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Doctor Loan

Doctor Loan

Last Updated 21st Oct 2021

  • Doctor Loan interest rate starting @ 10.50%. Check Best Offers
  • Compare and get best offers for doctor loans across top lenders.
  • Doctor loan eligibility depends upon income/salary, and capacity to repay the loan.
Interest Rate 10.50% onwards
Processing Fee Nil to Upto 3.00%
Loan Tenure 60 months
Lowest EMI Per Lakh ₹ 877 for 60 Months
Prepayment Charges Nil to upto 5%
Apply for Doctor Loan @ 10.50%*

Compare Doctor Loan Interest Rates of Top Banks

Bank Interest Rates Processing Fee
SBI 11.20% 3.00%
HDFC Bank 12.50% 2.50%
ICICI Bank 10.50% 2.00%
PNB 8.95% 0.35%
Bajaj Finserv 14.00% 2.00%
Bank of Baroda 10.85% 2.00%
Bank of India 8.85% Nil
Corporation Bank 10.35% 0.50%
Central Bank of India 9.85% 0.50%
Union Bank of India 10.35% 0.50%
IDBI Bank 12.25% 1.00%

What is Doctor Loan?

Loan for doctors is provided to help doctors fulfill their professional dream to set up a medical clinic or hospital, buy new clinical equipment for a medical clinic or renovate or improve existing clinic. Doctors can also take personal loans for their personal use which is known as personal loan for doctors. There are various banks and NBFCs available in India which offer doctor loans at comparative interest rates.

Doctor Loan Interest Rate 2021

Here is a list of top 5 banks offering lowest interest rate on dr loan:-

Bank Name Interest Rate
Bank of India 8.85%
PNB 8.95%
Central Bank of India 9.85%
Corporation Bank 10.35%
Union Bank of India 10.35%

Features and Benefits of Loan for Doctors

Following are the features and benefits of loan for doctors:-

  • You are not required to pledge a collateral or a guarantor
  • Loan amount get sanctioned within 48 hours to 72 hours
  • Minimum documentation with approval based on basic KYC, quick background checks, CIBIL score and income proofs
  • Doctor loan interest rates are low for salaried as compared to rates offered to other self employed professionals
  • It can be used for construction of clinic, renovation or purchasing various equipment for medical use
  • You can avail loan for maximum tenure of 60 months
  • You can choose to pay EMI as per your need as flexible repayment tenure options are available

Purpose of Doctor Loan

Some of the basic purposes for which this loan is granted includes to set up a clinic or X-Ray Lab, buying new clinical equipment or for expansion, renovation, or improvement of existing clinic. Banks specify the purpose for which they are willing to grant this loan.

Purposes for which loan is granted Purposes for which loan is not granted
Clinic/ hospital construction Personal use
Clinic/hospital renovation Land purchase
Medical equipment purchase Wedding or vacation

Documents Required for Doctor Loan

Documents required to avail a loan for doctors are listed as follows:

  • 2 Passport Size color Photographs
  • Filled Application form
  • Identity Proof such as PAN card, Aadhar card, Driving License.
  • Address Proof such as Aadhar card, voter ID or utility bills like water, gas or electricity bills.
  • Qualification Proof such as degree certificates, passing certificates , marksheets.
  • Last 3 months Pay-slips in case of salaried and last 2 years income tax returns for self employed
  • 6 months Bank Statements
  • Proof of ownership in case of self owned clinic or hospital

Eligibility Criteria for Doctor Loan

You may be eligible for physician loan in India from top banks if you meet the following eligibility criteria:

Eligibility Criteria
Eligible Entities
  • Salaried Doctors
  • Self Employed Doctors who own a clinic, hospital, nursing home, pathological laboratory, skin clinic, dental clinic or eye centres
Minimum and Maximum AgeIndividuals with minimum age of 21 years and maximum age of upto 65 years
Loan TenureBanks give loan upto a period of 60 months depending upon your age
Note: However, some banks also restrict the maximum tenure to 60 months.
Minimum QualificationBHMS/BUMS degree to qualify a loan.Must have 1 year and more experience to get a professional loan
Note: Applicants should have an IMA (Indian Medical Association) membership number or any other registration allowed by Indian Government
Income Tax ReturnsShould have filled a minimum ITR of 24 months
CIBIL Score RequirementBank consider 750 and above credit score eligible for doctor loan

Degrees Required to Apply for Doctor Loan

The following set of degrees are required to apply for loan for doctors

  • MD/DM/MS for Super Specialist Doctors
  • MBBS for Graduate Doctors
  • BDS/MDS for Dentist Doctors
  • BHMS/BAMS for Ayurvedic and Homeopathic Doctors
  • DHMS for Homeopathic Doctors

How to Apply for Doctor Loan?

