Business loans for doctors have been designed by keeping the requirements of their profession and challenges in mind. This loan is specifically aimed to ensure that doctors’ practice keeps up with the growing demands or advancement in technology. A business loan can be used for various purposes that include buying new equipment and machinery, train or hire staff, or to expand their existing businesses, etc.
|Interest Rate||Varies from bank to bank|
|Age Criteria||Min. age – 25 Years|
Max. Age at time of loan maturity – 65 Years
|Loan Amount||Max. Rs. 5 crore|
|Processing Fee||Up to 2%|
|Loan Tenure||Starts from 12 months|
A business loan for doctors is similar to a business loan for professionals and can be customized as per the individual’s requirement. Almost all the major financial institutions offer business loan for doctors. These loans, however, have an upper limit which varies across lending institutions. For example, SBI offer loan amount up to Rs. 5 crore while, Bajaj finance offer business loan for doctors up to Rs. 40 lakh.
Business Loan for Doctors – Interest Rate – 2021
Banks and financial institutions offer loan at different interest rates. Doctors can avail a loan with an applicable interest rate that may fall within the range of 11.90% to 18%.
Do note, that the final applicable rate of interest will be decided by the lending institution only. The interest rate charged by the lending institution is calculated on the basis of the following factor; income, work experience, past credit history, and so on.
Check – SBI Doctor Loan
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Business Loans for Doctors – Eligibility
Banks and financial institutions have various eligibility criteria when it comes to extending business loans to doctors. Few common eligibility criteria are:
|Profession||Doctor(Allopathic, Homeopathic, Ayurvedic)/Dentist|
Homeopathic and Ayurvedic
|Minimum Age||25 Years|
|Maximum Age||65 Years at the time of loan maturity|
|Minimal Annual Income (ITR)||Rs. 1 Lakh|
|Profitable Operation||2 Years at least|
|Post Qualification Work Experience||Super Specialists|
6 Years – 15 depending on qualification
Note: These criteria are for indicative purposes only. Actual eligibility criteria vary across lending institutions.
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Features and Benefits
The most important features and benefits of business loan for doctors are listed below:
1. Quick Processing time
The loans are disbursed within 2 working days of application.
2. Quick and Easy to apply
There is minimal paperwork involved in securing a business loan for doctors.
3. Flexi-limit options
Most of the lending institutions offer a flexi-loan option. In this case, a certain amount is given to the doctor as a loan. The amount is transferred to a special account and the doctor can use the loan as and when required. In this case, the doctor only has to pay interest on the amount used and not on the whole loan amount.
4. Easy Repayment Options
The loans under the easy repayment option scheme are extended for a period of 12 to 96 months. In addition, the lending institutions allow pre-closure of loan account after 12 months.
5. Quick Disbursal
Once the loan is approved, the loan amount is disbursed within 24 hours.
6. No Guarantor Required
Most business loans for doctors are un-secured hence; there is no hassle of getting a guarantor or pledging an asset.
7. Part Payment Allowed
Many lending institutions allow part payment of the loan.
8. Pre-approved Loans
Many financial institutes also offer pre-approved loans that are disbursed immediately.
Documents Required for Loan Application
The following Documents are required when applying for a business loan for doctors:
|Identity Proof||Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc.|
|Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill (not more than 3 months old), etc.|
|Income Proof||Salary Slips (not more than 3 months old), Bank Statements (not more than 3 months old), ITR, Form-16, etc.|
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FAQs on loan for Doctors
Q. Who can apply for a business loan for doctors?
Ans. Indian citizens that have valid qualifications and meet the minimal post qualification work experience can apply for a business loan for doctors.
Q. Can Homeopathic or Ayurvedic doctors apply for a business loan?
Ans. Yes, certain lending institutions grant a business loan to doctors who practice Homeopathy or Ayurveda.
Q. Do banks charge a processing fee on a business loan for doctors?
Ans. Yes, certain banks charge a processing fee on a business loan for doctors.
Q. How soon can the loan amount be disbursed?
Ans. Certain banking institutions disburse the loan amount within 48 hours after approval. However, the time taken to disburse loan amount varies across lending institutions.