As per reports, India’s healthcare segment is going to reach Rs.37,200 crores mark by 2022, which presents an opportunity for medical professionals to be a part of this growth.
However, to realise this prospect, they need access to advanced equipment and trained staff, but that will require significant investment and needs adequate financial backing. In this regard, business loans for doctors can be an ideal solution.
How can business loans for doctors be beneficial?
- Hiring proficient medical staffs
Doctors run on a busy schedule, from running clinics to surgeries, meeting patients and so on. Therefore, to lower their burden, doctors can utilise their newly attained capital through business loans to hire medical professionals and well-trained support staff like nurses, diagnostic personnel, and operation managers.
Doing so will ensure a seamless running of the clinic, and doctors can avoid the stress of dealing with everything on their own.
- Investing in administrative technology
Funds for a business credit like this can be used to finance an upgrade of the clinic’s administrative technology. Professionals can now invest in an Electronic Media Record System (EMR), which will streamline the working of their clinic and helps to digitise patient records and keep them safe.
- Invest in marketing
Marketing is imperative to let people know about a business, even if it is a medical practice. For instance, if you have installed a new x-ray machine, you should let everyone know about its benefits. This can be done through marketing.
However, marketing is not inexpensive, and doctors can invest their borrowed funds here to make their practice more visible.
- Opening a new clinic
An aggressive marketing plan may result in an increase in footfall, and to accommodate them, professionals will need more space. Hence, they can use their business loan for doctors to expand their existing practice.
Since this does not come with any usage restrictions, they can purchase or take up a property on lease for this expansion.
- Update diagnostic technology
Medical technologies are advancing every year, along with their cost. Thus, professionals can now use these funds to invest and update their existing clinic equipment. For instance, with dental practice loans, professionals can invest and upgrade to the latest in dental laser technology.
At the same time, professionals should also understand the reasons to upgrade these medical equipment how it can benefit them for better results.
Since a financial product like this has no restrictions over its usage, individuals can meet an array of clinic requirements with it. Nonetheless, before applying for one, borrowers should keep in mind some pointers to make an informed decision.
Points to keep in mind before applying for a business loan for doctors.
- Interest rate
Since the interest rate is responsible for the final loan amount, borrowers should compare and evaluate before taking a decision. They can use online calculators to check the final outcome before applying.
- Loan tenor
Loan tenor plays a role in deciding the EMIs, it is important to choose one judiciously and as per the repayment capacity. Borrowers can use online EMI calculators and find a tenor that will meet their repayment capacity.
- Additional charges
Every loan application entails additional charges like processing fees, legal fees, etc. Failing to review them will result in an increase in the total borrowing cost, which can upset the financial planning of a borrower. Thus, they need to be mindful of that.
Apart from these, prospective debtors need to evaluate the eligibility criteria and documentation as well before applying.
Eligibility criteria of a business loan for doctors
To be eligible for this service, one needs to fulfil the following parameters-
- Super specialist, post-graduate, specialised diploma and PG diploma individuals need to have an MBBS degree registered with the medical council.
- BAMS or BHMS doctors need to have at least 2 years of experience from the date of medical registration.
- MDS or dentists need to have at least 5 years of experience from the date of medical registration
Several NBFCs extend loan for doctors against minimal documentation. Lenders typically ask for-
- KYC documents
- Medical registration certificate
With prominent NBFCs like Bajaj Finserv, one can skip this hassle of a loan application. The pre-approved offers available for their exiting customers streamlines this process and is available on products such as business loans, personal loans etc. To check your pre-approved offer, submit your name and phone number.
Considering the enlisted factors will aid a medical practitioner to grow their business as well as reputation through business loans for doctors. However, it is crucial to determine the tenor and other charges before initiating your application procedure.