A business loan for doctors is designed to suit the medical professional life. It is a credit option that affordably funds numerous needs of a doctor. A doctor loan is for the professional needs of a doctor, i.e. he can only use it to meet the requirements of his clinic.
A doctor can avail collateral or collateral-free business loans. He can hypothecate his personal assets in case of availing collateral or secured business loans.
And in case he doesn’t wish to hypothecate any of his assets, he can avail an unsecured business loan. While most banks offer secured business loans, an unsecured business loan is generally offered by NBFCs and online loan lenders.
Now let’s discuss the reasons why a business loan for a doctor can be beneficial.
Why Should You Take Doctor Business Loan?
Buy or Lease Clinic
The clinic is the place where you treat patients. That is, where actual business activities are happening. Therefore, office space is very important. You can set up a new clinic in a new area.
Or you can relocate to a bigger and better shop where you can treat more patients or provide more medical services.
Hire Experienced Staff
Knowledgeable and experienced staff is very important for any business to run efficiently. And when it comes to a medical business, it is imperative to hire knowledgeable, experienced, and skilled staff.
When your clinic is expanding, you need to hire more staff which requires working capital to pay their salaries. As a rule, when you hire more people, you should have enough funds to pay their salaries for at least one year.
You should not hire them for just a few months and then ask them to leave stating you don’t have enough funds to pay their salaries. So, a doctor’s business loan can be useful here.
Buy latest Medical Equipment
Machinery and equipment are essential to run a medical clinic. You need some equipment to inspect patients and treat them properly.
With a business loan for the doctors, you can buy the latest equipment and machinery or upgrade it to the latest version. Besides, you can also buy new equipment when expanding your business.
Maintain Clinic’s Working Capital
Working capital is required to maintain the daily operations of a business. You may need to have enough liquid funds to operate daily clinic functions. In case your clinic lacks the same, you can avail a business loan.
Besides, you may also need to stock the medicines at your clinic and pay the suppliers on time. However, you may generate revenues later only when the patients visit you. So, there would be a need for working capital that can be met through a working capital loan.
Now, let us read the step-by-step guide to avail a business loan for a doctor.
Choose the Right Lender
Selecting the right lender is imperative as it ascertains that you choose the right business loan (which is affordable) and the lender (who offers excellent services).
So, before applying for a loan, review various lenders offering services in the market, know their interest rates, and ensure you choose the best lender. This will ensure that the monthly outflow of the cash towards the loans stays minimum.
You can avail a business loan from ZipLoan to manage funds for your clinic. We offer a host of benefits, such as quick approval, online loan application, nominal interest rates, flexible repayment tenure, easy-to-meet eligibility criteria, and minimal documents.
Check if you qualify for the Doctor Loan
After choosing the lender, it is vital to check whether you meet the business loan eligibility criteria or not. Usually, the loan lenders require you to run your clinic (business) for two years and based on your educational qualification and work experience, approve the application.
Meeting the eligibility criteria of the lender increases the chances of getting the application approved faster. This saves a lot of time. If you don’t meet the complete criteria, it is most likely that your application will be rejected during the verification process later. Also, not meeting the criteria entirely may result in you paying higher interest costs.
To prove eligibility, you will be required to submit various documents, such as PAN Card, ITR, bank statement, address proof, etc. In case you are availing a secured loan, you will also have to provide the asset documents as well.
Select the Application Option – Online or Offline
Depending on the lender, you will be offered a choice between online and offline loan application. You can choose the one that you find convenient. Applying for a business loan online will let you avoid hassle and taking out time from your hectic day to apply for a loan.
You can fill the form easily online, submit the soft copies of the documents, wait for the verification, and finally get the amount disbursed after signing the contract. Besides, you can also check the application process online.
Submit Documents and Receive Funds
Whichever way you fill the loan application, you need to fill the loan application with the required information, such as name, date of birth, business information, the amount required, tenure, and so on.
It is advised that you keep all the details handy to save time, mainly when you apply for the loan online. Once the information is verified, the funds will be disbursed directly into your bank account.
By keeping the steps mentioned above in mind, you can apply for a business loan for doctors in a hassle-free manner. So, whether you want to renovate your clinic or open a new one, a business loan is the right step.