Doctors are one of the busiest professionals in India, given the spectacularly low doctor-population ratio in this country. WHO recommends a doctor-population ratio of 1:1000, whereas India has one doctor for every 11,082 people.
This constant high-pressure situation leaves a doctor with little or no time to plan his/her finances well. It is, therefore, relatively common for doctors to find themselves making financial blunders which could be easily avoided.
These blunders often manifest when doctors opt for hospital or professional loans. Mentioned below are some common mistakes that doctors commit while availing a healthcare finance for your hospital.
Common mistakes that doctors commit while availing a healthcare finance for your hospital
1- Not researching the options available
Multiple lending institutions offer hospital loans to doctors. Every lender varies in terms of structure, repayment conditions and interest rates. Doctors should compare the features and benefits of multiple financial institutions and choose the one offering the most favourable terms and conditions.
2- Ignoring their credit score
This is one of the most basic financial planning mistakes that doctors should avoid making. It doesn’t matter whether you are a doctor or an engineer, every financial organisation will check your credit record before approving a loan. For the quickest approval and best interest rates and terms, you should hold a credit score above or around 750.
If you have repaid all dues in the past within the due dates and have not availed too many credit cards at the same time, your credit score is likely to be fine. Nevertheless, check your credit score before applying for a loan. If you have a low score, it is recommended to take necessary actions to pull up your credit score before applying for the loan.
3- Going for generic loans instead of profession-specific loans
Most financial institutions recognise your high earning potential as a doctor. They also recognise the fact that a doctor’s financial challenges are quite unique to their profession. As such, lending organisations provide loans tailor-made to meet the financial needs of a doctor.
Hospital Loan is one such profession-specific credit with rich features.
- Financing up to Rs. 30 Lakh
- Unsecured loan
- Disbursal of credit within 48 hours
- Minimal documentation
It is always advisable to know everything about doctor loan and avail one as its features are fully in tune with your profession.
4- Not having a sound repayment strategy
This is one of the most significant financial blunders made by doctors while applying for a hospital loan. A detailed repayment strategy should be formulated before availing the loan. Know the amount that you can pay as monthly EMIs and avail a loan amount accordingly. Do not overshoot your repayment capacity by a significant margin.
These are some of the most common financial blunders made by doctors while availing hospital loans. While these loans can solve many of their existing financial problems, they may also turn out to be a burden if you do not plan everything well in advance. Take some time out of your busy schedule and formulate a detailed analysis before opting for a loan.