You can apply for a doctor loan by visiting a nearest bank branch or online website of the lender. You can also apply with online market like MyLoanCare, by following these steps:-

  • Visit the official website of MyLoanCare or download the MyLoanCare app from the Playstore
  • Go to Doctor loan
  • Fill the doctor loan form which is given at the right hand side
  • Provide all required details like Name, mobile number, place of residence, educational degrees, etc
  • Now, enter the OTP (One Time Password) which you have received on the provided mobile number
  • Now, fill the further details such as specialization, date of birth, gender, current EMIs, etc
  • Click on ‘Submit’
  • Now select the best offer for you
  • Click on ‘Apply’
  • Our Sales Executive will call you to help with procedure ahead

Types of Entities eligible for Doctor Loans

Banks and finance companies offer this loan to multiple categories of doctors which includes the following:

  • Loan for Salaried Doctors: The loans are taken by those medical practitioners who have a regular source of income along with a minimum qualification of 1 year.
  • Loan for Self Employed Doctors: These loans are taken by those doctors who have their own practice and they intend to expand their medical clinic or hospital.
  • Loans for hospital and nursing homes: These loans are given to those who want to set up a new medical clinic/hospital/ nursing homes or want to renovate their existing hospital premise.
  • Loans for Diagnostic centres and Pathological laboratories: These loans are sanctioned to those doctors who wants to set up their diagnostic centres and pathological laboratories.
  • Loans for Specialised clinics: These loans are taken by the practising doctors to set up specialised clinics which includes the following
    • Skin Clinics
    • Dental Clinics
    • Eye Centres

Secured Loan for Doctors

Banks and financial institutions offer secured doctor loans when you pledge a residential or commercial property to set up a medical clinic, nursing home or to buy medical equipment. Medical Equipment loans are also available against the hypothecation of equipment purchased. Secured loans are also available to purchase ambulances, which have to be registered with RTA (Road Transport Operator) and hypothecated in the name of the bank. Financial institutions decide the loan amount by assessing the type of property and the market value of the property. The interest loan on secured loan is comparatively lower in comparison to unsecured loans for doctors. Also, secured loans are offered with a higher loan amount.

Medical Equipment that can be financed

Some of the medical equipment for which loans can be availed include

  • CT Scanners
  • Sonography Machines
  • MRI Machines
  • X-Ray Machines

Unsecured Loan for Doctors

Unsecured doctor loans are the loans which can be availed without pledging any collateral security. These loans are quick loans and can be availed for a shorter tenure. Beside enhancing your business, you can also take this loan to upgrade your medical equipment or instruments to offer the best possible diagnosis and treatment to the patients. Many banks and finance companies in India offer specially designed and customised unsecured business loans to doctors on the basis of their financial statements, work experience and CIBIL score. Key features of these loans are:

  • Loans can be taken without pledging any property as a collateral security.
  • Loan amount of ₹ 1 Cr and above can be availed.
  • The tenure of doctor loan ranges between 12 months to 60 months.
  • Interest rates starting from 10.50%.

To know more about business loans and its eligibility, click below

Tips to Consider Before Availing Loan for Doctors

Here are a few tips which will help you to improve your chances of getting your loan application improved.

Improve Credit Score – It is very important to have a good credit score because having a lower credit score may increase the chances of getting your loan application rejected by the lender. Whereas, a higher credit score above 750 increases the chances of getting your loan approval with a lower interest rate.

Avoid multiple loan applications – Applying for multiple loan applications increases the probability of the loan being rejected as each query gets captured in your credit report and multiple queries can make you seem credit hungry.

