doctor loans come with numerous perks that other people do not get. For example, they present a higher sanction, lower interest rates, long tenures, and minimal processing time. Other loans may offer different tailored benefits.
How to Get a Doctor Loan
A doctors' loan in India serves the needs of doctors. On meeting the doctors' loan eligibility criteria, L&T Finance offers Practice Loans for professionals. LTF offers fast and hassle-free loans to doctors keen to expand their practice. Our end-to-end digital processing with attractive rates and flexible repayment tenure makes it the first choice for doctors.

Doctor's Loan Eligibility Criteria
To benefit from a doctor loan, a doctor…

• must fall under the 24-70 years of age group
• must have at least a bachelor's degree in the relevant field of allopathy
• must be practicing in the relevant field for at least three years
• need to have at least six months of previous bureau history

Key Features

• An eligible doctor can get a loan from ₹5 lacs to ₹50 lacs with easy terms
• No collateral is required, and no need for a guarantor
• Risk-based interest rate is applicable starting at just 12% (based on your repayment history and credit score)
• The repayment tenure is flexible.It can be extended up to 60 months
• We have the best turnaround time (TAT), which means we process the loan rapidly and effectively
• Unlike other institutions, we do not have any hidden charges. Customers have complete transparency
• All the terms and conditions are communicated clearly before the sanction, thus, ensuring mutual trust between the customer and our institution

Documents Required

KYC Documents:

• Firm/Company: PAN Card, Address Proof, and Other Applicable Registrations
• Proprietor/Partner/Director: PAN Card, Aadhaar Card, Electricity Bill/Rent Agreement/Index II

Income Documents:

• Latest two years' Financials: IT Returns, Computation Sheet & Balance-Sheet (wherever applicable)

Bank Account Statement:

• Operative Bank Account Statement for the Latest 12 months (wherever applicable)

Qualification Documents

• Degree Certificate
• Certificate of Practice

Fees & Charges

Interest rate

Depending on your credit score, you will get a competitive doctors loan at an interest rate of 12.5% to 15.5%

Pre-Payment Charges

On pre-payment, a 5% fee is applicable on the outstanding principal plus taxes applicable.

Processing Fees

Upto 2.5% one-time fee applies to your total loan amount.

Bounce Charges

How To Get A Doctors Loan In India – A Detailed Guide600 bouncing charges are levied per bounce.

Overall, a doctor's loan is a valuable financial tool for medical professionals to expand their practice. A loan can enable doctors to achieve financial stability and success with careful planning and consideration. Contact L&T Finance to get a doctor loan in India today and grow your medical practice.