doctor loan

A medical loan is a type of unsecured personal loan offered by financial institutions that require minimal documentation and a high credit score of 750. This particular loan type literally covers a variety of medical treatment related expenses starting from hospitalisation, pathology, surgeries, therapy and dental treatments to cosmetic treatments and so on. Some of these treatments are not even included in a health insurance policy. The interest rate for a medical loan generally starts at 11.25% for a tenure up to 72 months.  

We are all well accustomed to a variety of loans and their unique criteria, however quite often, applicants get confused between medical loans and doctor loans. As both of them turns out to be synonymous in terms of their name. But when studied in detail are the exact opposite to each other. A medical loan generally serves the purpose of medical emergencies that are not covered under health insurance or are for the applicants who do not have health insurance at all. While on the other hand, a doctor loan is precisely for doctors with 2 years of practice experience. Moreover, the doctor loan interest rates are lower than the medical loan interest rates.

If you are planning on applying for a medical loan, here are the things you should know –

The purpose of the loan

Medical loans can be taken for your loved ones or yourself to cover the expenses for a wide range of medical treatments. Depending on your eligibility criteria and the lender, the maximum loan amount varies. The minimal loan amount is Rs. 1,000 with an upper limit of Rs. 75 lakhs.

Now, if you are a doctor by profession, you have the option to opt for a doctor loan. It is a better choice since the doctor loan interest rates are lower and the possibilities are endless. From operation expansion to opening a new clinic, extending the number of staff, purchasing medical and health equipment and so on. Since the doctor loan amount depends on the borrower’s educational background, the sanctioned loan is higher as well. The minimum amount for a doctor loan is Rs. 25,000 which can be extended up to 5 crores with a flexible tenure period. If you are opting for an SBI Doctor loan, you need to pay just a 9% interest rate which is much lower than a regular medical loan. So, knowing the purpose of taking the loan is crucial. It will help you to make the right choice. 

Eligibility criteria

If you are within the age range of 21 to 58 years with a regular income of minimum Rs. 20,000 per month, you are eligible to apply for a medical loan. Since medical loans are unsecured, they do not involve any collateral. That is why a stable credit score of 750 and above is necessary to get the loan approved in real-time.

How to apply 

To apply for a medical loan, firstly, it is important to look for a valid lender by conducting thorough research. It is important to get clarity by comparing the loan interest amount, repayment procedure and tenure proposed by various lenders. Based on your requirements, you can make a selection of the most befitting lender. 

Once you are sure about the lender, you can proceed using online as well as offline methods and get the loan application form filled as early as possible. 

Documents required:
  • KYC
  • Bank statement 
  • Income certificate and credit report

Medical loan repayment criteria

After you have received the loan amount and the medical emergency has been taken care of, now it is time to get the loan amount repaid. Using regular EMIs, your medical loan amount can be repaid. If the tenure is for a longer period of time, the interest amount will be higher. On the other hand, if your tenure is for a shorter period, the interest amount will be comparatively low. You can choose the repayment process at your convenience. 

It is important to understand that a medical loan is not the same as health insurance. Where health insurance works as a precautionary measure, a medical loan serves as an emergency financial protector.  

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