Choose your Bank wisely – Before taking this loan, you are advised to do a thorough research on Banks that offer best rates on doctor loans. You should strive to identify the bank which offers fast service with a low interest rate. Negotiate and apply for a loan through online marketplaces like MyLoanCare to get best deals on rates and processing fees.

Business Existence – Banks will consider giving a loan to doctors with minimum 3 years of practising experience either as a salaried or a self practitioner .

Apply for a loan amount based on your repayment capacity – Determine the loan amount that you can easily repay in future. If you apply for a loan amount which is higher than your eligibility, it can create doubt in the mind of the lender and lead to rejection of your application.

Maintain proper accounts and financial information- It is extremely critical that you have your GST registration in place. Also, it is advisable to keep an audited record of your financial statements. Ensure that you receive and deposit your fees into your bank account as it allows the lenders to get a real understanding of your monthly inflow and outflows.

FAQs

Is CIBIL Score important for availing loan for doctors?

CIBIL score is very important for availing doctor loan. You must have a Good CIBIL score of 750 and above in order to avail a loan for doctor. It indicates a good repayment record and hence banks can offer you a higher loan amount at a low rate of interest. Bad CIBIL Score will result in either a loan at a higher interest rate or rejection of the loan application.

Do banks offer pre-approved loans for doctors?

Yes, few banks provide pre-approved loan for doctors, but it depends on the number of factors like their existing bank account, CIBIL score, income level etc.

How do I repay my loan for doctors?

You can pay back the doctor loan in equal monthly installments (EMIs). The loan will be paid through post-dated cheques. You may also pay your loan through the Electronic Clearing System (ECS) or a standing instruction to debit your Bank account with the EMI amount that may prompt automated deductions.

Which banks in India offer specialized loan for doctors?

Although most of the banks offer loans for Doctor, there are few lending institutions offering specialized doctor loan program as follows:

  • Canara Bank : Doctor Choice
  • Corporation Bank : Doctor Plus Scheme
  • Bank of India : Star Doctor Plus
  • Bank of Baroda : Baroda Loan to Doctor
  • Punjab National Bank : PNB Sanjeevani Scheme

Why do I need loan for doctors?

Generally the purpose of loans for doctors is to provide financial assistance to medical practitioners to set up a clinic/hospital, X-Ray lab or a diagnostic centre etc. You can get this loan from various banks but with a good CIBIL score. Make sure to repay back all your loan dues on time and maintain a good credit score to avail this loan.

How much time will it take to get a doctor loan?

Usually it takes up to 48 hours to 72 hours to get a doctor loan sanctioned. However, you can get loan faster if you have a pre-approved offer. The loan is sanctioned only after document verifcation and ensuring eligibility checks.

Is the interest rate on doctor loans fixed or floating?

Doctor loans are available at both fixed as well as floating interest rate, it is your choice what kind of an interest rate you want to choose. There might be chances that few banks offer floating interest rates and few offer flexible interest rates.

Is part payment option available for a doctor loan?

Yes, a part payment option is available for a doctor loan. However, you will have to pay a fee for it, which varies from bank to bank. The prepayment fee for doctor loan ranges from NIL to upto 5 %.

How can I apply for professional loan for doctors?

You can directly visit the bank branch and meet the sales person, contact a loan agent or apply online at any bank or NBFC’s website. You can also apply at MyLoanCare to compare the best interest rates of all banks and to get the best doctor loan offer.

What are the end uses of loan for doctors?

Loan amount can be used for various purposes such as:

  • Buying clinical and electronic equipments, IT systems, diagnostic products
  • Purchase of ambulance
  • Development of clinic/ hospital such as buying patient bed, maternity bed, stretchers, operation theatre, ICU etc
  • Day to day expenses and many others

What are the charges of availing loans for doctors?

Apart from the interest rate, banks also apply following charges:
Processing fees : This fee is charged when you apply for a loan. The processing fee can range between NIL to upto 3.00% of the loan amount and can be negotiated if you are an existing customer. If you approach the bank through an online marketplace like MyLoanCare to get the best deal at Doctor loan processing fee.
Prepayment penalty : Prepayment penalty is the amount which you are supposed to pay as a penalty in case of early loan payment. Prepayment penalty on doctor loan may vary across all lenders, and may be NIL to up to 3.00%.


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*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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