A Guide to Understanding Loan Repayment Options for Physicians


Many medical professionals utilise financial advances such as a physician loan to improve the services they provide, develop their own clinics, invest in the latest medical technologies, etc. However, such advances will obviously follow up with repayment.

It is vital for the healthcare professional to invest in the right aspects of their practice and generate substantial revenue to meet the repayment terms of such loans.

Here are few pointers to help a physician better repay their loans.

  1. Maintain a high CIBIL score

A high CIBIL score helps lower the doctor loan interest rates. The higher your CIBIL score is, the better your overall credit score. The score ranges between 300 and 900. Your chances to avail a loan increases with your score. Any score of 750 and above is considered a good score.

  1. Pay your EMIs on time

Equated Monthly Instalments or EMI payments must be made on time. Timely repayments will increase the lender’s confidence and help you receive several benefits in the future. Besides, regular payments of EMIs in time will also increase your financial discipline and help clear all types of debts. That is equally true for a physician loan as well.

  1. Repay loans with higher interest first

A doctor may need multiple loans at the same time, for various reasons. The ones which have the highest interest rates need to be repaid faster. That way, doctors can clear the loans with the highest repayment amounts first and then turn to the other ones.

  1. Invest in technology

One of the reasons why physicians avail Loans for Doctors is to improve upon the services they provide with upgrades to their setup. If you have applied for a doctor loan, you can implement the advantage of the emerging medical technologies in India. Invest in modern technology such as sustainable implants, tissue regeneration, and better overall care for rare-to-common diseases like Parkinson’s.

  1. Pay bigger EMIs with the rise in income levels

With an increase in income, you may choose to repay the physician loan quicker with higher EMIs. Reduce the tenor as well as the total amount of interest you pay. Get rid of debt sooner. Shift your focus and your finances towards better modern services, e.g. you can play your part to catalyse the emergence of Nanotechnology in India.

  1. Choose the right loan

If you require short-term financing options, you can opt for a doctor loan with a short tenor although it will mean you will have to pay higher interest amounts. On the other hand, if you want to minimise your monthly financial liabilities, opt for a long loan tenor. You can start repayments faster with each passing year as your income levels rise, while all your financial needs are taken care of.

  1. Choose a loan with part-prepayment facility

Most NBFCs offer physician loans, but not many institutions offer part-prepayment facilities. NBFCs like Bajaj Finserv offer physician loans with pre-payment options. After the first EMI is paid, you can prepay whatever amount you desire up to 6 times every year.

  1. Consider Franchising

Healthcare professionals are investing booth funds and time into franchising on a global scale. In India, franchising is still emerging, with only 3% of medical professionals adopting the franchise model.

Indian medical professionals should consider health care franchises as the future of medical practice. As a doctor, you can consider collaboration with a franchise to utilise established brand names, expand domain knowledge, and to have marketing support for the medical services you provide. Increase your exposure and yield more ROI in the long run.

Make your repayment easier with financial discipline and sound planning. Pay your EMIs on time, go ahead with part prepayments when you have available funds and scale your practice with the right setup.