Medical practitioners often need external funding to meet various professional expenses, which would otherwise be too taxing on their savings. To that end, individuals can consider several options to avail a business loan for doctors.
One of these is a doctor loan, which is specifically tailored for a medical practitioner’s professional needs. Individuals can avail up to Rs.25 lakh as a business loan for doctors with lending institutions like Bajaj Finserv, which can be repaid over a term of 5 years. Such a loan does not involve any or collateral as well, unlike other forms of professional loans.
Doctors can utilise their credit cards to avail a business loan. Such a loan is provided against the utilized credit limit. It is ideal for meeting smaller expenses in practicing medicine. The repayment tenure for such a loan is usually much shorter, like 3 months. In case a doctor’s payments are stuck due to unsettled medical insurance claims, he/she can avail a loan against those to meet shortages in cash flow. It’s called medical factoring, which several small lenders in India provide.
Individuals can also avail funds via peer to peer financing. However, they often involve an uncertain disbursal period and might entail exorbitant interest rates. If a medical practitioner’s credit score is low, he/she can also opt for a secured business loan for doctors as well.