The Indian healthcare industry has witnessed exponential growth over the last decade. Introduction of several Government-backed schemes, projects to equalise doctor-to-patient ratio (especially in the rural parts of the country) and the availability of loans for doctors have made substantial growth possible. A significant number of new practitioners opt to avail a credit to fund the expansion of their practice. Affordable doctors loan interest rates, easy application process, and borrower-friendly terms make it possible for anyone to avail and repay a debt without straining their personal finances.
Why Loan For Doctors?
It is a type of credit specifically designed to mitigate the unique personal and professional requirements of a medical practitioner. Loans for doctors usually comes in 4 different types – personal loan for doctors, business loan for doctors, home loans for doctors and loan against property for doctors.
These different categories of credits are made keeping in mind the different types of financial requirement medical professionals might face. The eligibility criteria for doctor loans of various types may vary to some extent, and you might also face specific enquiries while applying.
Lenders usually evaluate your creditworthiness by enquiring about several vital details. Here are some of the questions you can be asked when you apply for a loan for doctors.
1. What is Your Credit Score?
The credit score is a 3-digit representation of your financial history. It ranges from 300 to 900, and a score of approximately 750 or higher is considered excellent. It is one of the most important eligibility criteria for doctor loan.
A high credit rating represents that the borrower is responsible with his or her finances. It increases if you have repaid all the previous debts in time and without defaulting. Lenders prefer applicants with a high credit score as that person has a higher chance of repaying the debt with ease. Doctors with a low credit score can consolidate their debts, lower credit dependency, and avoid applying for too many loans at a time to improve their ratings.
2. How Much Money Would You Require?
Another essential enquiry that you might come across is regarding the sum you require as a loan. Financial institutions allocate a particular amount depending on the individual’s creditworthiness. You have to present a clear reason why would you need the sum to avail the necessary amount.
3. How Long Have You Practiced?
Another essential eligibility criteria for a doctor loan is the applicant’s experience. Financial institutions usually look for a specific year of practice to ensure the borrower has a steady source of income and repayment capability. The minimum practice tenor varies between lenders, but financial institutions like Bajaj Finserv usually look for a minimum of 2 years’ experience (post-qualification) for MBBS, 5 years for BDS/MDS, and 6 years for BHMS/BAMS. Super Specialist Doctors do not require any practice tenor. Such easy-to-meet terms make it possible for everyone to apply and avail a credit.
4. Do You Have a Repayment Strategy?
Lenders look for applicants with a sound repayment strategy to ensure they have planned in advance to clear off their debt. It is better to create a budget depending on their income and FOIR before applying for credit.
The above mentioned inquiries are some of the most common ones that applicants face while applying for credit. Fulfilling these requirements is one of the easiest methods of how to be eligible for a loan for doctors. Refer to top lenders to avail the most beneficial loan terms and features.