How to Get The Best Options for A Medical Practice Acquisition Loan?

Author : asheesh-sharma12
Publish Date : 2021-03-11 08:18:15
How to Get The Best Options for A Medical Practice Acquisition Loan?

Medical practitioners planning to start their own venture need to invest substantial funds on medical equipment, hiring expert staff, purchasing imaging and diagnosis machines, and more. However, the cash crunch can become a barrier in achieving these dreams. 

In such cases, an individual can avail a medical practice acquisition loans that are customised to suit the financial requirements of a medical professional. Individuals can easily opt for this collateral-free advance from reputed financial institutions and enjoy speedy disbursal and competitive interest rate. Interested borrowers must, however, compare different factors before availing this loan for healthcare finance professionals.

Factors to check before availing medical practice acquisition loans

Compare lenders

The first task of every borrower before initiating application should be comparing different lenders. This will help in finding the compatible interest rate and services for a longer duration. Ideally, interest rate effects one’s repayment capability and EMI structure. In this regard, determining the times one’s medical practice needs financing would streamline the loan application process.

Check repayment capability

An individual applying for a loan for doctors must check his/her repayment capability. The repayment period is the tenor in which a borrower repays the principal and interest component to lender. Opting for a short credit tenor is always lucrative as it reduces the risk of a debt trap. This also encourages timely repayment, thereby improving a borrower’s creditworthiness. Ideally, borrowers possessing a 750+ CIBIL score are preferred by lenders who find the borrower reliable in terms of timely repayment.

In this regard, a medical practitioner can check ways for doctors to increase their CIBIL score for a swift loan application.

Determine eligibility criteria

Ideally, the eligibility criteria against medical practice acquisition loans are straightforward and simple. A potential borrower needs to clear the parameters like-

  • Ayurvedic and homoeopathic doctors- Individuals under this category must have a six-year work experience 

  • Super specialist- Under this category, borrowers must get their MBBS certificate registered with the Medical Council to avail the loan.

  • Dentist- Borrowers with this qualification must have a minimum of five-year experience in the profession from the date of registration.

  • MBBS- Individuals with this degree can avail the advance post registration with the Medical Council.

Know the documentation

This credit variant requires borrowers to submit minimum documentation. Ideally, doctors have to submit documents like-

  • KYC documents like PAN card, Aadhaar card, voter card, license, etc.

  • Medical registration certificate

Determining the documentation process beforehand also helps to quicken the application process. 

Estimate the loan amount

Evaluating the exact amount required to manage a medical practice is recommended before initiating the application. A potential borrower must make a list of requirements and liabilities to find the amount required to be sanctioned. Under ideal circumstances, an individual should borrow only the necessary amount to avoid burdening their finances during repayment. 

If one needs substantial funds for big-ticket expenses like purchasing medical equipment or upgrading treatment techniques, searching for a suitable lender would be beneficial. For instance, NBFCs like Bajaj Finserv under their loan for doctors extend an amount up to Rs.35 lakh.

They also provide pre-approved offers to help expedite the loan application process. These offers are applicable on selected products like personal loan, business loan, etc. Check your pre-approved offer by entering a name and contact number.

Apart from noting these features, an individual can check whether the financial institution offers balance transfer facilities. Moreover, opting for a lender offering foreclosure and prepayment facilities against zero charges will help in optimising savings.

Availing medical practice acquisition loans is a crucial decision for a doctor’s career. This credit form comes with considerable funding and affordable repayment tenor. So, research well and opt for a medical loan by following the factors discussed above for hassle-free approval and disbursal.

Category : business

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