There are various loans for professionals, one of which is a doctor loan. Using this form of credit, individuals can:
- Renovate their workplace
- Upgrade to new technology
- Hire and train professional staff
- Maintain working capital reserves
So, if you are a medical professional planning to start an independent clinic, you can apply for a doctor loan online. While getting a doctor loan is more convenient with the online application, knowing the process can help you get loan approval hassle free.
However, you need to meet the eligibility terms set by the lender to ensure speedy loan disbursement. Read on to know some tips to improve your chances of getting a better offer when you apply for a doctor loan online.
Compare Lender Eligibility and Interest Rates
Lenders have varied eligibility requirements, as these provisions are usually for different types of professionals. Some lenders have personal loans better suited for established working professionals.
In contrast, others may offer better deals for professionals looking to start working independently. Therefore they differ in their eligibility requirements, and subsequently, their interest rates will also vary. For example, some lenders offer a debt consolidation loan for professionals.
Others may have specific lending options for applicants with lower credit scores. Based on this you may have to pay a higher interest on your doctor loan or any other loan for professionals. So it is important to shop around before making the final decision.
Focus on Improving Your Credit Score
Be it a doctor or any other professional loan, your CIBIL score is the first thing the lenders will check before proceeding with the loan application. This is why it is important to maintain a healthy credit score at all times to get instant loan approval.
One way to ensure that you have the required credit score is to check your credit report periodically. If your credit score is 650 or less, you may have difficulty getting approval at a lower interest rate.
Thankfully, there are many ways to improve your credit score, and some can even have an instant effect. For instance, an error in your CIBIL report can be the cause for your low score. This can be either a misreported transaction or a credit payment that wasn’t reported altogether. Getting such issues rectified helps improve your score, and prevent further dips.
Other ways to improve your score will require consistent effort on your part. These include paying your credit dues on time, and in full, and utilising credit sparingly.
Apply with a Co-Applicant or a Cosigner
If your credit profile is not strong enough, lenders also give you the option to apply with a co-applicant. When you apply for a doctor loan online with a co-applicant, you can get a lower interest rate based on the combined credit profiles.
Applying with a co-applicant also builds trust, giving you a better chance of loan approval. In fact, lenders may even grant quicker approval if your co-applicant has a very good profile.
Reduce your Debt-To-Income Ratio
Debt-to-income ratio, or DTI, is an important parameter that lenders rely on to evaluate your capacity to repay the loan on time. If you have a higher number of existing loans, you will have a higher debt to Income ratio.
Major Banks and NBFCs prefer a DTI of 35% or less. A better ratio will assure lenders that you can repay your loan on time, improving your chances of successfully getting approval. So, if you have existing debts and these take up a lot of your income, wait to clear them off before you apply.
Check the Lenders’ Eligibility Criteria
When you apply for a doctor loan online or any other type of business loan, you must meet certain eligibility criteria and submit relevant documents. These documents provide proof of your eligibility for your loan application. Therefore, checking your eligibility and having all your documents prepared before you start the application process is important.
Lenders will approve your loan application after verifying it only after you submit all the relevant documents. Any incomplete or missing document will further delay loan approval and disbursal.
So to save time, you should always read through the lender’s website to get all the relevant information. This includes eligibility terms, documents required, fees and charges to apply for a doctor loan online.
Eligibility and Documents Required to Apply for a Doctor Loan Online
While lenders may have different eligibility requirements, here are some general criteria to note.
- You must be an Indian citizen
- You must be between the age of 26 and 65 years
- You must have an MBBS degree, PG Diploma, or any other relevant educational qualification to certify your medical practitioner status
- You must have a medical registration certificate from the medical council of India
- You must have the required CIBIL score of 720 or above
If you fit within the eligibility criteria, here are the documents required to apply for a doctor loan online.
- KYC Documents: Aadhaar card, PAN card, voter ID card, driver’s license, etc
- Address Proof: Aadhaar card, voter ID card, electricity bill, telephone bill, rent agreement, etc
- Income Proof: Income Tax Return or bank statement
- Educational qualification certificate
In conclusion, if you satisfy the following eligibility criteria and have the required documents, you can improve your chances of approval on your loan. When you apply for a doctor loan online, you can save time and get funds for any urgent financial need for your workplace.