The advancement of medical technologies has made healthcare expensive not only for patients but also for medical professionals. Setting up a medical practice, upgrading it with modern equipment, hiring qualified staff - all these involve a considerable investment. And utilizing your savings for the same can get a lot troublesome.
This is when medical professionals can approach reputed NBFCs in India to avail healthcare finance and meet every requirement effortlessly.
These organizations offer you the necessary cash along with features which make it beneficial to fund your medical practice.
Following are some of the things medical professionals should know about healthcare financing.
High funding options
NBFCs can provide funds up to Rs. 30 Lakh. You can utilize this capital in any way without any restrictions. Purchase the must-have point-of care equipment, lease or buy a property, hire personnel, or make any other related investments.
Flexible repayment period
The repayment period for healthcare finance can range from 12 to 96 months. You have the freedom to choose whichever term that suits you.
Do remember that a longer tenor will have lower EMIs compared to shorter tenors. On the other hand, shorter tenors will decrease the total interest that you pay.
Consider the following example:
Your total interest will be Rs. 1,82,591 on a loan worth Rs. 5 Lakh at 13% rate of interest (for example) with a loan tenor of 5 years.
The same loan will have a total interest of Rs. 106,491 if the tenor comes down to 3 years.
Requires only a few documents
You have to provide a few documents like KYC documents and Medical Registration Certification when availing healthcare finance.
NBFCs may also require additional documents like income tax returns, bank account statements, etc.
Requires simplistic eligibility criteria
The eligibility criteria for loan for medical professionals differ with NBFCs. You generally need some post-qualification experience to apply.
For example:
- 2 years for graduate doctors who have completed MBBS.
- 5 years for dentists who have completed BDS and MDS.
- 6 years for Ayurveda and Homeopathic doctors who have completed BHMS and BAMS.
- 15 years for Homeopathic doctors who have completed DHMS.
Super specialist doctors who have completed MS, MD, or DM may not require any post-qualification experience.
Pre-approved offers
NBFCs like Bajaj Finserv provides pre-approved offers that save you time when availing financing by making the process simplistic.
Loans in under a day
Applying for these finances is simple and can be done by filling up an online form. Doing so will enable you to avail the loan in under 24 hours.
Things to remember before you apply:
i. Lower your debt-to-income ratio
Make sure to clear your outstanding fixed monthly debt before you apply for financing. Close your existing loans and pay your credit card bills to help yourself to lower financial liabilities. Generally, NBFCs require applicants to have a debt-to-income ratio of 50% or less.
ii. Have a credit score of 750 or above
Loan for medical professionals are unsecured and collateral-free. Thus, NBFCs look towards a customer’s credit score as security when sectioning the same. Ideally, financial institutions require a CIBIL score of 750 or more. As a doctor, you can opt for several ways to increase your CIBIL score.
iii. Avoid multiple simultaneous loan applications
Lenders inquire about your credit score and report whenever you make a loan application. Each enquiry lowers your CIBIL score; several such enquiries will decrease your score drastically. Hence, refrain from applying to multiple financing across institutions.
iV. Use a loan eligibility calculator
Using a loan eligibility calculator before you apply will show the loan amount you are eligible for depending on your outstanding EMIs, credit card debt, income, etc.
Consider these points mentioned above before you apply for healthcare finance. Make sure to manage the loan responsibly and pay all the EMIs in due time.