Finance

Doctor Loan to Become your Own Boss

Entrepreneurial ventures are proliferating like wildflowers at the present juncture. It is providing scopes to young minds to give more to society. Also, such initiatives help produce employment in large capacities. Doctors are not far behind in exploring such a move. Moreover, to promote such ventures several banking institutes are providing loans, especially to medical practitioners. Doctor loan is one such product that is helping several young medical professionals to start something independently. Additionally, the schemes are of a broad range to cater for a large customer base. Hence, you can opt for a scheme that helps you the most.  To know further about the eligibility, benefits, and other requisitions go through the following article.

Benefits of a Doctor Loan:

To answer what is doctor loan, let us look at what it is used for:

  • Loans for Setting up a New Clinic: Doctors require a large ransom to expand their reach. Furthermore, such clinic setups require a large ransom for construction. A doctor loan helps medical professionals with capital that can fasten the process. 
  • Loan for Obtaining New Equipment: For a clinic or hospital to yield the best productivity they require several types of equipment. However, most of the pieces of machinery are out of reach when it comes to pricing. The banks are providing loans for that as well. You can opt for this loan scheme for providing a hospitable environment to your patients. 
  • Doctor Loan for Laboratory Setup: Every medical laboratory requires the best pieces of machinery to provide good health services. Scanners for X-rays, DEXA scanners and other machines are necessary for an ideal medical laboratory. Furthermore, purchasing equipment as per the laboratory’s requisition is very costly. However, banks are providing loans for laboratory setup at attractive interest rates. 
  • Renovation Loan: Modernizing and expanding an existing medical setup is significant. Medical science is advancing at a fast pace. Furthermore, to provide updated treatments you need to incorporate modern machines. Banks are lending money for the renovation of the old setups. 
  • Working Capital Loan: For maintaining day-to-day operations, medical professionals may require additional finances. Also, for strengthening backup resources capital requisition increases. In such a scenario, you can opt for a doctor loan.

Features of Doctor Loan Schemes: 

The feature list goes as:

  • You can apply for a loan value of a minimum of Rs. 50 thousand under doctor loan schemes. On the other hand, the maximum principal amount for a doctor’s loan scheme is Rs. 75 lakhs. 
  • Furthermore, the interest rates of doctor loans from different banks range between 8% to 12% of the principal amount value.
  • The processing charges are applicable. It might be up to 2.5% of the principal amount.
  •  Besides, a 2% pre-closure fee is also one of the requirements to get a doctors’ loan. 
  • Moreover, if you fail to pay the EMI, an EMI bounce fee of Rs. 500 is payable. 
  • The doctors’ loan schemes require the payment of a penal interest that can be up to 24%. 
  • Furthermore, CIBIL reports issuance charges of Rs. 500 is also applicable. 
  • Also, there is an inclusion of cheque swapping charges that you should pay before you get the loan amount. 

Criteria of Eligibility for Doctor Loan Schemes:

Doctors who fulfil the following eligibility criteria can apply for a doctors loan:

  • According to the scheme, the banks flexibly accept the application of both individuals and a group of doctors. Moreover, trusts and corporate people with the power to borrow can apply for a doctors’ loan. 
  • You should be a registered doctor to take a loan under this scheme. Furthermore, the registration has to be from the Government of India. 
  • Also, you should have a minimum qualification of GAMS, MBBS, BHMS or BDS. 
  • Furthermore, if you are a key promoter of your venture then you need to be a qualified physician. 
  • In some banks HDFC, you can apply for a doctors’ loan only if you have an experience of a minimum of 4 years. 
  • Besides, you should be in association with a private or state hospital. 
  • However, if you are practising independently you need to be a consulting doctor in any leading hospital. Also, the hospital should be in any of the A-one cities. 
  • On the other hand, you should have a work experience of a minimum of 5 years after attaining your qualification. 
  • Furthermore, your age should be at least 25 years. On the other hand, you cannot apply for a loan under this scheme if you are above 65 years old. 
  • Besides, you need to have a minimum annual remuneration of Rs. 1 lakh. 
  • In the case of an existing venture, it should be a profitable one at least for the last 2 years.  

Documents Required for a Doctor Loan:

Several documents are mandatory for availing of a loan under the Doctor Loan Schemes of different banking institutions.

Some of the common requirements are as follows:

  • You need to fill out an application form to proceed further with the formalities. In addition, you have to fill out a bio-data form. 
  • Also, you need to provide a demand draft along with an advocate fee, and a valuation fee. 
  • Furthermore, you have to submit your brief profile. Also, the stakeholders should have the documents along with the key applicant. 
  • ID proof is one of the key documents that you have to showcase to the bank. Furthermore, it can be a Voter Id, a PAN Card, ADHAAR Card, or even a Driving Licence. Also, a Passport is a valid ID Proof.
  • As an address proof, you need to present an electricity bill or a ration card. 
  • You have to provide your ITR for the last two years. 
  • Additionally, you need to produce a statement of your liabilities and assets. 

For an existing setup, you need to produce the following documents along with the above:

  • Provide a CMA form to the bank officials.
  • Additionally, balance sheets for the last three years are mandatory.
  • Furthermore, you need to submit a projected balance sheet for the next 1 year.
  • You also have to provide an estimated balance sheet for the present year. 
  • Moreover, all the balance sheets should be audited by a registered Chartered Accountant. 

A loan for doctors is bountiful to society. It is helping medical professional to better their services to mankind. Moreover, the attractive rate of interest is grabbing the attention of young doctors to take a risks. Such an initiative by the banks is improving the medical facilities in the rural areas as well. Additionally, the loan scheme for renovating medical setups is benefitting the commoners a lot. Doctors with entrepreneurial minds are opting for such loans and creating a difference in the nation.

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