According to a recent report in Q1 2020, India needs to add at least 10 lakh doctors to the nation’s healthcare force to meet the world average. It means the existing medical practices must be upgraded to encourage young professionals and aspiring doctors.
A suitable doctor loan from a reliable financial lending institution can thus be of great help for professionals willing to expand their practice.
Several lenders offer customised business loans for doctors so that they can manage cash flow efficiently along with maintaining healthy working capital levels. Take a look at how doctor loans can help expand the medical practice. Also discussed are the primary doctor loan eligibility criteria to help prepare for its application.
How can a loan for doctors help upgrade your practice?
Practice operations are challenging for independent doctors as they need to focus on multiple factors beyond diagnostics and treatment. Similar sets of challenges surround those serving at hospitals. Availing a doctor loan from a lender can play a significant role in expanding the professional’s practice. Here’s how.
- Invest in the latest medical equipment
Doctors can use the funds availed through a loan for doctors to purchase state-of-the-art diagnostic and treatment equipment. It will help them offer superior treatment and medical aid to patients, thereby increasing their professional outlook considerably.
Running an independent clinic or diagnostic centre further requires multiple equipment of the same or different type. Hence, it requires heavy investment, but availing a doctor loan based on the individual’s requirement can be helpful.
- Hire skilled professionals
Doctors can also expand their practice by increasing the scope of their services and hire skilled professionals.
Sensitive instruments like an MRI, X-Rays, and Ultrasounds etc. should be handled by skilled technicians only. It is thus advised to hire equipment specialists, but that can be a costly affair for doctors. However, they can use the amount borrowed through a doctor loan to hire specialists, thereby streamlining business operations.
Besides that, they can also invest in off-line or on-line marketing campaigns to increase their business outreach and acquire more customers.
- Fund renovations
A primary way to expand one’s medical practise is to enhance the existing healthcare facility. If an individual meets the doctor loan eligibility criteria, he/she can avail a reasonable business loan and invest the same to fund renovation work.
For example, borrowers can expand the space in the clinic’s waiting room to make it more comfortable for the patients. They can also build more consultation rooms or add an in-house pharmacy. The costs per square foot depend on the location or the particular city.
Apart from these, professionals can also use the availed cash advances to branch out to other locations and develop their skills further by undertaking specialised courses. Advanced facilities are the primary reasons why individuals consult with a specialist doctor and other medical practitioners.
Before applying for a doctor loan, it is ideal to take a look at the eligibility criteria for the same.
Doctor loan eligibility criteria
Listed below are the usual eligibility criteria as followed by most lending institutions. However, some lenders might require you to meet additional criteria.
- Documents
Most business loans for doctors provide quick approvals with minimum documentation. The primary documents required are:
- KYC documents of the authorised signatories
- The doctor’s medical registration certificate
- Experience
- No minimum post-qualification experience is required for super speciality doctors, including MS, MD and DM degree holders.
- For MBBS degree holders, documents certifying a minimum of 2 years of experience after qualification are required.
- Dentists (BDS/MDS) need to submit documents certifying their experience of at least 5 years after qualifying.
- In the case of Ayurvedic and Homoeopathic doctors (BHMS/BAMS), they need at least 6 years of experience post qualification to be eligible for a doctor loan.
Financial institutions like Bajaj Finserv further offer business loans for doctors at attractive interest rates that make it affordable for the professional to pay EMIs comfortably.
The lender also extends pre-approved offers on loan products like business loans and personal loans. Borrowers can thus avail a loan without any hassle and quickly with these offers. They can easily check the pre-approved offer by entering their basic contact details.
So, it is imperative that doctors expand their practice as well as up-skill themselves to offer state-of-the-art treatment to patients besides improving their own financial outlook. They can thus consider opting for such a loan. However, before that, they must be clear of the reasons to take business loans for doctors for an informed financial decision.
Recent reports suggest that India needs at least 10 lakh doctors to meet the world average. This means existing medical facilities and practising doctors must take essential measures to expand the scope of their services. Several measures can be taken to do so with a suitable financing option in place.
