Doctors are life savers and highly respected individuals. They spend years of hardwork and lot of money to become doctor and master the profession and then devote their whole life for the treatment of people. But when it comes to setting up medical clinic/hospital, they have to rely on their family member or take help of money lending institutions.

Almost every bank in India offers personal loan for doctors. Although doctors fall under the category of self employed, banks offer them greater benefits. Listed below are the benefits offered when doctors take personal loan:

• Higher loan amount
• Flexible repayment tenure
• Part payment option
• Both fixed and floating options available
• Processing time for personal loan is very fast
• No guarantors or collateral
• No prepayment and foreclosure charges

Eligibility:

With benefits come following minimum requirements as follows:

• Qualification should be MBBS, BAMS, BHMS, and other higher professional degree
• Experience after the graduation and post graduation in a recognized centres
• Annual income above certain limit

Documents required:

In order to avail personal loan doctors have to submit following documents:

• Education qualification certificate
• Bank statement for last 6 months
• Income tax return certificate of last 2 years
• Proof of permanent address, identity
• Collateral security and guarantor depending on the loan amount. Although most of the banks do not ask for this.

Eligibilty and documentation required varies for each lending institution. So you should check with each lender for the same.

What are the uses of personal loan for doctors?

Loan amount can be used for various purpose such as:

• Buying clinical and electronic equipments, IT systems, diagnostic products
• Purchase of ambulance
• Development of clinic/hospital such as buying patient bed, maternity bed, stretchers, operation theare, ICU etc.
• Day to day expenses and many others

Which banks in India offer specialized personal loan for doctors?

Although most of the banks offer loans for doctors, there are few lending institutions offering specialized loans as follows:

• Canara Bank – Doctor’s Choice
• Corporation Bank – Doctor Plus Scheme
• Bank of India – Star Doctor Plus
• Bank of Baroda – Baroda Loan to Doctors

Apart from the above list, leading banks such as SBI, ICICI, Axis Bank, HDFC Bank also offer loans to the doctors.

Personal Loan Charges:

Apart from the interest rate, banks also apply following charges:

• Processing fees: This is a miscellaneous fee (% of the loan amount) charged by the banks for documentation work, credit history check, admin tasks etc. This may also be charged upfront before even sanctioning the loan. This fee is refundable by various bank in case the loan application is declined. You can even bargain to lower the fees especially when the loan amount is bigger.
• Prepayment penalty: Amount which borrower has to pay and when. If you repay a bigger loan early then it will generate expected return at lower than anticipated amount. This amount is collected in the form of interest.
• Late payment charges: Never even think of making a late payment. Always make your monthly payments on time to avoid late payment charges which is normally in the range of 1.5%-2.00% Morever it affects an individual’s credit history which results in future loan or credit card application getting rejected. Check out how to improve credit score.

There are many other hidden charges by the lending institution or we can say the charges which are often overlooked by the loan seekers. So before taking any type of a loan, go through every minute detail and compare loans from various lenders, so that you do not repent later.