The healthcare industry of India is projected to grow to Rs 8.6 trillion (US$ 132.84 billion) by FY22 from Rs 4 trillion (US$ 61.79 billion) in FY17 at a CAGR of 16–17%. Looking at such a spectacular number it is a pragmatic as well as a smart idea for doctors to expand the size and scope of their practice. This dream can be fulfilled by doctors if they avail business loans. There are various lenders who offer specially designed loans for the doctors. The Business loans are an unsecured loan in which a borrower is not required to pledge asset collateral. The loans are taken for expansion, hiring new resources or buying new machinery or asset for the business. At the end of the tenure, the borrower has to repay the loan with interest amount inclusive.
There are various banks in India which offer doctors loan:-
SBI Doctor loan
HDFC Doctor loan
PNB Doctor loan
ICICI Doctor loan
Bajaj finserv
Bank of Baroda
Bank of India
Corporation Bank
Central Bank
Union Bank
IDBI
These banks offer a loan for setting up a clinic, to buy new clinical equipment for a medical clinic and renovate or improve the clinic.
Features of business loans for doctors in India:-
| Features | |
| Interest Rate | 11.25% onwards |
| Processing Fee | Up to 2% of the loan amount |
| Loan Tenure | Up to 5 years |
| Prepayment Charges | Nil to up to 5% |
There are two types of doctor loans, secured and unsecured loan.
- Secured doctor loan: Secured doctor loan is a loan which is availed after a borrower mortgages any of their property. This loan can be availed by salaried and self-employed professional. The loan amount ranges between Rs 50,000-Rs 8 crores for a flexible tenure of 12 months to 84 months. The interest rate for such a loan starts from 7.90%. The medical equipments which can be financed are CT Scanners, Sonography Machines, MRI Machines and X-Ray Machines.
- Unsecured doctor loan: The unsecured doctor loan can be availed without pledging an asset as security. These loans can be availed for a shorter tenure so they are called short term loans. A borrower can get a loan Rs 1 crore and above. This loan can also be taken to upgrade the equipment in the clinic.
Who can apply for a doctors loan:-
An individual who has any of the following degrees can apply for a doctors loan:-
- Super Specialist Doctors (MD/DM/MS) for Super Specialist Doctors
- Graduate doctors (MBBS) for Graduate Doctors
- (BDS/MDS) for Dentist Doctors
- (BHMS/BAMS) for Ayurvedic and Homeopathic Doctors
- (DHMS) for Homeopathic Doctors
Benefits of Doctor loan:
- The loan can be availed with and without security, choose according to your needs
- The disbursal time is quick in doctor loan, the amount is disbursed within few hours of approval
- The doctor loan is offered a lower interest rate when compared to other loan types
- The loan amount can be used for purchasing clinic, equipment, renovation or any other medical use
- Flexible loan tenure is offered from 12 months to 84 months
- A borrower can opt for a fixed and floating interest rate for interest calculation
- The loan amount can be repaid in a flexible tenure
- Doctor loan requires minimum documentation with approval based on regular documents like KYC, quick background checks, CIBIL score and income proofs
How to expand the business from doctor loan:-
Hire New Staff: Business loans for doctors are useful for hiring new staff such as practice managers to help improve overall operations, technicians to manage EHR and EMR systems, or diagnostic specialists. These people can conduct tests which are recommended for the patients as it will in increasing the revenue.
Invest in New Technology
Buy a healthcare technology which is innovative, powerful and dynamic such types of machinery comes at a higher cost. This machinery will be beneficial for the business as it will help earn more revenue. To make an investment in advanced machinery one should avail a business doctor loan.
Open New Practice Locations
The hospital industry is growing at a very good speed and this era is also termed as ‘Golden Era’. If you have many patients visiting you and you see there is the scope of growth for business then you start new clinic at the new locations, it will help in meeting growing demand.
Conclusion: If you are in the hospital industry and you want to grow your business or buy expensive machinery which will help you increase the revenue then you can avail a doctors loan.