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As per the Medical Council of India data, the total number of doctors in India stands at around 10.22 lakh. Considering the population of India, it’s a relatively low number; the doctor-population ratio is 1: 1668, which is less than the WHO prescribed ratio of 1:1000.
Government health establishments are always stressed beyond their capacity, which is why individual practices have become ever so crucial in the Indian medical context. However, such endeavours are capital-intensive. Physician mortgage loans have proved to be a handy financial tool in the hands of doctors to fund multiple such expenses.
What is physician mortgage loan?
A mortgage loan is when the credit is sanctioned against a property. The financial institution keeps the property as a guarantee until the time that the loan amount is repaid in full. Note that it is just a transfer of interest and not a transfer of ownership. Once the loan is repaid, the borrower retains full ownership of their property again.
Financial institutions offer tailor-made mortgage Loan for Doctors. There are essentially two types of physician mortgage loans-
- Home loan for doctors
- Loan against property for doctors
Both these types of credits have comparable features, with one notable exception – end- usage restrictions.
Home loan for doctors has to be explicitly utilised in matters concerning the purchase, or construction of a property.
Loan against property comes with no end-usage restrictions and can be used for any purpose the borrower sees fit. It can be used as healthcare finance for professional reasons such as to set up their clinic or buy medical equipment, as well as personal reasons such as arranging for a wedding or funding children’s higher education
Apart from that one key difference, these two types of credits share comparable features. Here are some of the features and advantages of physician mortgage loans which you may find beneficial-
- Avail a high loan amount of up to Rs. 2 Crore to fund multiple expenses.
- The repayment tenor is flexible and ranges up to 18 years, thereby reducing the EMI burden. Shorter tenor reduces the total interest payable, whereas a longer tenor reduces the EMI amount.
- The application process is quick, and approval is typically within 24 hours.
- Manage your loan account online anytime from anywhere.
- Part-prepay or foreclose your loan with minimal fees.
- Doctor loan interest rate is quite competitive, ensuring it doesn’t put excess stress on their finances.
Additionally, NBFCs also provide their Flexi Loan facility, which enables you to withdraw multiple times from the loan pool and pay interest only on the withdrawn amount.
Easy eligibility for a doctor loan
The eligibility criteria for doctor loan are quite straightforward. Here’s how to be eligible for a doctor loan.
- You should have a valid medical registration certificate.
- You must have a minimum post-qualification experience. The duration varies for different types of practitioners –
- Super specialist doctors – 3 years
- Graduate doctors – 3 years
- Dentists – 5 years
- Alternative medical practitioners – 6 years
If you meet these eligibility criteria, you just have to submit your KYC, registration certificate, practice certificate, IT returns for last 2 years and copy of the documents of your mortgaged property to apply.
There can be many reasons to avail a doctor loan. Whatever it is, avail one today and ease your financial burden.
