Necessary Things You Need to Know About Doctor Loans

Everyone acknowledges the importance of doctors and frontline workers, especially post COVID. As healthcare costs continue to rise, encompassing expenses such as advanced medical equipment, facility expansion etc., Doctors often require specialized financial assistance tailored to meet their needs. Hence, in order to meet the such specific lending solutions for medical professionals, helping them to expand their practices, upgrade facilities and achieve their professional aspirations, Bank of Maharashtra offers professional loans for doctors and business loans for doctors.

Hence, understanding doctors’ loans is crucial to address the specific requirements of medical practitioners.

This blog highlights specialized financial solutions like mortgages for doctors, other loans for medical professionals to provide financial assistance that serve a myraid of purposes like setting up of hospital, expansion of existing set-up, purchase of plant and machinery, setting up oxygen plants etc.

What is a Doctor's Loan?

A doctor’s loan is a financial assistance designed to address the distinct requirements of medical practitioners. The loan can be availed for various reasons, like setting up a clinic, expanding a hospital, or upgrading to new-age tools. It is imperative, for medical professionals to understand the diverse options in a doctor’s loan to make well-informed financial decisions.

A doctor’s loan has two major types: a business loan for doctors and a professional loan for doctors. Knowing these two distinct loans is crucial to making a sound decision when choosing a loan. A business loan for doctors is opted for when the applicant plans to establish or expand a clinic or hospital in terms of new technology, purchase advanced medical equipment, or upgrade existing infrastructure. On the contrary, doctors take a professional loan for their individual needs as practitioners, like further education, financial goals, or attending conferences.

Features of Doctor Loans from the Bank of Maharashtra

Bank of Maharashtra extends unwavering support to our healthcare heroes who safeguard lives during crises and everyday challenges. Our doctor’s loans are crafted for qualified medical professionals, offering loans from Rs. 10 lakhs to Rs. 25 crores. Bank also extends flexible repayment options with a tenure of up to 12 years.

These attractive features are open to doctors of various fields, making it a preferred choice of loan for medical professionals.

Know the Interest Rates for Doctor Loans

Interest rates are crucial in affecting the loan amount and its tenure. Hence, understanding the interest rates on your loan is important. The doctors' loan interest rates at Bank of Maharashtra are connected to the RLLR (Repo Linked Loan or Lending Rate) ensuring affordability.

RLLR ensures that issued loans are affordable and adaptable to financial market fluctuations. This dynamic interest rate mechanism helps doctors to keep the loan cost-effective. Moreover, you also get a CGTMSE cover available for loans for up to Rs. 5.00 crores.

Eligibility Criteria for Doctor Loans

Knowing the eligibility is crucial to avail doctors’ loans offered by the Bank of Maharashtra. As the name says, the loan applicant should be a qualified register medical practitioners with minimum qualification of BAHMS/BAMS/BPT/MBBS/BDS degree.

Along from having a degree, an applicant doctor is supposed to have a work experience of 2 years after their qualification. The work experience of 2 years ensures that a wide range of medical professionals get access to this loan.

In addition, the applicant doctor’s business should also be eligible to be classified as MSME under the MSMED Act 2006 with the Uddyam Registration Certificate.

CIBIL Score and Its Importance in Getting a Loan

A majority of the population is worried about their CIBIL score when it comes to loan issuing and approvals. Doctors are not an exception to this. So, what is the CIBIL score needed to get a doctor's loan?

Well, the answer is simple: a score above 750 is generally considered favourable, as this score highlights the borrower's repayment strength and creditworthiness.

Expanding the Practice: Why Doctor Loans are Crucial

Suppose a doctor plans to level up from clinic to hospital; in this case, significant investment will be needed since this development involves infrastructure, new-age technology as well as human resources.

Business loans for doctors can work wonders to support this transition. Doctors can use these loans to buy advanced medical equipment, hire skilled staff, or even register more patients for their hospital.

Understanding the Application Process

Applying for Doctors loan with Bank of Maharashtra is simple and transparent.

The applicant should submit the required documents, like financial statements, medical registration certificates, and experience proof, they can get loan for medical professionals. Moreover, the Bank of Maharashtra’s customer-centric online portal has a simple application procedure to streamline the loan disbursal.

All in all, understanding doctors’ loans and various factors like the loan interest rate and eligibility are vital to making informed decisions. Moreover, as a nationalised bank, we advise all doctors to gain a thorough understanding of the types of loans they can take and then finalise one.

Author: Bank of Maharashtra
Date of Publish: 30 Jan, 2024