India continues to experience significant growth in the healthcare and medical tourism sectors at a rate of 50% and 22%-25% respectively each year. Government expenditure towards these sectors has grown to 1.4% in the FY18 as compared to 1.2% in FY12. One of the contributing factors for such improvement is the introduction of multiple medical technologies and easier sources of healthcare finance readily offered by reputed lenders.
Such external finances for loans come with multiple borrower-friendly features and substantial credit amount. The sanctioned sum can be used to meet various personal and professional financial requirements. This is particularly beneficial for young physicians in the prime of their career who find it challenging to afford such major investments.
With such loans for doctors, they can now afford to establish and expand their practice without any unnecessary stress on their monthly regular expenses. They only need to furnish a few documents and avail the loan via a hassle-free application process to gain the financial backing. Additionally, lenders take into account the convenience of prospective borrowers and hence require easy-to-meet eligibility criteria for a doctor loan.
Availing such credits provides a solution to all the financial shortage that you might face during your medical practice. Apart from this, here are a few thumb rules or tips that would help you strategically manage your finances –
- Chalk out a growth plan first
Starting a private medical practice can be profit making if one has a proper strategy and time on building patient relationship as well as making sure all the other business processes going smooth. In the way of moving forward on the same, the first step to manage your finances is to keep track of the possible expenses involved in setting up a practice. It includes calculating the investments required to lease/rent a space to set up a clinic, avail medical apparatus, hire skilled employees, etc. – all of which helps doctors make their practice more visible.
With a blueprint of the potential expenses, you now know the loan amount that you may need to apply for via healthcare finance.
- Compare your financial obligations with the monthly income
To have great response in your business finance, you must have a good calculation on amount you have obliged as compared to amount you are earning on monthly basis. To have an idea about your current financial capabilities, calculate the ratio between your monthly financial obligations and the revenue from your practice. Following this you can calculate the EMI that you can afford without any further stress on the monthly budget in case you need to avail a doctor loan.
The one of the major things to pay attention here is your savings. According to the business rule, one should have at least 10% post tax income and could be continuously increased as your business being matured.
- Avail external financial assistance from reputed lenders
Young physicians are often in need of credit considering the initial expenses involved in starting and expanding their practice. Taking into account the diverse financial requirements of the medical practitioners, leading financial institutions offer customised advances such as Loan for Doctors.
- Consolidate all your existing debts
Young physicians often struggle to establish their practice considering their financial crunch and hence avail multiple loans to meet their professional and personal financial goals. However, an inevitable hassle arises in the case of repayment of multiple debts. An easy way to avoid this is by availing a single credit that caters especially to the requirements of medical practitioners.
Loan for Doctors from reputed lenders like come with multiple features targeted at providing the financial assistance required by the medical professionals. Additionally its lower rate of interest and hence pocket-friendly EMIs make it the best go-to option for debt consolidation.
Borrowers can thus utilise the funds from a doctor loan to repay all the existing credits and opt to make a single EMI payments instead. This helps them save on the additional interest amount from various loans.
However, make sure to look into the why and how of healthcare finance before availing a similar tool. Read carefully into the terms and conditions and look out for beneficial features like online account management and higher credit amount with competitive rate of interest. This will help ensure that you boost your business sans any unnecessary stress on the budget of an individual.