What are Loans for Doctors, and are they the same as Professional Loans?

A doctor’s role is essential in our lives and has its financial necessities. Indian financial institutions like banks, and NBFCs, etc., recognize this. Hence, the development of loans for professionals like - Loans for Doctors, exists.

But what exactly is a loan for doctors and how does it function? Let’s clarify the meaning of this loan, its advantages, and its eligibility criteria within the context of India.

What are Loans for Doctors?

A loan for doctors is a form of credit designed for medical practitioners. Its purpose is to cater to individual doctors’ personal and professional financial requirements including opening a clinic, buying medical equipment, or even renovating one’s home. These loans are designed with favorable terms that consider the fact that doctors have a steady income flow and are credible.

Major features of Loans for Doctors in India are:

• Loan Amount: Up to INR 45 lakh or more depending upon the lender
• Collateral Free: Most of these loans for doctors are non-collateralized, making them accessible
• Flexible Tenure: This ranges from 12 months to 84 months based on the loan terms
• Quick Processing: Fast approvals are given by lenders

What is a Professional Loan for Doctors?

A professional loan is a coverall term for credits extended to people employed in different occupations, which may include doctors, lawyers, or CAs. Such professional loans for doctors qualify as one among other professionals’ credits but are specifically intended for those in medicine.

Some common purposes of professional loans for doctors are:

• Expanding a medical practice
• Purchasing medical equipment or upgrading it
• Renovating the hospital
• Managing daily costs

Differences Between Doctor Loans and Professional Loans

However, they have disparities between themselves:

• Target audience – Doctor loans only apply to medical professionals. On the other hand, professional loans encompass several professions.
• Customisation – Doctors’ loans sometimes offer lower interest rates or personalised payment arrangements for their career requirements.

Who Can Get a Loan for Doctors?

To qualify for a doctor loan, you must meet the following guidelines:

• Qualification: A valid MBBS, BDS, or any other higher medical degree
• Age bracket: This is from 25 to 65 years old typically
• Practice Experience: Around three year’s working experience shall suffice as far as salaried doctors go. However self-employed individuals might require having done more than this period.
• Credit scorers: A score above 700 gives good terms for getting money

If in doubt, consult your lender on qualification criteria for loan for doctors since they could differ considerably among lenders.

Also Read: Top Professions Eligible for a Professional Loan in India

Merits of a Loan for Doctors

In addition, there are some benefits that doctors stand to gain when they opt for a loan for doctors:

• Attractive loan interest rates offered by banks are usually between ten and fifteen percent depending on the specific lender.
• Security is not needed when it comes to availing loans for doctors. Many loans for doctors are unsecured, thus reducing the paperwork involved during the application process as well as acceleration of funds.
• Tax deductions under specific sections of the Income Tax Act, of 1961 may be possible if utilized for professional use.

Loans for Doctors Applications Tips:

Here are some tips that could help you find the best doctor loan:

• Compare different loan interest rates across various financial institutions by reviewing them.
• Prepare documents which may include your medical degree certificate, proof of income, and identity card among others.
• Strive to improve your credit score. It should be a higher score that can get better terms.

Also Read: Professional Loans: Meaning, Features, Eligibility, Documents Required

Why Choose Professional Loan for Doctors?

For those whose needs extend beyond what a typical credit option offers, a loan for doctors remains invaluable due to its broader scope and utility.

The Bottom Line

In conclusion, although closely related to each other in India, doctor’s loans and professional loans serve somewhat different purposes. This is because they are all financial tools that are targeted to serve medical practitioners’ unique requirements in the best way possible. Understanding these options would inform the decision on whether to expand one’s business or achieve personal ambitions through leveraging them.

Would you like to proceed further? Apply now for Godrej Capital’s professional loan and see your dreams come true with the proper funding!

Moreover, if you’re struggling to calculate your EMIs, consider using an online Professional Loan EMI calculator. This way, you can easily estimate your monthly EMI payments.

FAQs

Q.1. What is a professional loan?

A. Professional loans are personalised credit offerings for working professionals. These exist for people in professions like doctors, chartered accountants, etc., who need funds to expand or start their practice.

Q.2. Does a Professional Loan require collateral?

A. Professional loans typically don’t require collateral. You can get a professional loan based on other factors like income, qualifications, credit score, and age.

Q.3. What is the maximum tenure of a professional loan?

A. With professional loans, one can enjoy attractive repayment options, pocket-friendly EMIs, and tenures ranging from 12 to 60 months.

Q.4. What is the maximum loan amount offered to doctors?

A. Doctors can avail themselves of professional loans for up to INR 5 Crores.

Q.5. What are the interest rates for professional loans for doctors?

Interest rates vary among lenders and are influenced by factors such as your credit score, loan amount, and repayment tenure. It's advisable to compare offers from multiple lenders to secure the best rate.

Disclaimer:

The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements. Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information, please visit www.godrejcapital.com