Personal Loan for Doctors

How Doctors/Medical Professionals Can Improve Loan Approval Chances

• Check the eligibility criteria before applying for a personal loan.
• Build or improve your credit score to a minimum of 750 and above, as preferred by most lenders.
• Submit required documents, including identity proof, medical registration certificate, income proof, degree certificate, etc, to avoid delays or rejection.
• Make sure your EMI does not exceed 50-55% of your NMI. To improve your chances:

         Limit your existing loans and credit card EMIs, or

         Choose a longer repayment tenure or prepay (if you have adequate funds) to reduce the EMI burden.

• Avoid making multiple personal loan applications within a short duration. Multiple applications show that you are a ‘credit hungry’ borrower and may have difficulty in repayment, which may lead to loan rejections by some lenders and lower your credit score.

Personal Loan Schemes for Doctors

Given below are a few personal loan schemes for doctors offered by some of the leading banks and NBFCs in India:

1. IDFC FIRST Bank Professional Loans for Doctors

IDFC FIRST Bank offers collateral-free professional loans to doctors for skill upgradation, expanding their practice, improving cash flow, purchasing equipment, etc. The bank offers loans of up to Rs 1 crore and instant loans of up to Rs 30 lakh for repayment tenures of 7 years.

Interest Rate: 11% p.a. onwards

Eligible Applicant: MD, MBBS, BHMS, MDS, BAMS, BDS, Veterinary and Physiotherapist

Tenure: 1 to 7 years

Loan Amount: Rs 5 lakh to Rs 1 crore (Up to Rs 30 lakh instant loan based on professional qualification)

Age Limit: 23 years to 68 years (Minimum 21 years if parents are in the same profession)

Profitability: Positive net worth and cash profit in the last 2 years

2. DBS Bank Doctors Loan

DBS Bank offers doctors loan to dentists, or any other medical practitioner in allopathy, dentistry, alternative medicine and for various other fields. The applicant can use the funds for setting up a clinic or buying medical equipment or purchasing an ambulance, etc. The bank considers the applicant’s income, years of practice, medical degree, repayment history, credit score, etc., before approving the loan application.

Eligible Applicant: Resident Indian Salaried/Self-Employed

Tenure: 1 to 5 years

Age: Above 21 years

3. HDB Financial Services - Loan for Doctors/Medical Practitioners

HDB Financial Services offers personal loans to individual doctors and medical practitioners without any collateral. The applicant can take a loan for meeting professional requirements, purchase of medical and diagnostic equipment, development of a clinic or clinic-cum-residence, nursing home or pathological laboratory, setting up of an operation theatre, etc.

Eligible Applicant: Graduate Doctors (BDS/MBBS)/Post Graduate Doctors (MD/MS/MCH/DM/MDS)

Tenure: 1 to 5 years

Age: Maximum 65 years on the date of sanction of the loan

Experience: Minimum 4 years of post-qualification experience

Other Eligibility Criteria: Should have own house or clinic (Parental or own house in any location where HDBFS operates)

4. PNB Doctor`s Delight - Personal Loan Scheme To Doctors (Secured)

Punjab National Bank personal loan to doctors for up to Rs 20 lakh or 24 times the monthly gross salary/income, whichever is lower. Doctors can use a personal loan to meet the expenses of their professional or personal requirements. The bank does not levy any prepayment charges.

Interest Rate: 10.50% p.a. onwards

Loan Amount: Rs 2 lakh to Rs 20 lakh or 24 times monthly gross salary/income, whichever is lower

Tenure: Up to 7 years

Security: Tangible Collateral Security of the value of 100% of the loan amount

Processing Fee: 0.90% of the loan amount

Eligibility Criteria

The personal loan eligibility criteria for doctors vary from one lender to another due to varied lending risk policies and applicant’s credit profiles. Some lenders also allow medical students to avail doctors loan, subject to certain terms and conditions. Here are the general eligibility criteria considered by most personal loan lenders:-

Age: 18 to 60 years

Employment: Consultants, physicians, practicing professionals working in a government, private hospital or a clinic

Profession: MBBS, BDS, MD, MS, MDS, BAMS, BHMS, BPT or other medical degrees

Minimum Monthly Salary: Usually, a minimum Rs 15,000 per month for salaried

Credit Score: 750 or above is usually considered; having a higher credit score increases the chances of availing personal loans

Income: Minimum net annual income required is Rs 5 lakh for self-employed

Practice Vintage: Minimum 2 years of post-qualification experience