These days, a significant majority of professionals prefer to work independently. With faith in their abilities to earn and a demonstrated record of performance in other organisations, they want to set up their own workplaces to meet clients. It’s not just the architects, fashion designers, event planners and computer repair specialists who start their own practice to create a unique identity in their domains – doctors too are interested in independent careers.
Despite a rise in the number of multi-speciality hospitals across cities, many doctors in India still start their own clinics. Indeed, some doctors also go on to establish their own hospitals with advanced equipment, diagnostic labs, private patient wards and operation theatre facilities.
The funding forany medical facility can come through a professional loan for doctors. It’s not just banks that are lending in thisdomain. Due to the high earning capacity of this group of professionals and the stability of their job, non-banking financial companies have also devised customised credit products for them.
If you have a plan to apply for a doctor loan and prefer the digital process of application used by a FinTech company, here are some ways to ensure that your application gets approved:
Pay up on your credit card bills and other loans
Any business finance is granted on the creditworthiness of the applicant. Similarly, in the case of a professional loan for doctors, the lender looks into the credit report of the individual applicant. If you are already debt-ridden due to a home loan, car loan or any other personal loan, it may negatively affect your prospects of getting a new loan for your clinic.
As a general rule, multiple credit products should be avoided. If you are paying EMIs on any other loan, it is advisable to pay off the amount completely (in regular installments or in a lump sum) before you apply for a new one.
Pending payments on credit card bills, phone/Internet service bills and electricity bills also lower the credit score calculated by agencies like the Credit Information Bureau India Limited (CIBIL). Make sure that all of these are regularly paid before their due dates. A clean credit record becomes an incentive for institutional lenders who offer customized loans to professionals in different fields.
Collect all documents in support of your experience and earnings from other hospitals
If you have already been practicing in the medical industry, your skills and earning potential will be reflected in the experience certificates and salary slips from organisations that you have worked with. To increase the chances for approval on your doctor’s loan for clinic, ensure that it is supplemented by the right paperwork. The lender needs to be convinced that you can pay back the borrowed funds with interest and other applicable charges in time.
The documents mentioning your specialisation fields and any appreciation or references from senior doctors should also be gathered to back up the request for the loan. Your IMA registration certificate is a mandatory document to be sent.
If you choose to borrow from a FinTech company, you will not have to physically carry such paperwork to any office. Simply scan them and send the soft copies with your application.
Also, see that you have the bank and IT-related paperwork
In addition to the papers substantiating experience and income, an NBFC lender will also need to see your bank transactions and tax payment records. Even if you do not get salary slips from your current organisation, your bank statements coupled with the Form 16 issued by the employer will reflect upon your financial conditions and how well you can afford to pay back a loan.
Most banks and NBFCs need two years of Income Tax Return (ITR) statements to issue a loan. In India, a majority of the income taxpayers file their tax returns online and it is therefore easy to send the soft copies of such documents to your chosen FinTech lender.
The Know Your Customer (KYC) documents to be sent generally include an identity proof such as a copy of the PAN Card, Aadhar Card, Passport or bank passbook from public sector banks.
Check for all the charges applicable on the loan
You will be paying an interest on your professional loan for doctors. Loans also carry a processing fee that is added to the EMIs. A benefit of taking funds from FinTech companies is that their loan processing charges are usually lower than those of banks and also the traditional NBFCs. While most of these institutional lenders take 2% to 3% of the lent amount for processing, the FinTech companies charge a maximum of 2% with the fee beinglower than that for most clients.
There is no loan insurance premium charged on the FinTech loans and the prepayment penalty is also lesser than that levied by the public and private sector banks. No other concealed charges are applicable.
A major attraction of borrowing from these digital NBFCs is that they do not ask the borrowers for collateral. You will not have to hypothetical any asset for security when you apply for your doctor loan from a FinTech lender.
Explain the purpose of the loan
You may be taking a loan for establishing a clinic, hospital, expanding existing premises or adding new facilities to premises that you already have – by describing the exact reason for funds, you will brighten your prospects of getting an approval. With knowledge of such facts, your FinTech company can also help you determine the right amount for a loan. Why borrow more and pay interest on a larger amount when your needs can be met by a smaller loan?
If you are unsure of the right loan amount for your stated purpose, do not hesitate to discuss the concern with the lender. The company may issue a smaller fund even if you are eligible for a higher amount. This will be to your own advantage. Furthermore, try to keep the loan tenure as short as possible to minimize the interest outgo.
Lastly, subscribe to the resources provided by your chosen FinTech company, such as blogs and newsletter, and also their social media accounts on Twitter and Facebook to stay aware of any updates on their policies.