Medical colleges across India churn out thousands of graduates every year. Though there are public and private hospitals, not all such graduates can be accommodated in jobs. Besides, there is another aspect to consider: many such qualified doctors, whether they have graduated recently or have been working for years, would like to set up their own practice and deliver healthcare services the way they want to. It is not easy to set up a clinic or a small hospital given the requirements of adequate space and expensive professional medical equipment. This is where professional loan in India comes in handy and helps them to get started.
The purpose of professional loan for doctors
The government announced a scheme of Rs. 50 crores to set up healthcare facilities in tier 2 and tier 3 cities. That is one way for medical entrepreneurs to set up multi-facility hospitals. Doctors with or without experience can also avail of a professional loan from banks and from NBFCs for various purposes such as:
- Purchase of property
- Renovation of existing clinic or expansion
- Purchase and upgrades of medical equipments
- Purchase of ancillary equipments for the clinic
- Working capital
Loans are available ranging from Rs 50 lakhs to Rs 5 crores for doctors with or without experience and with appropriate credit rating.
The basic criteria is that the doctor applying for the professional loan must have at least 1 year’s experience, should be between 22 to 65 years of age and should have an income of over Rs 15000 per month. MBBS, BAMS/DHMS/BHMS, MD/MS/DM and BDS/MDS qualifications are necessary in order to be eligible just as a CA degree is necessary for chartered accountants to get a professional loan for chartered accountants. Thankfully, for professional loans for doctors, the lenders only ask for minimum documentation and process loans quickly without the need for collateral. If collateral is provided for the loan then doctors can expect higher loans at even lower rates of interest. There are quite a few benefits of availing professional medical loans for doctors.
Start your own practice at an early age
Setting up a clinic involves considerable expense of several lakhs of rupees. It would take years to put together that amount. Instead, a professional loan for doctors helps you get started at an early age. By the time you are in your 40s or 50s, you are well established and will have repaid the loan or will have expanded your clinic.
You are in control of your life
A job is a job, whether one works as a doctor or as an office worker. By taking the professional loan on favorable terms, doctors start their own venture and are in full control of their professional careers instead of being stuck in a routine job. Doctors can earn more and also have the satisfaction of giving specialized care to patients.
Better terms on professional loan for doctors
The professional loan for doctors can be put to use to buy equipments, expand facilities, set up a clinic or even pursue a course. These loans have soft terms, longer repayment tenure, lower rate of interest and collateral is not required. Documentation is minimal.
Expand facilities, hire staff, buy equipment
The professional loan for doctors is not just meant for doctors to help them start a new clinic. It is also for medical professionals with an established practice wishing to expand their operations such as hiring new staff, adding more equipments, setting up branches in other parts of the city or renovation.
Enjoy better status in society
There is a difference between working in a hospital, however large and reputed it is, and running your own hospital. It brings a special status in society and you develop your own client base and your reputation as an individual and as a professional.
Give specialized care to patients
Specialist doctors may not find an outlet for their specialized skills when they work in hospitals as employees. They cannot develop their own treatment plan. When you are master of your own clinic or hospital developed with the help of a professional loan you can deliver specialized care to patients. For example, you may have studied and worked abroad and would like to apply modern techniques here in India. With your own clinic and with you in control, this is possible.
Enjoy a better family and personal life
As an employee it may not be possible for doctors to take time off when they like to attend to their personal lives. When you run your own medical facility you do have more responsibilities but you also have the freedom to manage your personal life in a better way.
Work where you want to
Consider that the government now offers loans to set up medical facilities in tier 2 and tier 3 cities and that banks and NBFCs offer loans to set up your own private practice. You can relocate to any small or large city and set up a flourishing practice in just a few years with the help of a medical professional loan for doctors.
Before you choose any specific lender be sure to evaluate them because rate of interest, amount available and terms vary from one to the other in the matter of professional loan for doctors.