A personal loan is a type of funding that you can avail very quickly and easily from banks as well as from NBFCs. The lender decides your loan eligibility based on your income, credit report and CIBIL score, the estimated future revenues, and your debts. If you are working in a high paying profession that has a reasonable prospect of growth, your eligibility for personal loan increases, and your chances of getting it without hassle increase.
Personal loan for a Doctor
It is an accepted fact that doctors will more than likely earn more and will have a higher repayment capacity. Hence, it is easier for them to meet the eligibility criteria for the loan.
Tips for Getting a Personal Loan for Doctor
The noble profession is highly reputed, and a doctor is considered an elite member of society. But even he/she has to be careful while availing a personal loan for doctors. Here are some tips which he/she must keep in mind before applying for a personal loan.
- Keep track of the credit score
Apart from the current and expected future income, it is necessary to have a high credit score to get the loan at a lower interest rate and better terms. The score indicates your credit history and regularity in the repayment of your debts. A good credit score increases the chances of instant approval with a lower personal loan interest rate. If you have a lower credit score than the one required by the lender, then, if possible, spend time on improving the credit score before filing the loan application.
- Select the lender
Every lender has its terms and conditions for availing a personal loan for doctors. The lenders differ on loan interest rate and tenure. It is always good to compare all the lenders and their offers. Use the EMI calculator to know the equated monthly installment for different loan amounts and tenures. It will help you make an informed decision.
- Evaluate the loan terms
After checking the credit score and selecting a lender, it is now time to review the terms and conditions set by the lender. It is necessary to meet all the eligibility criteria and the documents required as per the lender. The EMI should be affordable and pocket friendly. Lenders will have a page dedicated to the criteria they consider, and the documents required. If in doubt, get in touch with the customer care representative over call or chat. The customer care executives can answer all queries and even help in the processing of the application.
- Evaluate your Debt-to-Income Ratio
It is a ratio of earnings and spending; or the ratio of income and payouts in the form of debt repayment. It is an important metric that every lender will consider before approving the loan application. This ratio indicates your financial well-being and loan repayment status.
- Decide your loan amount
As has been shared above, it is very important to borrow money after evaluating needs and purposes. Do you need the loan to buy equipment? If so, what is the cost of the purchase? What is the annual maintenance? What will the insurance company charge? Keeping all these questions in mind will help make the decision faster and better suited to exact requirements.
The above considerations are a necessity while searching for a loan. Understandably, doctors do not have the time to invest in the search. If time is short, ask a family or friend for advice or reach out to a financial consultant. Whatever the choice, always take the loan from a lender governed by Government regulatory bodies like the RBI and NHB.
Although doctors can get a personal loan very quickly, they must keep in view these tips before proceeding with the loan application. Availing an instant personal loan is easy and straightforward, and it can be used for a variety of reasons from expanding the hospital, setting up a clinic, making payments to the support, or for general maintenance and upkeep. It can also be used to pay for a holiday, travel, or home refurbishing.