Doctors Loans are prevalent and provided by several loan institutions. These loans can be availed by doctors with zero collateral and lower than average interest rates. Doctors Loans are similar to personal loans provided by several borrowers. The only difference is that the Doctor's Loans have lower Interest rates than the personal Loans. The need for Personal Loan for Doctor can arise anytime, to anyone, and doctor loans are tailor-made for doctors.
There are several types of Doctors Loans as well:
- Doctors Loans for Personal Use
- Doctors Loans for Business
- Doctors Loans against property
Doctors Loans for Personal Loans: As the name suggests, this loan type is meant for the personal use of doctors themselves. Doctors can use them for expenses like Shopping, Travelling, paying tuition fees, etc.
These loans carry higher interest rates than the Doctors Loans for Business. But lower than the normal Personal Loans offered to the general public.
Many loan institutions offer Personal Loans for doctors at an interest rate of as low as 10.25% interest rates plus the Processing Fees. The maximum amount that can be availed without any collateral is up to 2 crores. A normal person (who is not a doctor) would not be eligible for such higher amounts with zero collateral, and the interest rates, in general, can go as high as 24% for Personal Loans.
Doctor's Loan for Business: These loans are made for Doctors who want to expand their business, buy medical equipment, open clinics, etc. Doctor's cannot use this loan for business use. They can be availed only for a Doctor's profession-related requirements. Doctors Loan for Business is the most popular type of Doctors Loan availed by them.
Doctors generally require substantial amounts of money for the expansion of their Hospitals, Clinics, etc. Or for purchasing Medical Equipment, as they don't come cheap either. So, a Doctor's Loan helps the doctors with such needs by providing them with the required funds at low interest rates.
Interest rates on Doctors loans for businesses are generally lower than the personal loans for doctors. It can go as low as 9% p.a if you find the right institution. The amount in these loans is also higher than the personal loans. Lenders offer up to 5 crores on such loans, but most lenders may not offer such amounts without collateral or a guarantor.
Doctors Loans against property: These are made for Doctors to avail of huge amounts of loans. Doctors can get loans as high as 3 to 5 crores for long tenures. In this loan type, the loan amount and the tenure are generally higher than the normal loans. Doctors may sometimes require huge sums of money to purchase land and build a hospital over it. For such purposes, Doctors can avail of this loan. Taking a loan through this category can help a Doctor get the loan at lower interest rates and save huge money.
The interest rates involved in such loan types are similar to the Doctors loan for the business category. Since these loans come under the head of secured loan types, their charges and availability are easier.
Now that we have understood all kinds of Doctors loans available in the market, let us look at how are these loans beneficial for the Doctors:
Lower Interest Rates: The main benefit of a Doctors Loan is that they come with lower interest rates than normal personal loans. We can consider this a privilege provided to the doctors as it is an honourable profession, and doctors are well-educated people. Who in the maximum probability shouldn't default on their loans, or is thought. Therefore the risk for the borrower is reduced, which leads them to offer the loan at lower interest rates.
Longer Tenures: A doctor's loan comes under various categories, as mentioned above. So, the doctor's loans for business are available for longer tenures. And there are many repayment options available with the Doctors, the most common of which is the EMI option.
Then there are Flexi loans available where doctors can withdraw the whole amount and repay the amount at their convenience. Not all lenders provide this feature, and Bajaj Finserv is one of the financial institutions that have this feature. Part Prepayment is also one of the features many borrowers opt for.
No Collateral required: Doctor's loans are also unsecured loans provided by the lenders. And doctors don't have to give anything as collateral while availing of this loan. Although doctor's loans are unsecured, they still come with low-interest rates, making them highly beneficial.
Over the low interest provided especially for the doctors, during festival seasons, banks offer several other offers on Personal Loans, Gold Loans, Doctors Loans, etc. It is a common practice followed by lenders all over the country to provide discounts and offers on loans. Lenders provide such offers to increase their sales and promote their institutions.
For Example, SBI is currently offering discounts on personal loans for the festival of Dussehra. You can find out more about it by clicking on this link.
Quick Disbursement Process: Another feature of a Doctors' loan is that the disbursement process is usually faster than other kinds of loans. Bajaj Finserv disburses the doctor's loan amount as high as 42 lacs within 24 hours into the borrower's account. Lenders are simply more eager to provide such loans to the Doctors. Doctors are considered ethical and educated people, and therefore the chances of them defaulting are lesser.
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