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Why is a Business Loan for Doctors the Right Choice for Hospital/Clinic Renovation?


Proper hygiene, sanitation, cleanliness, and aesthetics are something that patients demand in every hospital or clinic. That is why the majority of people prefer private medical facilities to public institutions. The Government of India is also taking initiatives for the betterment of state-run hospitals. They constituted a committee under the Chairmanship of Medical Superintendent, AIIMS, New Delhi for the same.

Therefore, it becomes crucial to make your hospital or clinic a standout in terms of medical facilities, sanitation, infrastructure, etc. However, the biggest challenge you may face is to find a financial resource for renovation. Utilising your savings or clinic’s revenue can hurt your working capital.

Here, the best solution is to opt for a business loan for doctors. You can not only renovate your clinic or hospital but also invest in purchasing new equipment, opening a new office, etc.

Few reasons why business loans are the right choice for renovation are as follows.

  1. You can receive ample financing

Doctors and medical professionals can avail up to Rs. 30 Lakh with these loans. It is recommended to use an online loan eligibility calculator to check the amount you are eligible for. The calculator shows the loan you can avail depending on your other existing loans, net profit, income, etc.

Also, make sure to lower your monthly obligations before you apply. Lenders may check your debt-to-income ratio or Fixed Obligation to Income Ratio to find the same. They can reject your application if the ratio is 50% or more. You can maintain your FOIR below 50% by clearing your credit card dues and foreclosing your existing loans.

  1. These loans come with adequate repayment tenor

The repayment tenor for business loans typically ranges from 12 to 96 months. You may look for a longer tenor as it comes with low EMIs. However, it will increase your cost of the loan (principal + total payable interest).

Use a loan EMI calculator to pick the right tenor. This calculator not only helps you calculate your EMIs but also choose a convenient repayment schedule.

  1. Financial institutions disburse these loans within one day

A major reason why a business loan for doctors is one of the most preferred choices is their quick disbursal. Lenders often transfer the funds to your account within 24 hours.

  1. You need to fulfil simple eligibility criteria

Doctors need the following post-qualification experiences to be an eligible borrower:

  • Ayurveda and homoeopathic doctors – 6 years; must also own a clinic or a house.
  • Homoeopathic doctor with DHMS degree – 15 years; must also own a clinic or a house.
  • Graduate doctors – 2 years.
  • Dentists – 5 years.

Super-specialists doctors don’t need any post-qualification experience.

CIBIL score

You may need to hold a CIBIL score of at least 750 to apply for a business loan. Financial institutions require customers to have a high CIBIL score as these are collateral-free by nature. Also, there are several things doctors with a low credit score can do to improve it.

  1. You have to submit a few documents to avail these loans

Many NBFCs can provide you with a business loan for doctors against your medical registration certificate and identity proof (PAN, Voter ID, Aadhaar, Driving License, Passport, etc.) only.

You may also have to produce income tax returns of the previous year and bank account statement of the last 3 months.

  1. Lenders allow part pre-payment of the loan

Part pre-payment is a feature that you receive with business loans. This facility enables you to pay a lump sum portion of the principal when you have excess funds.

Opting for this facility does either of the following:

  • Lowers your EMIs and keep the tenor same.
  • Lower the tenor and keep the EMIs same.

Make sure to understand the fees and charges on a doctor loan before you apply. It ensures that the advance you avail doesn’t become a financial burden when renovating your clinic or hospital. Apply for a business loan for doctors with a reliable lender and finance the expansion of your medical practice effortlessly.