Doctors are often considered as noble professionals who play an essential role in the society’s well-being. However, financing their unique medical needs and personal goals can sometimes be challenging. To aid doctors in achieving their financial goals, several banks and Non-Banking Financial Companies (NBFCs) offer specialized loan products for doctors. These loans feature unique eligibility criteria, including the doctor’s education, work experience, and income. In this article, we will discuss more about the eligibility criteria for availing a doctor’s loan.
1. Qualification and Work Experience
To be considered eligible for a doctor loan, applicants must possess a degree from a recognized medical college. Additionally, many lenders may require doctors to have a minimum of two years of work experience to avail the loan. This ensures that the borrower has stable employment and the ability to repay the loan.
The minimum age requirement for availing a doctor’s loan starts from 25 years, while the maximum age limit may vary from bank to bank.
Doctor loans are typically offered to high-income professionals like doctors, however, some lenders may require the loan applicant to have a minimum income after meeting their regular monthly expenses, such as rent, bills, and other expenditure. Similarly, some lenders may have an income threshold that qualifies the applicant for the loan.
1. Credit Score
Applicants need to have a good credit score to be eligible for a doctor’s loan. A credit score is one of the most critical aspects of the loan process and plays a significant role in the approval and determination of the interest rate and other loan terms. Generally, lenders look for credit scores of 650 or higher to approve a doctor’s loan.
Having a co-applicant for the loan can enhance the chances of approval for a doctor’s loan. The co-applicant must be an immediate family member and can be a spouse or parent.
3. Business Turnover
For doctors who intend to start their practice, several lenders may require a minimum turnover margin of INR 15 lakhs per annum.
4. Personal Details and Documents
The applicant’s address proof, identity proof, PAN card, and other relevant personal details are required for a doctor’s loan. The lender may also require additional documents such as income tax returns for the previous two years and bank statements for the last six months.
Benefits of Doctor Loan
1. Easy Access to Credit
Doctor loans offer easy and hassle-free access to credit for high-income professionals like doctors. The loan application process is usually streamlined, with minimum documentation requirements in most cases. As a result, doctors can quickly avail loans as per their convenience to meet their various financial requirements.
2. Low-Interest Rates
Doctor loans are offered at attractive and competitive interest rates, typically lower than personal loans and credit cards, resulting in significant savings for doctors. Moreover, some lenders offer exclusive interest rates to doctors, depending on their experience, income, and creditworthiness.
3. Flexible Repayment Options
Doctor loans come with flexible repayment options, allowing doctors to choose the loan amount and tenure that best suits their financial needs. They can choose repayment tenures from 12 months to 120 months, depending on the lender and their requirements. Furthermore, some lenders provide moratorium periods enabling doctors to focus on their practice initially before they begin repayment of the loan.
4. Multipurpose Loan
Doctor loans are versatile, allowing doctors to use them for various financial requirements. They can use them to finance the purchase of medical equipment, to expand their medical practices or finance other personal needs like paying for children’s education, weddings, or healthcare costs.
5. No Collateral Required
Most doctor loans are unsecured, which means that banks do not require collateral from doctors to process the loan. This relieves doctors of the stress of having to pledge their valuable assets as collateral while availing loans and can go a long way in offering peace of mind for doctors.
6. Customized Loan Products
Doctor loans are customizable, allowing lenders to offer tailor-made loan products to fit the specific financial needs of doctors. Lenders analyze the doctor’s income, professional experience, credit score, and other eligibility criteria to offer loans that meet their financial requirements.
Doctor Loan Apps and Finance for Doctors
Doctor loans are best availed through online platforms, with several banks and NBFCs offering their services through Doctor loan apps. Some popular doctor loan apps include:
1. Bajaj Finserv App:
Bajaj Finserv Doctor Loan App makes it easy for doctors to access finance quickly. The app offers a user-friendly interface that simplifies the application process, offers a wide range of loan amounts and tenures, and offers the flexibility doctors need to efficiently manage their finances.
2. Paytm Money App:
Paytm Money Doctor Loan App is designed to offer doctors a hassle-free way of availing loans. It boasts of a secure payment gateway, personalized recommendations, and instant redemptions. The app offers various mutual funds managed by leading AMCs in India.
3. ICICI Bank App:
ICICI Bank Doctor Loan App offers a range of loans tailored to meet the unique financial needs of doctors. The app offers a simple application process with minimal documentation and an easy-to-use interface. Additionally, the app provides competitive interest rates and a range of loan options to choose from.
Doctor loans are designed to address the unique financial requirements of doctors, from establishing their medical practice to expanding or purchasing equipment. The eligibility criteria for availing doctor loans include the doctor’s education, work experience, income, business turnover, and personal details. These loans promise to be accessible and offer attractive financial deals with competitive interest rates and flexible repayment options. Therefore, it is beneficial for doctors to evaluate their financial goals against the eligibility criteria and choose a lender who can best meet their financial needs. include the doctor’s education, work experience, income, business turnover, and personal details. These loans promise to be accessible and offer attractive financial deals with competitive interest rates and flexible repayment options. Therefore, it is beneficial for doctors to evaluate their financial goals against the eligibility criteria and choose a lender who can best meet their financial needs.