Personal Loans for Physicians

5 Things to Know About Personal Loans for Physicians

July 06, 2022 • 201 views
Author: PoonawallaFincorp Category: Personal Loan

Doctors have consistently faced problems in getting home loans due to their pre-existing student loans. Physicians fresh into the profession and under fellowships and internships may also lack the income requirements for a home loan. Banks and financial institutions have designed loans, particularly for doctors, to cater to this need. 

A Doctor's Mortgage Loan is a home loan designed for practising physicians and other qualified medical professionals. The best Physician Mortgage Loans primarily depend on physicians' estimated future earnings; these mortgages have fewer restrictions than traditional mortgages. However, for young physicians, even these loans may become difficult. The paperwork and vetting for mortgage loans can be a time-consuming process. In such cases, doctors can benefit from a Personal Loan for Physicians. 

What are Personal Loans for Physicians?

Personal Loans for Physicians are similar to Personal Loans for regular people except for their eligibility conditions. Instead of giving weightage to the current income when judging the repayment capacity of the applicant, companies look at their qualifications. This enables doctors and physicians to avail a loan of a high amount. Since a Personal Loan does not have any end-usage restrictions, it can easily be used to buy or construct a home or for home improvement purposes.

Here are 5 things you must know about Physicians:

1.    No Usage Limitations: Whether you want to buy a home, buy a piece of land, renovate your home or office or lease a commercial space, a Personal Loan allows you to do all of this. Its usage has no limitations as long as the funds are not used for illegal activities. The purpose of the loan does not define the eligibility either. The lender does not base its approval on the loan's usage purpose. If you want to use the funds partly for home construction and keep the rest for an emergency or a vacation, it is your choice.

2.    No Collateral requirements: When taking a mortgage loan, the home or piece of property you buy gets pledged as collateral against the loan. This is not necessary for Personal Loans. The fact that a Personal Loan is an unsecured loan is one of its most important advantages. Why does that matter? No security or guarantee is required in exchange for the loan. Therefore, you can access a Personal Loan without mortgaging your home or any other fixed assets, such as deposits, savings bonds, shares, etc. The only thing you truly need is a good CIBIL score because that is what a financial institution would check for when reviewing your application. Therefore, check your credit score before applying.

3.    Lower Eligibility Conditions: The debt-to-income (DTI) ratio is the measure of your income compared to your expenditure on pre-existing debt. To borrow fresh loans, especially mortgage loans, applicants must have a DTI of less than 30%. Applicants with a higher DTI ratio are not given other loans because they are viewed as a risk by the lender. When a doctor applies for a loan, this factor is not taken into account. The reason for this is that the lender is certain that doctors would make more in the years to come compared to their early careers, ensuring the payback of the debt.

4.    Instant Disbursal: Most lending companies, including Poonawalla Fincorp, offer instant Personal Loans with a completely digital process. The application procedure for a Personal Loan is generally quick, from verification to fund disbursal, in part because there is little paperwork required. You may find yourself requiring urgent funds when building your home or renovating a corner. Choose a Personal Loan to step in and help right away, rather than waiting for approval on a mortgage loan. Additionally, your medical eligibility will be a solid argument for loan approval, and that too at low Personal Loan interest rates

5.    Low Documentation Requirements: Lenders require minimal documentation to approve Personal Loans. Here are the documents required to avail of an instant Personal Loan for Physicians at Poonawalla Fincorp:

  • Proof of Identity (PAN card)
  • Proof of Address (Aadhar card)
  • Financial documents (Bank statements, IT returns)
  • Evidence of professional qualification (Medical registration certificate)
  • Proof of medical experience

The finest Physician Loans are designed to lessen the burden on doctors who would otherwise need to spend the early years of their career paying off student loans. They are a great choice to take into account while looking for financing to purchase a home, invest in real estate or renovate an existing property. To learn more about the benefits of Physician Loans reach out to our representatives and apply right away!

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