What is a Doctor Loan? What are some of the Best Options in India?

Most people know about personal loans, home loans, etc. However, not many know about physician or doctor loans mainly because these started to gain traction only in the past couple of years.

What is a Doctor Loan?

Simply put, a doctor loan is a business loan offered exclusively to the doctors. Most of these loans are used for setting up clinics, purchase of expensive medical equipment, etc.

The following are some of the most popular doctor loans available in India today:

SBI Doctor Plus Scheme

The SBI Doctor Plus Scheme offers personal loans for physicians and other medical practitioners who meet the minimum qualification of GAMS/ BDS/ BAMS/ MBBS/ BHMS.

The loan can be used for the following:

• Financing vehicles like ambulances and goods carriers.
• Establishment of a pathological lab, clinic, drug store, nursing home, etc.
• Purchasing medical equipment such as dental implants, replacements for spine, hip, etc.

An eligible medical practitioner can apply for a loan up to Rs. 5 crores. However, they must have a working capital of at least 10% of the loan value.

Bank of Baroda Loan for Doctors

Bank of Baroda offers personal loans to doctors and registered medical practitioners which can be used for setting up clinics, nursing homes, hospital expansions, etc.  

The bank offers loans starting from Rs. 50,000 to as high as Rs. 50 lakhs depending on the applicant’s credit score. However, the loan amount is capped at Rs. 15 lakhs for medical practitioners based in rural or semi-urban areas. The interest rate levied is base rate + 2.50%.

PNB Sanjeevani Loan

Qualified doctors in any medical field including Homeopathic, Allopathic, Ayurvedic, and Unani who meet the minimum educational qualifications can apply for the PNB Sanjeevani loan.

There is no particular maximum loan amount in PNB Sanjeevani. However, the minimum amount is Rs. 1 lakh. The interest rate is 11.85% (at the time of writing) and the loan tenure can be as long as 7 years.
Image Source