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Tata Capital > Blog > Loan for Business > What are Doctor Loans, and Are They the Same as Professional Loans?

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What are Doctor Loans, and Are They the Same as Professional Loans?

What are Doctor Loans, and Are They the Same as Professional Loans?

Are you a doctor starting a private practice of your own? A professional loan for doctors can help simplify the financial aspect of your new venture.

Today, several lenders and NBFCs offer special loans to doctors tailored to their specific needs. What’s more, you can apply for your loan online and receive the loan amount in your account in just a few days. Owing to your busy schedule and myriad responsibilities, instant doctor loans are a godsend.

Read this article to learn more about doctor loans, understand the eligibility criteria, and how you can apply online.

Difference Between Doctor Loans and Professional Loans

Business loans for doctors are often considered synonymous with Professional loans for doctors. However, these are distinct. 

Here’s the difference between doctor and professional loans.

Differentiation CriteriaDoctor LoanProfessional Loan
Eligible BorrowersThese can only be applied for by medical professionals such as dentists, doctors, surgeons, etc.These can be applied for by any professional, like a lawyer, CA, doctor or architect
FlexibilityThese can be tailored with special repayment flexibility and advantages for doctorsThese are general roles that can come with personalised terms depending on the profession
Loan AmountsThese are usually higher to help meet the cost of medical equipment, clinic expansions, etc.These have moderate loan amount limits depending on business profile, income and profession
Documentation This requires proof of medical qualifications and practice license in addition to general documents (Aadhaar card, PAN card, etc)These require proof of professional qualification, registration, and financials in addition to general documents (Aadhaar card, PAN card, etc)
Interest RatesThese have a lower interest rate since doctors have a high-income potentialThe interest rates can vary with the borrower, but are usually higher than loans for doctors

Also, read – Loan for Professionals

Benefits of Professional Loans for Doctors

While you can use a business loan for medical equipment purchase and hiring staff, loans to doctors are bespoke loan products. There are several benefits of availing of special loans extended to doctors. Let us have a look at some of them.

They Are Multi-Purpose

You can apply for a doctor’s loan for the clinic and use it for several purposes, such as:

#● Medicalequipment finance: Using advanced medical technology and state-of-the-art medical tools and machines is the best way to make your practice stand out and win the trust of patients. A doctor’s loan comes in handy to fund this purchase.

#● Renovating or expanding your clinic: You can use the same funds from your doctor loan to buy medical equipment and renovate your clinic at the same time. This saves you the hassle of applying for a separate loan for renovation.

#● Hiring the staff for the clinic: To run your practice effectively and profitably, you must hire qualified and trained staff. This includes nurses, technicians, and receptionists. You can use a professional loan for doctors to make new hires.

#● Advertising and marketing your clinic: If you are just starting out, you will need to promote your practice with newspaper ads, flyers, and digital marketing. A doctor’s loan can be used for marketing your clinic, hiring marketing professionals, and paying ad agencies as well.

Doctor Loans Let You Borrow Higher Loan Amounts

The cost of advanced medical equipment can go up to lakhs and crores of rupees. To cover these expenses without compromising on your savings, you need to borrow large loan amounts. Lenders who offer professional loans for doctors allow you to borrow large sums of money depending on your needs.

Often, the loan amount you can get with doctor loans exceeds the amount you get with personal loans and equipment loans.

Flexible Repayment Tenure

Most lenders offer flexible tenure options when they extend loans to doctors. Doctors have a high level of financial stability, which makes lenders likely to offer favourable terms such as longer tenure options. As your practice flourishes, you can adjust the tenure based on your convenience.

Quick Application and Disbursal

You can apply for a doctor’s loan for your clinic online and get the amount you need within a few days. Using your lender’s internet portal or mobile app, you can complete the application process from the comfort of your home or office. This means that you don’t need to abandon your clinic or take time off of your busy schedule to approach lenders.

Minimal Documentation

Doctors do not have time for complex paperwork, which is why lenders strive to make the application process as convenient as possible. Applying for a doctor’s loan involves minimal paperwork, and all you need to submit are KYC documents, address proof, income proof, and proof of your qualification as a doctor.

They Are Collateral-Free

One of the greatest advantages of applying for doctors’ loans is that they are unsecured, i.e., they do not require you to offer collateral even for high loan amounts.

This means that you can go ahead and focus on the goals of your medical business without having to risk your business assets or personal assets.

Also, read – Business Loan for Medical Store

Eligibility Criteria for Doctor Loans and Professional Loans

While the eligibility criteria for a professional loan for doctors vary among lenders, here are some of the basic requirements:

#● The applicant must be a resident of India

#● The applicant must be a practising doctor with an MBBS, BDS, or BBS degree.

#● The applicant must be between 26 to 65 years of age

#● The applicant’s CIBIL score must be at least 750

Also, read – What is A No-Doc Business Loan and How Does It Work?

