Practicing medicine in India is undoubtedly a costly affair. It especially holds true if an individual is practicing solo. With India producing more than 30,000 medical graduates every year, the competition is stiff, and doctors need to invest extensively from time to time to keep up with rapidly evolving technology to sustain their practices.
To that end, scores of healthcare practitioners in India resort to business loans for doctors to cover their professional expenses. It provides a much-needed breathing room to individuals and allows them to keep their savings intact for more pressing purposes.
In India, a doctor can explore different avenues to avail a business loan. By becoming familiarized with those, individuals can ensure they can finance their unique financing needs appropriately and efficiently.
Here are the five ways medical practitioners in India can avail a loan for their professional needs –
- Secured business loan
One of the ways doctors with low credit score can avail a business loan is by collateralising an asset. Individuals with a healthy credit score can also opt for a secured business loan if they want to keep the interest rates low.
The size of such a loan depends on the value of the pledged asset and LTV. Hence, doctors can avail a substantial amount to finance a range of professional expenses with such a credit.
- Doctor loan
Individuals practicing healthcare in India may consider a doctor loan to finance their professional needs, especially high-end ones. A business loan for doctors is tailored to meet the multifarious expenses unique to this profession. Individuals can utilize such a professional loan to infuse funds and expand any existing facilities, procure advanced medical equipment, upgrading to the latest software technology like EHR, etc.
Lending institutions like Bajaj Finserv extend up to Rs.25 lakh as an unsecured doctor loan. Medical practitioners can avail such loans for terms of up to 96 months, providing sufficient ease of repayment.
Such financial institutions also bring pre-approved offers to ensure a streamlined application process for prospective borrowers. Such deals encompass a range of credit options, including business loans and personal loans. Individuals can check their pre-approved offer by sharing only their name and mobile number.
- Credit card loan
Individuals can also choose to avail a loan against their credit cards. A credit card loan is an excellent way to meet immediate financing needs since there’s no need for documentation and verification anew.
The loan amount that an individual can avail is against the unutilised credit limit of such a card. Hence, the amount may vary depending on the credit limit. Medical practitioners often utilise such a loan to meet small-ticket expenses. The tenure for such a business loan for doctors is also short; usually, 3 months.
- Medical factoring
Several healthcare professionals avail external financing via medical factoring. With this financing facility, individuals can receive advances against amounts tied up in medical insurance claims.
It is an excellent monetary device to fund daily operations. However, when it comes to doctor loans or medical factoring, which is a better financing option, the former might prove more advantageous owing to its substantial nature.
- Peer to peer financing
P2P financing has emerged as a popular option for several businesses. Through peer to peer financing, individuals can avail funds directly from investors, and there’s no intervening institution. It’s usually done via P2P platforms, where medical practitioners can post their financing needs along with terms of repayment. However, first, they need to go through an extensive verification process to register with such a platform.
Although financing through P2P platforms is pretty straightforward, adequate funding may require some time. Moreover, to entice investors, individuals might need to set high interest rates. Thus, it can be a bit expensive to service such a loan.
It is essential to understand which option to choose depending on the nature and size of the expenditure, as well as repayment capability, to optimize the benefits of above-mentioned business loans for doctors.