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NBFC vs bank: Which one Should you Choose When Opting for a Loan for Doctors?

Non-banking financial companies (NBFCs) and banks are the two major players in the loan markets with peer-to-peer lending, crowdfunding, etc. being the other ones.

Banks have always dominated this sector since time immemorial until the rise of NBFCs. Since the last decade or so, NBFCs have gradually become a fierce competitor for banks.

Research by CARE ratings found that the year-over-year (YOY) credit growth of NBFCs has been higher than banks in the last 5 years or so. Back in 2018, the YOY credit growth of banks was only 10% while, for NBFCs, it was 19.6%.

Lower demand from the manufacturing sector, increasing non-performing assets (NPAs), strict adherence to capital adequacy norms, etc. are some factors that have restricted the growth of banks.

On the other hand, increasing personalised products from NBFCs have raised their popularity in the lending market. For example, loan for doctors is one such customised product NBFCs offer to medical professionals. These secured and unsecured loans are ideal for both personal and business needs of medical professionals.

Some of the reasons why you should choose NBFCs when looking for a doctor loan includes:

1. Various options to choose from

NBFCs offer the following types of loans to doctors:

• Personal loan – Loans to address expenses like exotic vacation, wedding, vehicle purchase, etc.

• Business loans – Loans that help you increase your practice’s cash flow or expand it.

• Home loans – Loans that provide funds to purchase/construct a house.

• Loans against property – Secured alternative to personal and business loans.

You must know everything about doctor loans before you opt for any one of the above options.

2. Quick loan approval within a day

Another reason why NBFCs are a better choice when compared to banks is because of the former’s loan approval time. These financial companies can approve your loan application within 24 hours.

3. Variable and convenient repayment tenors

Secured and unsecured loans are a mix of long-term and short-term credits respectively. While secured loans have a maximum repayment period of 18 months; that of an unsecured loan for doctors is 60 months.

4. Loans amount as per your requirements

Unsecured loans are available for up to Rs. 30 Lakh and are, thus, exceptional in meeting short-term financial needs as mentioned above. These loans for doctors also help you offer better healthcare.

On the other hand, secured loans are available for up to Rs. 2 Crore. You can utilise these amounts to cater to long-term expenses like purchasing a house, opening a healthcare clinic, etc.

5. Minimal documentation to remove the hassle

The documentation requirement doffers with loans but is minimal. In all the cases, you have to provide your medical registration certificate and KYC documents (Passport, Driving License, PAN, Passport, Aadhaar, etc.).

Other documents that NBFCs might require:

• Bank account statements.

• Income tax returns for the previous 2 years.

• Salary slips (if you are salaried).

• Balance Sheet and Profit & Loss Account statement of the last 2 years (if you are self-employed).

Documents of the property to be mortgaged are mandatory if you want to avail a secured loan for doctors.

6. Eligible criteria that are easy to fulfil

You only need a post-qualification experience to apply for doctor loans. The experience differs from doctors and loans.

Secured loans –

• Dentists – 5 years.

• Graduate doctors – 3 years.

• Super-specialists doctors – 3 years.

• Ayurveda and homoeopathic doctors – 6 years; must also own a house/clinic.

• Homoeopathic doctors – 15 years; must also own a house/clinic.

Unsecured loans –  

• Dentists – 5 years.

• Graduate doctors – 2 years.

• Super-specialists doctors – None required.

• Ayurveda and homoeopathic doctors – Same as above.

• Homoeopathic doctors – Same as above.

7. Pre-approved offers to lower obstacles to avail a loan

NBFCs like Bajaj Finserv provide pre-approved offers that help you save time when availing loans by making the process straightforward. Pre-approved offers come with an array of financial products and services like home loans, business loans, personal loans, etc. You can have a look at your pre-approved offer by providing only your name and phone number.

So, apply for a loan for doctors with an NBFC. Secured and unsecured loans have a different rate of interest structure; hence, make sure to check them before you opt for one.

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Written by richa

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