Personal Loan For Doctors: How To Make The Right Choice
A personal loan can prove to be a good solution when someone is facing a financial crunch at a given point of time. However, when it comes to a doctor applying for such a loan, certain additional aspects do have to be kept in mind.
● While most jump at the opportunity of getting an easy credit card loan, for a doctor- who might need the funds to upgrade his clinic or his equipments- it would be a more prudent and steady to approach a bank or NBFC. The reason is that proper documentation is required for the purpose, which makes the process more transparent and also often more secure, as proper KYC documents have to be handed in.
● In case of personal loans for doctors, one might approach a lender even if there has been no pre- existing working relationship with him. However, in other kinds of loans, as in credit card loans, one can only apply for the loan if they have a credit card in the first place. So a doctor who might not have a credit card would not be able to avail this kind of a loan, even if he finds this to be an attractive option.
● On the other hand, for credit card loan, the loan amount is not much. If the credit card limit on a card is Rs 1 lakh out which 25, 000 has already been spent, then one can avail a loan only on the remaining 75,000. For a doctor who wants to complete his residency or an additional research, or even one who wants to upgrade his clinic and its equipment, the requirement can be much more. Personal loan for doctors usually have a range of Rs 50,000 to Rs 15 lakhs, and sometimes even more, which is good enough to cover most of their requirements.
● The interest rate for personal loans is mostly in the range of 11 percent and 24% while in the case of credit cards, it is mostly between 12% to 18%. One should rule in other factors like total tenure, income rates, interest paid on insurance and such to determine which loan they should finally avail. The tenure for personal loans, for example, depends on the banks and creditors but in case of credit cards, some are as low as three months.
● There are differences in Processing Charges of the loans as well. This can range
anywhere between 0 to 2.50 percent of the total loan amount. Depending on the amount of the loan, this fee might be big enough to make a significant difference. There are also times when one might be tempted by some private banks with schemes like no processing fee, but there might be hidden charges which one might be wary of.
Approach a financial adviser, if as a doctor, you are in need of a hefty sum as a loan. Bajaj Finserv has some great schemes for personal loans for doctors.