How Doctor Loan Helps you to Expand Your Medical Practice?by Sakshi Kharbanda Financial Consultant
A doctor's loan is akin to a business loan, except it is meant for skilled medical practitioners. As a doctor, you would often be willing to start afresh your business or practice and expand the same. By doing this not only will you be making a significant contribution to the field of medical research and the healthcare industry but also be expanding your business and earning profit off it. So doctor's loans are essentially a good way to expand your medical practice and get paid for it in turn. To understand how and why a doctor loan is beneficial to your business in the healthcare industry, you need to know more about doctor loans.
What is a doctor's loan?
Doctor loans are usually loans granted to medical professionals collateral-free for kick-starting their career independently or practising independently. Besides the big loans in the credit market system, like a car, housing, gold etc. these loans are pretty secured and come with high coverage and protection. There are the usual terms of repayment for the loan which ranges anywhere from 10 months to 36 months and even then you can switch to the EMI option. The loans are flexible in the sense that you can even mortgage any property against the loan amount and as such, it seems like a pretty good deal. It is a definite boost to your future prospects in the medical field since it grants you the loan almost instantaneously without requiring any intensive paperwork or showcase for the same.
You can use the loan amount to finance your personal expenses or business plans, earn money from the same and start repayment. It's not an easy loan to default given the significant timespan they give you for repayment and the attractive interest rates. However, this is yet another area that you need to carefully consider and compare across lenders before going with the option you feel is best suited for you. A lower interest rate ranging from 7 to 9 per cent is always feasible compared to banks that offer the same amount of loan at 33 per cent. So the decision should be made wisely. Further reliable banking institutions like SBI or HDFC or ICICI banks should be chosen while making the decision.
Impact on your medical practice
Besides the reasons mentioned above, you can further list the importance of doctors loans in the following manner.
It'll help you make a fresh start to your field of experience and expertise in medicine and health care with sufficient funds at your disposal. You can use the funds wisely to invest in your prospects in a worthwhile manner and yield interests at minimum opportunity cost.
One way to enhance your medical practice is by hiring more staff for management and taking care of the patients. These include doctors, nurses, general practitioners, IT technicians, administrative staff and ultrasound operationalists.
You can also invest in administrative technology including medical equipment like EMR etc. Though these investments might prove to be costly in the short run, in the long run, they yield better results, making your administrative process much quicker and more efficient.
Once you've acquired the loan, you could also start an outreach campaign, meaning you could market your brand of healthcare to attract more customers towards it. Obtaining a professional loan helps you to afford both online and offline brand promotion, create a better reach, attract people and help profit from expanding your business.
You could also invest in diagnostic technology and state of the art equipment in your medical clinic. Further, you could set up an adjoining laboratory for research purposes, a pathology department for getting blood samples and other tests done, a health care checkup section and USG, MRS, PET scan etc.
Process of acquiring a doctor’s loan
The procedure of acquiring a doctor loan is pretty simple and hassle-free. All you need to show are your medical degrees from a centrally recognised or state recognised medical council and your KYC form showing your residence and citizenship proof. Once that is verified you need to fill in some extra details about your years of practice, current occupation and your future plans for the loan. All of these can be done with just one click on the online website portal of the bank. Then you can apply for the loan amount and have it sanctioned if you fit all the bills for the eligibility of a doctor's loan. The eligibility criteria should be read more thoroughly before investing in the loan since though it is more or less the same across all banks, some banks might throw in some extra ones as well. The important thing to note here is that they do not take into account your income or credit score while filing your application. If however, you wish to take the loan against some property then your account balance and tax submissions would be considered along with the deed.
Hopefully, this article has got you covered in the best possible ways as to why and how you should choose a doctor's loan for yourself in the future. So go through it carefully before investing.
Created on Jan 19th 2022 05:45. Viewed 238 times.