Last week when I visited my doctor for my regular check up, he looked little overwhelmed. I checked my reports once again to be sure that whether I am suffering from any scary disease or not because doctors generally smile at their patients when there is a lot to cry for. Fortunately there was not something that I thought of. The smile was for something else. He was happy that finally he is going to have his own clinic near his house.
We had a quality conversation that day. He was telling me how he got the personal loan for his clinic and wishes to take more for the expansion of the clinic in future.
Personal Loan for Doctors – What’s the difference
Doctors are the saviors and of course special. So the loan provided to them must be special as well. There are few differences between personal loan for general people and personal loan for doctors. By difference I mean a set of benefits a doctor gets while availing personal loan unlike any other individual.
The benefits include:
- Higher amount of loan amount compare to others.
- No additional costs like foreclosure and repayment fees to be given.
- Fixed and Floating Interest Rates– Both options can be availed.
- There is another option of part payment in which doctors can repay the loan in parts.
- The process of loan sanction is much lesser than the ordinary personal loans.
- Finally the repayment tenure is more relaxing for the doctors than any other creditor.
Which are the banks that offer personal loan for doctors?
There are a bunch of Indian banks that have special loan benefits for the doctors. Generally these special loan facilities are given to the experienced or fresher doctors for several purposes.
The banks that provide different personal loans for the doctors are:
State Bank of India: The name of the loan is SBI Doctor Plus Loan
Bank of India: The name of the loan is Star Doctor Plus Loan
Corporation Bank: The name of the loan is Doctor’s Plus Scheme
Bank of Baroda: The name of the loan is Baroda Loan to Doctors
Canara Bank: The name of the loan is Doctor’s Choice Loan.
Personal Loan for Doctors – Purpose to be served
Doctors can avail personal loans for anything related to their profession. Though it is called a personal loan but the amount can’t be used in other expenses like vehicle or home. For those your bank has other plans. The main purpose of these loans is to finance the clinic set up, purchasing of new medical equipments or expansion of the clinics.
Also day to day expenses, upgrade of the sections like OT, ICU, wards, beds and such can also be financed by this loan. Ambulances and other medical vehicles if needed can be purchased as well.
Personal Loan Charges for Doctors
Though it is the special type of personal loan that has many benefits however there are some charges that doctors have to bear while availing the loan. As mentioned before that the loan takes a lot of benefits along with it but the interest rates are almost the same like other personal loans. The other charges are:
Late repayment charges: This is quite common in case of all the personal or other loans. The charge for late payment is generally runs from 1.5% to 2% for everyone. The rate depends on the flexibility of the bank rules. It is recommended for all the applicants that though the charge looks quite low but make sure not to delay the payment. This directly affects your credit score and history.
Loan processing fee: Loan processing fee is a kind of service charge that is mandatory for all the applicants be it a doctor or any other professional. It varies from bank to bank. This fee is negotiable. In case of doctor’s personal loan, as we have seen that the amount is high, the processing fee can be negotiable in this case.
Repayment Penalty: This is a good thing as well as bad thing. The repayment penalty is that kind of fee that a borrower has to pay if he / she repay the loan amount beforetime. This sounds bit confusing isn’t it? But this is true, if you are availing a huge loan and you repay it back before time or early then the bank asks for repayment penalty which is taken in the form of interest rates. So basically it is not visible but you are bearing the cost.
These are some of the charges that are common in Doctor’s special personal loan and ordinary loans. There are other hidden costs as well but these costs vary from one organisation to other.