As per a report, by 2022, the healthcare market in India is predicted to reach US$ 372 billion. The prominent factors that can induce such a feat include increased health awareness, a notable increase in lifestyle diseases and better access to advanced quality healthcare.
However, medical professionals have to shoulder responsibility in terms of the quality of service they provide. The same depends significantly on how professionals plan to tap into the ever-changing trends and advancements in the medical field. For instance, the year 2020 brought into light the importance of telemedicine and telehealth enabled clinics.
Keeping up with the latest medical trends or starting a practice that has the edge over competitors often depend on the quantum of funds at disposal. Nonetheless, with the availability of funding options like medical practice loans start up or expansion, professionals can meet any number of expenses. To streamline the process of accessing it, professionals must keep a few simple things in mind.
Things to follow before applying for a medical practice loan
Here are a few factors that professionals need to be mindful of in advance to avail of a medical practice loan easily –
- Know the loan quantum available
At the very onset, professionals should determine the maximum amount they can get sanctioned through the leading funding options. For instance, some NBFCs extend a loan amount of up to Rs.35 lakh to qualifying applicants. Such an amount helps meet high-end operational expenses and can also prove useful for those looking for medical equipment financing. In fact, such a high loan quantum is among the many reasons to take a business loan for doctors.
- Check loan eligibility
To be eligible for a doctor loan, applicants are required to meet a few qualifying parameters. For instance, experienced professionals with degrees like a specialised diploma, PG diploma, super specialists, MBBS, BAMS/BHMS or MDS/Dentist qualify for this loan option. Having an idea about the loan eligibility beforehand minimises the risk of getting the loan application rejected. In turn, it protects a credit report from a hard enquiry. Also, eligible applicants with a clean credit profile and high CIBIL score stand to secure better repayment terms from borrowers.
- Find out the rates and additional charges
Generally, leading financial institutions offer business loans for doctors at competitive rates. Nevertheless, professionals must check the rates out beforehand and compare them with prevailing rates. Beside loan interest rates, individuals should also check the additional charges that financiers levy while sanctioning the loan amount. This offers a complete picture of borrowing cost and helps determine one’s repayment capability more accurately.
- Know about the required documents
To complete the verification process, applicants need to submit a set of documents to the financier. Note that the documents required to apply for medical practice loans for start-ups may vary from one financier to another. However, the most common documents include – KYC, medical registration certificate and proof of income and identity. Usually, leading NBFCs like Bajaj Finserv facilitate simple documentation to expedite the disbursal process.
They also provide pre-approved offers to customers to make their borrowing experience less cumbersome. Such offers are available on financial products like personal loans, business loans, credit cards, etc. You can check your pre-approved offer online with your name and contact number. While at it, individuals may also check out customised loan solutions like medical equipment financing to meet specific funding requirements.
- Look for flexible repayment tenor
A flexible loan repayment tenor comes in handy to select a repayment schedule that suits applicants. Individuals can select any tenor between 12 months to 96 months. However, medical practitioners must note that a longer tenor usually attracts a higher interest rate as most financiers consider it to be riskier. Similarly, choosing a shorter tenor helps borrowers lower their interest burden significantly as the same is computed on an outstanding amount.
Along with these, individuals should also find out how to apply for medical practice loans for start-ups online and offline to choose a method that seems most convenient. Once everything is in order, medical practitioners may proceed to apply for the loan amount. While the other factors are outside the scope of influence of medical professionals, they can still tap into the developing medical trends to improve the quality of service they provide.