Owing to its medical tourism industry, India expects a growth of 22% to 25% with a revenue generation of US$9 Billion by 2020. As per reports, the number of doctors in the country is also increasing year-on-year.
To finance the growth of the healthcare industry, several financial companies offer tailor-made professional advances such as doctors loans. You get to enjoy a substantial loan amount with a prolonged tenor and other lucrative benefits such as collateral-free loans, faster disbursal, instant approval, etc.
Besides, the interest rates are also competitive, and you can enjoy inexpensive EMIs and lower the burden on your pocket. Discussed below are some of the facts about doctors loan interest rate that you should know about.
Things you need to know about interest rates
- Types of interest rate
While applying for a professional loan for doctors, you get to choose between two types of interest rates such as floating interest rate and fixed interest rate.
Floating interest rate is set by your lender based on the current MCLR, which depends on the on-going repo rate published by RBI. Availing advances at a floating interest rate will ensure that your interest rate lowers as and when there is a drop in the MCLR.
On the other hand, fixed interest rates remain unaltered throughout the loan tenor irrespective of the change in the MCLR.
While floating interest rates are suitable for applicants with the required risk appetite and knowledge on the volatile market, it is 1.5% to 2% lower than the fixed interest rate. Whereas fixed interest rates remain constant throughout the tenor for which your EMIs remain the same but as the rate is higher than floating interest rate which can increase the total cost of the loan.
- Credit score
While you avail advances your lender will check your credit score that depends on your repayment history. You are required to hold a CIBIL score of 750 or above to ease your way to availing advances. Also, maintaining a credit score of 750 or above will help you avail advances at affordable doctors loan interest rate without straining your budget.
Some ways for doctors to increase their CIBIL score is by clearing all outstanding dues, limiting the number of credit cards, etc.
- Loan tenor
Credits with a shorter tenor attract lower doctors loan interest rate; however, your EMIs and the total cost of your loan may be higher than compared to advances with a longer tenor. Also, the EMIs that you are required to pay for advances with a longer tenor the EMIs are affordable which reduces the burden on your pocket.
These are the few points to know regarding interest rates on loan for doctors. To avail these advances, you are required to meet its eligibility criteria. You can be eligible for a doctor loan by holding the necessary work experience as per your area of expertise.
A professional loan for doctors offers several types of advances such as a loan against property for doctors, personal loan for doctors, business loan for doctors and home loan for doctors.
In case you avail home loan for doctors, you get to enjoy balance transfer facilities with which you can move your outstanding balance from your existing lender to a new one, offering advances at a lower interest rate.
NBFCs like Bajaj Finserv provide such facilities and they also provide a high-value Top-Up Loan when you transfer your loan balance to their account.
They also have pre-approved offers to reduce the hassle of the application process and to save your time. These pre-approved offers are available on a list of financial products like home loans, personal loans, and business loans, etc.
Furthermore, while you avail such advances, do make sure to know the application process. To apply, you will have to visit the official website of your lender and fill an online application form. After your application is approved, submit the required documents to have the loan amount credited to your account within two working days.