The medical profession is an important pillar of any country’s infrastructure. In India, the field is growing in popularity with nearly 90,000 medical students graduating to become doctors every year. While the growth appears promising, it also highlights the fierce competition in the field. High-quality medical professionals and doctors are undoubtedly crucial factors in establishing a robust healthcare system.
However, starting and expanding a medical facility or clinic can be a challenging task, especially when it comes to financing. This is where a doctor loan steps in to provide much-needed financial assistance to medical professionals.
It also takes care of the high cost of equipment and other medical facilities which poses a significant financial challenge to doctors. Acquiring medical equipment, such as diagnostic machines, surgical tools, and patient monitoring systems, can be an expensive affair. Also, the cost of renting a medical facility, along with the hiring of staffing, can be substantial for someone who is just entering the field.
Additionally, with the advancements in technology and new modes of treatment, clinics need regular upgrades and hiring additional staff to provide the best facilities for patient treatment. That is why investing a significant amount initially to purchase equipment and set up a new facility becomes difficult for many doctors.
To address all of this, financial institutions, including both banks and non-banking financial companies (NBFCs), offer business loans for doctors, known as doctor loans. If you’re looking to start your medical practice and need financial assistance for setting up your new clinic, consider applying for a business loan for doctors in India.
Who Can Avail of Doctor Loans?
Doctor loans are designed to provide financial assistance to medical professionals. This includes doctors, dentists, physicians, podiatrists, and other specialists including Ayurvedic and Homeopathy doctors. Also, these loans cater specifically to the unique needs of medical professionals. They can be used for various purposes, such as purchasing equipment, expanding the clinic, hiring staff, and meeting other operational expenses.
Furthermore, business loans for doctors are available at competitive interest rates with flexible repayment tenure, depending upon your requirement. By availing a doctor loan, you can start a new clinic and provide quality care to the patients, and contribute to the overall well-being of the nation.
Benefits of Business Loans for Doctors
Working Capital:
Starting a new medical clinic can be an exciting yet daunting task as you will have to face a unique set of responsibilities and challenges. It’s like starting a new company, and it requires significant capital. That said, it may not always be feasible to bear these costs out of your pocket. So, a doctor loan offers financial assistance to help you set up your practice from scratch.
Fund Infrastructure Costs:
Premises and infrastructure are important factors when it comes to starting a new medical clinic. The right location and a well-equipped clinic attract patients and build a better name. There are several factors to consider while selecting the location, such as the patients, office space, parking facility, and others. All of this comes at a cost. Also, the cost of setting up the clinic, including furniture, and other items, can be substantial. You can take care of these expenses with the help of business loans for doctors.
Purchase of Equipment:
Investing in high-quality medical equipment is necessary for the success of any clinic. Advanced technology not only helps in the accurate diagnosis and treatment of various illnesses but also aids in performing complex surgeries. Equipment such as ECG machines, electrosurgical units, ultrasound machines, patient beds and surgical tables are essential for any medical practice to stay competitive. For a new practitioner, the financial burden of purchasing such equipment can be overwhelming. This is where a doctor loan can be beneficial.
Add More Staff:
To ensure the optimal functioning of your clinic, you need to hire specialised doctors and additional staff. This will improve delegation, internal communication, and the overall growth of your facility. It is always advisable to have a dedicated team of certified nurses, medical experts, and front office staff to handle various medical concerns. You can use doctor loans to fund the expenses related to hiring staff.
Practice Management System and EHR:
Business loans for doctors can be utilised for digitising the facility’s operations by incorporating a medical practice management system. This system can effectively organise and streamline routine tasks such as appointment scheduling, billing, and other daily operations, resulting in increased efficiency. You can also invest in an Electronic Health Record (EHR) system that is necessary to maintain a comprehensive record and medical histories of patients.
Debt Consolidation:
Debt consolidation is a common reason for individuals to opt for loans, regardless of their profession. It means using a new loan with a low-interest rate to pay off existing high-interest rate debts and obligations. By consolidating multiple high-interest debts into a single loan, doctors can manage their finances better and reduce their overall debt burden.
Eligibility Criteria for Business Loans for Doctors
To be eligible for a doctor loan in India, you must fulfil the following criteria:
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Super Specialist Doctors (MD/ DM/MS):
Doctors who have completed their super specialisation in medical fields are eligible for a business loan for doctors, provided their degree is registered with the MCI or state body.
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Graduate Doctors (MBBS):
Doctors who have completed their graduation in medicine (MBBS) should also have their degree registered with the MCI or state body to be eligible for a business loan for doctors.
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Dentists (BDS/ MDS):
Those who have completed their Bachelor of Dental Surgery (BDS) or Master of Dental Surgery (MDS) and have at least 5 years of experience are eligible for a doctor loan.
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Ayurvedic and Homoeopathic Doctors (BHMS/ BAMS):
Those who have completed their Bachelor of Ayurvedic Medicine and Surgery (BAMS) or Bachelor of Homoeopathic Medicine and Surgery (BHMS) and have at least 2 years of experience are eligible for a doctor loan.
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Applicants Must Be Resident Citizens of India:
Those applying for business loans for doctors must be an Indian citizen.
Documents Required for Business Loans for Doctors in India
When applying for a doctor loan in India, you will be required to submit certain documents to prove your eligibility.
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KYC of Authorised Signatories:
KYC documents include government-issued ID proof such as an Aadhaar card, passport, driving licence, or voter ID card.
Medical Registration Certification:
This is a document that proves the doctor’s registration with the medical regulatory body or the relevant state medical council.
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Other Documents:
Apart from these documents, lenders may also require some additional documents such as proof of income and business plan, depending on their policies and the amount of the doctor loan.
The healthcare sector offers immense growth opportunities for doctors, provided you adopt best practices and make the most of this potential. By providing access to the necessary funds, doctor Loans can be a great resource for medical professionals who are looking to open a new clinic and start their practice. Thereby, doctors can also contribute to building the medical infrastructure of the country.
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