Everything You Wanted To Know – Doctor Loans

Everything You Wanted To Know – Doctor Loans

February 27, 2020 0 By Saahil

A “doctor loan” or physician loan makes the borrowing process faster and easier for residents, attending physicians and other medical professionals to help them fulfill their dream of setting up their medical clinic or hospital.

A personal loan for doctors is secured as well as unsecured in nature. For unsecured doctor loans, financial institutions usually follow their own set of policies before sanctioning a loan. There are few tips which will help you to improve your chances of getting your loan application approved. They are as follows:


Tips to Improve Chances of Getting Personal Loan for Doctors:

Improving Credit Score: It is vital to have a higher credit score for personal loan eligibility. Having a lower credit score can get your loan application rejected by the lender. In contrast, a higher credit score above 750 increases the chances of getting your loan approval with a lower interest rate.

Choosing the Bank/NBFC: Multiple banks and finance companies offer doctor loans schemes at an attractive rate of interest. Therefore it is suggested to do thorough research on who is offering the best rates on doctor loans. The challenge is to identify the best financial platform which offers fast service with a low-interest rate. Alternatively, you may also opt for a financial institution which provides high eligibility at higher interest rates, if you have a higher loan amount requirement. You can negotiate and apply for a loan through online marketplaces to get the best deals on rates and processing fee.

History of business/practice: Financial institutions typically consider giving a loan to doctors with a minimum of three years of practicing experience either as a salaried or a self-employed. In case your practice is new or loss-making, the chances of your application getting approved are dim.

Applying for a loan amount based on your repayment capacity: Let’s assume that you need a loan amount which is higher than your eligibility, it can create doubt in the mind of the lender and lead to the rejection of your application. So it is essential to choose the correct loan amount that you can comfortably service.

Maintaining appropriate financial information: It is essential to have your GST registration in place and to keep an audited record of your financial statements. Most of the time, lenders will scrutinize the bank statements of self-employed doctors before deciding to lend.

Eligibility: You may be eligible for a medical loan in India from one or more financial institutions if you meet the following eligibility conditions:

  • Self-employed doctors who can be sole proprietors, who belong to partnership firms/ private limited companies/ public limited companies
  • Individuals with a minimum age of 21 years and maximum age of upto 68 years qualify for a personal loan eligibility
  • Financial institutions provide loans upto a period of 5 years depending upon the doctor’s age. However, some of them also restrict the maximum tenure to 3 years
  • Processing Fee can be upto 2% of loan amount + applicable tax
  • Minimum Qualification is BHMS/BUMS degree to qualify a loan
  • Applicants should have an IMA (Indian Medical Association) membership number or any other registration allowed by Indian Government

Documents required: These are as follows –

  • Duly signed Application Form
  • Education Qualification Certificate
  • Identity Proof (PAN)
  • Residential Address Proof
  • Latest six months salary slip for salaried
  • Last six months bank statement
  • Last two years ITR
  • Copy of Memorandum of Association (MOA) for Private Limited Company or Copy of Partnership Deed for a Partnership Firm
  • Original hypothecated Invoice in case of Medical Equipment Finance Loans
  • Insurance Policy duly endorsed in favour of the bank/ NBFC for the assets given as security.
  • Collateral security & guarantor


Almost all financial institutions offer lucrative schemes on Doctor Loans at competitive rates with many features. One can compare rates, check your eligibility, calculate EMI, apply online and get the best Doctor Loan rates in the market.