Choosing a loan provider is relatively easy nowadays. Studies released by the Reserve Bank of India show that around 96% of all loans disbursed by NBFCs in 2018 were personal loans. However, a doctor loan is one of the mostly availed types by medical professionals. It helps a doctor meet all immediate liquidity issues and repay the amount in easy affordable monthly instalments.

Before availing the loans for medical professionals, there are certain questions that must be asked of the lending institution. The terms and conditions of the loans must also be read carefully.

Given here are 6 of the most important questions you as a doctor need to ask before applying for a loan.

6 most important questions to ask before taking a doctor loan

Before you decide to take a doctor’s loan from a financial service provider, be sure to ask these important questions.

How much money can you avail as a loan? Different NBFCs have different upper limits when it comes to loans for doctors. Bajaj Finserv, a well-known lender, offers up to a maximum of Rs. 2 Crore.

How much and how many EMIs do you have to pay? EMIs are tricky. While there are EMI calculators online, they do not provide all the answers. Discuss with the representative who is processing your loan and knows every detail of your loan repayment schedule. Know the doctor loan interest rate and repayment tenor before applying. Choose to pay higher EMIs while reducing the loan tenor, or vice versa according to your preferences. 

It is advisable to apply for a home loan only after a proper financial planning. Such planning will make you understand your repayment capabilities and let you pay EMIs with ease.  

How easy is the application process? If you are in a hurry to avail a loan, long and troublesome documentation processes are a strict no-no. Always ensure that your loan application process is easy and takes minimum time.

Are there any value-added services? Lenders may offer doctor loans that come with a series of added services at no extra cost. You can ask for a professional indemnity insurance, assistance in other financial sectors including loans, etc. For example, if you are looking for a home loan, you can always ask for a property dossier.

What are the hidden fees? Most loans have hidden charges which are not disclosed immediately. These hidden charges are over and above the interest. They may include processing fees, any foreclosure charges and a fee on part prepayment. You must make sure your NBFC agent clarifies all these hidden factors. This will make repaying your loan for the doctor a much easy one.

How fast is the loan amount disbursed? NBFCs disburse unsecured loans directly into your bank account within 24 hours. If all the documentation is in place, even secured loans are approved within 24 hours.

A few other general points

There are a few factors which you must not forget while availing a doctor loan.

1. Graduate doctors with only MBBS degrees need at least 2 years of service experience before they can apply for any physicians’ loan.
2. Dentists (BDS/MDS) need 5 years of work experience. 
3. Super specialists (MD/DM/MS) do not need any experience to avail a loan. This is why more and more doctors are opting for such super-speciality degrees.

Once you know the answers to all these important questions, decide on the lender that provides you with the benefits aptly suiting all your requirements.