With 9,507 registered NBFCs in India as of 31st January 2021, the prerequisites to avail of a doctor loan vary massively. Eligibility criteria are the main checkpoints for unsecured loans as no collateral or guarantor is involved. Apart from that, there are few other requirements common to most lending companies. Getting a loan for a doctor becomes easier if certain tips are followed.
Tips to avail a doctor loan successfully
- Meet the minimum eligibility criteria
Every lender brings a unique set of eligibility criteria that borrowers need to fulfil. For example – MBBS degree holders should have post-registration with the medical council. Again, MDS degree holders or dentists must have 5 years of experience starting from the date of medical registration. The same for BHMS/BAMS is 2 years from their registration dates. Individuals having done PG diploma, post-graduation, specialised diploma, etc., must hold at least an MBBS degree registered with the medical council.
2. Keep all documents updated and handy
Nowadays, reputed non-banking financial companies have eased the credit availing process by simplifying documentation. An eligible borrower can avail of a doctor loan with minimum documents only. These usually include KYC documents, such as Aadhaar card, PAN card, Driving License, etc. of authorised signatories, certificate of medical registration and financial papers. Make sure you keep all the documents needed to apply for a doctor loan updated and ready. This will fasten the application process and also enhance your eligibility.
3. Keep your FOIR low
FOIR stands for fixed obligation to income ratio. It is another crucial variable that helps in the assessment of a loan applicant’s repayment capability and eligibility. The individual’s total debt, along with his/her monthly salary and additional income, are considered to calculate FOIR.
The thumb rule says maintain FOIR below 30% to 50%. The lesser fixed obligations you have, the stronger are your financial and loan repayment capabilities. Below are some ways to bring down the FOIR and enjoy hassle-free approval:
- Pay off smaller debts before applying for fresh credit
- Refrain from maintaining multiple loans at a time
- Make on-time payments of bills and dues
- Always keep your credit utilisation ratio low
- Avoid changing your jobs frequently
By improving eligibility, not only does your application process speed up, but you also enjoy reasonable doctor loan rates.
4. Maintain a positive repayment history
Lenders assess credit reports where records of individuals’ repayment history are kept. Whether you have paid off previous debts on time or defaulted contributes to the assessment of your creditworthiness. Hence, make sure to maintain a clean repayment history throughout by following a financial discipline in life.
5. Keep your CIBIL score high
CIBIL, one of the prominent credit information bureaus in India, assigns credit scores to every individual. Also known as the CIBIL score, it is calculated based on several factors, including repayment history. This score denotes how you have handled money or debts in the past and how you are going to manage the professional loan now.
CIBIL score is evaluated on a scale of 300 to 900, where 750 is the qualifying threshold for a doctor loan. Hence, maintain a credit rating of 750 or above to increase your chances of approval. You can also check out what doctors with a low credit score do.
6. Avail the loan amount that you qualify for
Reputed lenders usually offer high-value professional loans of up to Rs.42 lakh. However, the maximum amount you can avail depends on your eligibility. Seeking an amount more than what you qualify for may complicate the process and also lead to rejection. You can try out online eligibility calculators for a precise assessment and apply accordingly to enjoy the best doctor loan rates.
At the same time, be assured of your purpose. Although collateral-free professional loans come with no end-use restriction, knowing the utility helps you seek the required amount easily. Some of the purposes of taking a loan for doctor are:
- Purchase of modern diagnosis machinery and other medical equipment
- Expansion of clinic or medical practice
- Hiring trained and certified professionals in the team
- Investment in infrastructure
- Consolidate multiple smaller debts
Besides these, a doctor loan can also be used for personal purposes like financing children’s higher education, wedding, foreign travel, home renovation and more.
7. Apply through online application forms
Once you meet all the eligibility criteria, choose online applications for a simple and quick processing. Fill up the form with personal and professional details as required accurately. Hand over necessary documents to the lender and receive the sanctioned amount in your account.
Leading NBFCs like Bajaj Finserv have made loan applications easy through their online application forms and minimum documentation. Existing customers can avail their exclusive pre-approved offers for the less complicated and faster application process.
Pre-approved offers not only make the loan processing easier but also less time consuming. Such offers are available on a host of financial products, including personal loans, business loans, etc. To check your pre-approved offers online, provide a few details like name and contact number only.
As part of the evolving healthcare industry, doctors require additional funds to finance their growth and diverse other needs. Following the above tips shall help them make the credit application successful while qualifying them for lower doctor loan rates in India.