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Professional loans for doctors, architects, chartered accountants are becoming highly popular in recent years. As more professionals are setting up their own practices or looking at expansion of their professional services, more banks and NBFCs loans are opening up for them. Business loans for doctors are offered by most leading financial institutions. Whether it’s for opening a new clinic, or buying medical equipment, or hiring staff and assistants, small business loans for doctors are making it easy for medical practitioners to get funding when they need it most.
On that note, let us learn more about business loan for doctors in India, leading banks/NBFCs offering loans for medical professionals, interest rates, loan amount and key characteristics of doctors business loan.
What is a business loan for doctors?
A doctor – whether expanding this clinic or beginning independent practice, will require funding for different purposes. Funds can be required for paying rent, buying or upgrading equipment, hiring assistant medical professionals, investing in infrastructure and software (e.g., billing software), designing marketing collateral for promotions etc. In brief, there will be funds required.
That’s where business loans for doctors come in. Banks and financial institutions offer funds to enable doctors to expand and grow their business. These loans, often categorised as professional loans are offered with or without collateral and is based on the creditworthiness of the doctor/medical practitioner/business, their financial statements, and academic qualifications.
Salient features of professional loans for doctors
Business loan for CAs is another category of professional loans that lenders offer. And like CA loans, most lenders have specific features, loan amount, and interest rates for small business loans for doctors.
HDFC Bank Loan for Doctors
HDFC business loan for doctors long repayment tenure India, makes it convenient for borrowers to apply for the loan. The loan approval process and disbursal are quick, and requires simple documentation. You can apply for HDFC business loan for doctors by visiting their website: hdfcbank.com/personal/borrow/popular-loans/business-loan-for-doctors
|Features||Loan amount: Up to ₹75 lakhs based on the borrower’s credit history and loan repayment of any other loan
Tenure: HDFC business loan for doctors long repayment tenure allows 12 to 72 months tenure based on borrower’s repayment choice
Balance transfer: Yes, can reduce existing EMIs and transfer balance to HDFC. Interest rates as low as 10.75% + ₹7,999/ as processing fee + GST
|Eligibility||· Practicing or consulting doctor
· 4+ years professional experience after degree (5+ years for physiotherapists)
· Age: 25 years – 65 years (at the time of loan maturity)
· Projection of at least ₹1 lakh/ annum + profit making for 2+ years
|Documents required||· Education qualification certificates
· MCI Registration Proof
· Identify and Address proof: Aadhaar, PAN, Voter ID, Passport, DL
· 6+ months bank statement
· Latest ITR + 2 years audited P/L and balance sheet
· Proof of continuation (e.g., ITR, Sales Tax certificate)
· Sole Proprietary Declaration, Partnership deed and other document proof
Also read about: HDFC Bank business loans
Axis Bank – Business Loans for Doctors
Axis Bank offers long and short term business loans for doctors. You can apply for the doctors loan online and choose flexible EMI options to repay your loan. The loan amount can be used for purchasing medical equipment, setting up or expansion of existing clinic/establishment, and other related activities. For more details on Axis Bank unsecured business loans for doctors, check website: axisbank.com/retail/loans/business-loan/business-loans-for-doctors
|Features||Loan amount: Up to ₹50 lakhs
Tenure: Flexible up to 60 months
Collateral: Not required i.e., unsecured business loans for doctors
|Eligibility||· Self-employed doctors/medical professionals running clinics, hospitals, diagnostic centres etc.
· Consulting doctors (with retainership with hospitals)
· Relevant qualifications e.g., MD/MBBS/MS/BDS etc.
· 2+ years in current profession
· ₹5+ lakh gross receipt
|Documents required||· KYC documents + Identity proof + Address proof
· PAN card – Business entity and Individual
· 2+ years ITR and P/L sheet and balance sheet
· 6 months bank statement
· Ownership proof – of office/residence
· For consulting doctors – Form 16A and Form 26AS
|Interest rate on doctors loan||14.25 % p.a.
Processing fees: Up to 2% + GST
Stamp duty and other applicable charges
Also read about: Axis Bank business loans
SBI Healthcare Business Loan
The State Bank of India also offers funding to healthcare professionals. The SBI business loan for doctors is a SME loan that the bank offers to qualified medical practitioners for setting up clinics and existing business expansion. For more information on SBI doctors loan, visit their website: sbi.co.in/web/business/sme/sme-loans/healthcare-business-loan
|Features||Loan amount: ₹10 lakhs – ₹20 crores (cash credit of up to ₹2 crore)
Cash credit: Annual renewal or on demand
Term loan: Up to 10 Years (up to 12 months moratorium)
|Target Group||Hospitals, nursing homes, diagnostic centres, ENT clinics, specialty clinic, IVF centres, X-ray clinics|
|Eligibility||· Individuals, proprietorship firms, partnership firms etc.
