4 Mistakes Doctors Should Avoid When Borrowing Money

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To fuel your clinic or hospital’s growth and maintain the momentum, you will require an infusion of finance from time to time. With the right financial aid, you can create value by adding a diagnostic centre, acquiring the latest equipment, or enhance productivity by installing clinic management software.

Owing to your qualification and experience, you can use tailored financing solutions for your various needs. But, knowing how to apply for a loan as well as how to use and repay it wisely requires you to avoid a few mistakes. Here are 4 that you should beware of.

Don’t skip research before you apply

As a practising doctor, you may find yourself with a packed schedule and it may be tempting to opt for the first loan you find. In doing so, you run the risk of missing out on an excellent loan. In exchange, you may end up with a complex application process, high interest rates, and several hidden costs. In the long run, such a loan will cost your business more than it will help it.

Therefore, it is important to shop around for the best loan before applying for one. Top lenders like Bajaj Finserv understand your job’s hurdles and offer professional loans that suit your needs and are quick to access. In fact, its Doctor Loan is a suite of two secured and two unsecured loans, designed to meet all your personal and professional requirements. The suite includes an unsecured Business Loan and Personal Loan of up to Rs.30 lakh, and a secured Home Loan and Loan Against Property of up to Rs.2 crore.

Don’t apply without assessing your needs

Everyone has a different style of running their business, but when it comes to your clinic, it pays to go beyond your intuition. Trade in your gut feeling for calculations and projections, so that you can apply for exactly as much finance as you need. Whether it’s leasing a new building, paying for diagnostic equipment, training staff or promoting your new clinic, ascertain why you need a loan and then decide how much you wish to borrow. This way you’ll be able to keep the cost of borrowing low, and choose the right loan variant too. The latter is especially important when you’re unsure of an exact amount and have only a ballpark figure.

In such a scenario, Bajaj Finserv’s Flexi medical business loans will give you the required flexibility. Here you can borrow money in parts and pay interest only on the amount you use instead of the entire sanction. You can also save up to 45% on EMIs by paying interest-only EMIs through the tenor, and repaying the principal at the end of the term.

Dismissing the eligibility criteria

In a bet to address your urgent requirements, you may apply for a loan without checking the eligibility criteria. This is risky, because if you don’t meet the criteria, the lender will reject your application. Not only does this affect your credit score, but it also affects your future prospects of acquiring credit. So before applying, note the eligibility criteria stated by the lender, work on improving your candidature if you need to, and then apply. Also look into lenders who offer you a loan on simple terms so that you can get finance in a timely manner. For instance, when you apply with Bajaj Finserv, you only have to have sufficient work experience as per your qualification.

Failing to plan your repayment

When you apply for a loan, it is important to ask your lender about the associated charges such as prepayment fees, cheque bounce penalty, foreclosure charges, etc. These, along with the doctor loan interest rates add to the cost of credit. Not reading the fine print means your loan will cost you more than you had budgeted for, which is far from ideal.

Further, plan how you will repay the loan through the tenor. Pick a duration wisely, and align your business’ finances to see if you will be able to service the loan on time, without accruing any extra dues. In this regard too, the Bajaj Finserv’s Flexi Loan facility comes in handy. By allowing you to repay the principal at the end of the term, it makes managing cash flow in the interim much easier.

Avoiding these simple mistakes can go a long way in ensuring a pleasant, stress-free borrowing experience. To make matters more convenient for yourself, be sure to check your pre-approved offer from Bajaj Finserv before you apply for expedited financing.

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