According to a report, the healthcare sector in India is likely to reach US$ 372 billion by the year 2022. Moreover, the medical devices market in India is also expected to cross US$ 11 billion by the same year.
The increase in the number of doctors and private clinics in India are contributing heavily to this growth. Additionally, to assist doctors in setting up modern clinics, financial institutions are lending credit to healthcare professionals in the form of doctor loans.
What is a doctor loan?
In simpler words, credits available for medical or healthcare professionals is known as doctor loans. Lending companies offer such loans to aid medical practitioners to start their clinic, renovate their existing one, purchase necessary equipment, or use it to meet their personal financial requirements.
What is the purpose of a doctor loan?
Financial instructions have launched schemes for healthcare professionals to help them –
- Start a new clinic
Doctors are always keen on building their private practice apart from their hospital duties. It broadens their variety of patients, helps them establish a name in the society, and generate more revenue. However, starting a well-equipped practice is not cheap; it requires a lot of capital.
Building a practice from scratch requires a place at the beginning, be it rent or owned. After that, it needs furnishing, necessary equipment, staffs, etc.
To support all these expenses, doctors can avail a loan against property. It is a part of doctor loans offered by various financial institutions.
A loan against property is a secured loan, and individuals need to mortgage collateral to avail it. Typically, such loans offer a substantial credit amount, and it can go as high as Rs.2 crore.
Such credit options also offer a longer tenor of up to 18 years and a competitive interest rate. This loan can help doctors start their own medical practice.
- Renovate the existing clinic
Doctors who have an existing practice of their own should renovate their clinic once in a while. Availing a doctor loan can aid them in doing so. The easy terms and conditions of such loans prove very useful for this purpose.
Doctors can opt for a business loan from the several types of doctor loans offered by lenders. Here, borrowers can avail up to Rs.37 lakh without any collateral. Moreover, the loan application process is smooth and less time-consuming. Typically, such loans are approved within a day. Additionally, borrowers can enjoy a flexible tenor of up to 96 months.
- Purchase medical equipment
Another area that requires considerable investment is medical equipment. Financial lenders have stepped forward with a medical equipment loan to help healthcare practitioners improve the quality of healthcare services at their clinics.
Loan against property and business loan are two primary examples of such credit. These loans offer a corpus of up to Rs.2 crore at an attractive interest rate. Moreover, borrowers can enjoy quick disbursal and flexible tenor as well as easy repayment options. With the help of these loans, doctors can implement all the essentials needed for clinic management.
- Buy/purchase a property
In case medical practitioners want to invest in a property either for their personal use or set up a clinic, they can do so with the help of doctor loans. Financial institutions offer home loans to doctors to purchase or buy a property.
They can avail up to Rs.2 crore for this purpose at a competitive interest rate. These loans have a tenor of up to 18 years, which enable easy repayment. A few lenders also offer top-up loans of up to Rs.50 lakh on home loans.
- Fulfil personal needs
In case of any personal financial requirements, professionals can avail a personal loan for doctors to manage it.
With no end-use restrictions, doctors can use this credit for any purpose. They can avail up to Rs.37 lakh without any collateral. Moreover, these loans have a flexible tenor of 96 months and quick disbursal.
Prominent NBFCs of India are offering loans for doctors to aid doctors to improve their professional as well as personal well-being. For instance, Bajaj Finserv, one of the leading NBFC of the country, offers such credit at an attractive interest rate, flexible tenor and part pre-payment facility.
Furthermore, the company also provides pre-approved offers to make a loan application process smooth and save time.
Benefits of a doctor loan
- The most significant benefit of such loans is that there is more than one type of loan available under the umbrella of a doctor loan. Therefore, it helps medical practitioners to fulfil any financial requirement they have without much hassle.
- Minimum documentation and quick disbursal time make such loan for doctors a lucrative credit option for healthcare professionals.
- Unsecured loans, i.e. personal loans or business loans, do not require any collateral.
- Competitive interest rate and flexible tenor makes the repayment easy for individuals.