Documents Required for Doctor and Professional Loans

While the exact documentation varies from lender to lender and the applicant’s needs, here are some of the basic documents you will require. So, before you apply, keep these documents handy.

#●       Proof of Identity: Aadhaar card, PAN card, Passport, Driver’s licence, or Voter’s ID

#●       Your address proof: Aadhaar card, Passport, Driver’s licence, or Voter ID

#●       Address proof of your clinic: Electricity bills or phone bills for your clinic

#●       Income Proof: Income tax returns or bank account statements for the past six months

#●       Qualification proof: Your medical degree and licence to practise

Make sure that your documents are up to date and have the correct information.

MSME Loan for Doctors: Who Should Apply?

An MSME loan for doctors is ideal for medical professionals looking to set up or expand their practice, invest in new equipment, or manage operational expenses. While similar to a professional loan for doctors, MSME loans specifically cater to business-oriented needs, making it crucial to understand the difference between doctor and professional loans. 

Doctors who are self-employed or running a clinic, hospital, or diagnostic centre can benefit from a business loan for doctors under the MSME category. Generally, eligible applicants must be Indian residents, practising medical professionals with recognised degrees such as MBBS, BDS, or BAMS, aged between 26 and 65, and maintain a good credit history, usually a CIBIL score of 750 or above. By applying for an MSME loan for doctors, medical professionals can secure structured financing tailored to both growth and operational requirements.

Business Loan for Doctors: Use Cases and Features

A business loan for doctors or a professional loan for doctors can provide the necessary funds while offering flexible terms tailored to medical professionals. Understanding the difference between doctor and professional loans helps in selecting the right option, as some loans are specifically structured for business expansion rather than personal professional needs. 

Common use cases include:

  • Expanding Medical Practice: Set up new clinics, branches, or specialised departments.
  • Purchasing or Upgrading Equipment: Acquire advanced diagnostic or treatment tools.
  • Renovation & Infrastructure: Upgrade hospitals or clinic facilities for better patient experience.
  • Managing Working Capital: Cover daily operational costs efficiently.

Key Features:

  • Loan Amount: Typically up to INR 45 lakh or more.
  • Collateral-Free Options: Most MSME loans for doctors are unsecured.
  • Flexible Tenure: Ranges from 12 to 84 months.
  • Quick Processing: Lenders provide fast approvals to meet urgent requirements.

Also, read – What is a Business Loan?

How to Choose: Doctor Loans, Professional Loans, and Business Loans

When deciding between a professional loan for doctors, a business loan for doctors, or an MSME loan for doctors, it’s important to understand your specific needs and the purpose of the funds.

 Professional loans are typically designed for individual practitioners to cover personal or professional expenses, while doctor loans may include options for setting up clinics, buying medical equipment, or expanding services. 

MSME loans for doctors cater specifically to those running registered healthcare businesses and often come with government-backed benefits. Knowing the difference between doctor and professional loans helps ensure you choose the right type of financing. 

Evaluate factors like loan amount, interest rates, repayment tenure, and eligibility criteria. By matching your funding requirements with the right loan type, you can ensure smoother financial planning and efficient management of your medical practice.

Key Differences Between Doctor Loans and Professional Loans

While often used interchangeably, doctor loans and professional loans have distinct features. Doctor loans are specifically designed for medical professionals, offering higher loan amounts, lower interest rates, and tailored repayment options for clinic setup or equipment. 

Professional loans, on the other hand, cater to a broader range of professionals like lawyers, CAs, or architects. These come with moderate loan limits and standard interest rates. Documentation and eligibility criteria also differ, reflecting the borrower’s profession and income potential.

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FAQs

What is the difference between a professional loan for doctors and a business loan for doctors?

A professional loan for doctors can include various professions and has moderate limits. On the other hand, a business loan for doctors is tailored specifically for medical professionals, offering higher amounts and flexible repayment options.

Who is eligible for an MSME loan for doctors in India?

 

To be eligible for an MSME loan for doctors in India, applicants must be Indian residents, practicing medical professionals with a recognised degree. Further, they must be aged between 26 and 65, and have a good credit score, typically 750 or above.

Are doctor loans collateral-free?

 

Yes, doctor loans are offered as collateral-free. Further, they also come at lower interest rates and with flexible repayment terms.

Can a doctor avail both a professional loan and a business loan for clinic setup?

 

Yes, a doctor can apply for both a professional loan and a business loan for clinic setup, provided they meet the eligibility criteria and documentation requirements for each loan type.

What documents are required for a professional loan for doctors?

 

For a professional loan for doctors, you typically need identity proof (Aadhaar, PAN, Passport), address proof (personal and clinic), income proof (IT returns or bank statements), and a medical qualification with a practice license.

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