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What is a Doctor Loan and do I qualify for it?
Posted: Jun 23, 2017
Ishant Verma completed his post graduate course in Anaesthesiology from New York University. He returned to India and wished to expand his father’s polyclinic into a modern hospital. His father had some savings but it wasn’t enough, so the young physician decided to take a Doctor Loan from Bajaj Finserv. He applied for a loan of Rs 20 lakhs with his father as a co-applicant. Dr. Verma senior’s credit score was very high and he had a steady income too. This helped them in getting the loan right away and they were well on their way to expanding their medical business.
Understanding a doctor loan
As mentioned above, a doctor loan is a kind of professional loan that is tailor made for the medical professionals. A doctor loan is available from most leading banks and Non-banking Finance Companies (NBFCs) like Bajaj Finserv. The loan is collateral free and you do not have to pledge any asset to get the loan. The loans are available for a maximum amount of Rs 30 lakhs and come with flexible repayment options. There are mainly two kinds of financing options in the doctor loans. They are:
Traditional loan: Here, the loan amount is disbursed in whole and you may have to pay a fixed EMI each month. The interest is calculated on the whole principal. You can make a prepayment and close the loan earlier if you wish to do so.
Line of credit: Here, the loan amount can be withdrawn in smaller parts, as and when you need them. You would be charged interest only on the amount you use and not the entire loan principal. You can choose EMIs with just the interest component and clear the principal at the end of the loan tenure.
Eligibility criteria
To be eligible for a doctor loan, you have to meet the following criteria:
Educational qualifications: To qualify for a doctor loan, you must have a graduate (MBBS/BDS) or postgraduate (MD/DM/MS/MCH/MDS) doctor degree. This can be from a registered university in India or abroad.
Work experience: For a postgraduate doctor, a minimum work experience of 5 years is needed. For a graduate doctor, a minimum of 8 years of experience is needed.
Property ownership: You can apply for a doctor loan only if you have a property, either commercial or residential, in your name.
Income: A doctor who resides in a tier 1 city must have a minimum monthly salary of Rs.75,000. For a doctor who lives in a tier 2 city, the salary must be at least Rs.40,000.
Co-applicant proof: If you are applying with a co-applicant, you have to give a proof of your relationship with the co-applicant, along with his or her ID and address proofs.
Documents needed
If you are eligible for the loan, you have to submit the following documents:
Form 16 (last 2 years)
Three months’ pay slips
Three months’ bank statements
Education certificates
ID proof
Address proof
Property ownership proof
Duly filled in application form
Passport size photograph
In a nutshell
A doctor loan helps physicians in starting or expanding a medical practice. So, if you are a doctor who is looking for some financial assistance, apply for a doctor loan from Bajaj Finserv. Just log on to Bajaj Finserv’s official website and make an application right away.
Arwind Sharma is a financial advisor with an experience of more than 7 years. He has worked for topmost financial firms in India and has been a visiting faculty at many reputed institutes in India.