· 2+ years of operations
· For hospitals/Nursing Homes promoter to have minimum relevant qualification e.g., BDS, MBBS, BHMS
· Approvals from statutory authorities
· ITR for all units operating for 1+ years
|Collateral||· No collateral for loans up to ₹2 crore (if covered under CGTMSE scheme guidelines)
· ₹1 – ₹20 crores (min. 20% SARFAESI enabled tangible collateral security)
|Margin (%)||Term loan: 15%
Cash Credit: 25%
Upfront fee: 50% concession on card rates
Bajaj Finserv Business Loan for Doctors
Apart from leading banks, there are NBFCs and financial institutions that also offer professional loans. Bajaj Finance business loan for doctors is another option that you can explore when looking for convenient, no collateral doctors loans. For more details on Business Loan for doctors Bajaj Finserv, check their website: bajajfinserv.in/business-loan-for-doctors
|Features||· Up to 48 hours online loan processing time
· Flexible loan repayment tenure up to 96 months
· Collateral free business loan for doctors
· Pre-approved loan offers (exclusive) to suit borrower’s profile
· Part-payment available to lessen interest payment (learn how interest calculation on business loans work)
|Eligibility||· Super specialist doctors (MD, DM, MS) – min. experience not required
· Graduate doctors (MBBS) – min. experience not required
· Dentists – 3+ years experience
· Ayurvedic/Homeopathic doctors – 2+ years experience after qualification
|Documents||· KYC of authorised signatories
· Medical registration certificates
|Rate of interest||11% – 18% p.a.
Processing fees – Up to 2.95% of the loan amount
Documentation charges – Up to ₹2,360
Stamp duty and other statutory charges as applicable
Also read about: Medical equipment finance
Poonawalla Fincorp – Professional Loan for Doctors
The very reliable, Poonawalla Fincorp also offers small business loans for doctors. The collateral-free business loan for doctors come with zero-foreclosure charges, quick disbursal and flexible repayment tenure. For more details on Poonawalla Fincorp unsecured business loans for doctors, visit their website: poonawallafincorp.com/professional-loan-for-doctors.php
|Features||Loan amount: Up to ₹50 lakhs
Tenure: 12 – 60 months flexible repayment
Pre-payment: Zero charges on part pre-payment
|Eligibility||· Age: 24 to 65 years (during loan maturity)
· Work experience: At least 1+ years after completing education qualification
· Income: ₹3 lakhs min. annual professional receipt
|Documents||· KYC documents for Self employed – PAN, Aadhaar, residence and business address proof, doctor’s prescription letter
· KYC documents for Firm/Company – Business PAN and Aadhaar, business address proof, other registrations, proprietor/directors PAN and Aadhaar, residence address proof
· 6+ months bank financial statements + ITR
· Education certificates + Certificate of Practice
|Rate of interest||Competitive interest rates: 9.99% onwards
Processing fees: Up to 2%
Late payment penalty (3% on defaulted EMI amount)
Stamp duty and other statutory charges
How to apply for a Doctor’s Loan
Today, all lending institutions offer the option to avail business loans online or offline. Online loans can be processed faster, requires less paperwork, the document verification process takes less time, and is in general convenient and hassle-free.
To apply for doctors business loan online:
- Visit the respective bank/NBFC website and click on the ‘Apply Now’ or similar button
- Fill in the application form, upload documents and photo (or share your contact information and the bank/NBFC representatives will get back to you)
- Ensure your application has been submitted and wait for further communication (the lender takes 1-3 days to review your application, verify documents, and approve/reject loan)
- Await response from the lender (either approval or rejection)
- Sign the business loan agreement and/or any other process to complete the formalities
- Check your account for loan disbursal amount (usually 5-7 working days)
In general, funds are required by all professionals and businesses to expand. Private and public sector banks offer different loan types depending on requirements (e.g., Bank of Baroda business loans, IDFC Bank business loan, business loans in Karnataka etc.).
Other than business loans, there are different other types of business finance that one can avail for their business. The important thing to understand is that while there are several funding options available, it’s imperative to understand its main features, interest rates and EMI calculation, and other terms and conditions, and select on a loan type that’s reliable and relevant.