2 min read
25 May 2021

When it comes to signing up for a loan, choosing the correct provider gives you many benefits, apart from monetary savings. So, not only must you evaluate the loan, but you must also pay close attention to the provider. Here are some important questions to ask when considering various loan providers.

1. Which is the best source of finance for your purpose?

Know your financial needs: The market is full of options that offer varying benefits. Start by understanding your requirements to ensure that the source of finance and the lender are best equipped to deal with your needs.

Go for a customised option: If you are a practicing or consultant doctor, a customised doctor loan is the best source of finance, as it caters to your busy schedule and has simple eligibility criteria. Also, going for a general loan might not give you the best interest rate, features and benefits.

Choose the right product: Narrow down on the loan you need from the range of doctor loans, which includes personal loans, business loans, home loans and loans against property. For example, while you can use a personal loan for anything, if your goal is to buy a home, a home loan will offer more benefits than a personal loan. The customer service providers will also be better equipped to handle your queries.

2. Do you want a secured or unsecured loan?

Understand your risk capacity: It is important to deliberate whether you are comfortable with pledging assets as collateral. Those comfortable putting assets at stake can choose a lender offering secured loans. Usually, home loans for doctors and loans against property for doctors are secured and offer higher loan amounts. But, if you aren’t comfortable with risking assets as collateral, take your time to find a lender who doesn’t need this. Usually, personal loans for doctors and business loans for doctors are collateral-free.

3. What is the principal you need to borrow?

Calculate the amount: Knowing the principal amount is key when borrowing. Without an idea of how much you need, you may end up over or under-borrowing. List all the tasks you want to achieve and the cost of each. Then, total the costs and select a principal accordingly. For example, if you are taking a business loan for doctors to fund the purchase of equipment like intravenous pumps, pulse oximeters, vital sign monitors and anesthetic machines for your surgery room, calculate the cost first and then choose your loan amount.

Finalise the lender: Choose a lender offering you the amount you seek at favourable terms.

4. Would you need one loan or a combination of loans?

Choose the right mix: In some cases, multiple loans will fulfill your needs better. Choosing a mix of a collateral-free loan and a secured loan from one lender makes managing multiple loans easier. Choosing a combination of loans helps you achieve your goals and enjoy customised benefits from the provider. For example, home loan borrowers can gain from services like property search and property dossier and avail pre-approved offers on a personal loan.

5. What is the EMI you can pay?

Choose the right tenure: If you think your income is sufficient to pay high EMIs, opt for a short tenure so that the loan is cleared quickly. If you want to pay nominal EMIs, then opt for a loan that spreads your EMIs over a longer tenure so that your monthly income is not strained. Choose a lender who gives you the flexibility to pick the tenure that suits you best.

Pick a low-rate loan: Seek a lender offering an interest rate that keeps your EMIs to a minimum. The lower the interest rate, the easier it will be to repay the loan. This will also make your loan more cost-effective.

6. How long does it take to get the loan?

Speed of application and disbursal: Loans should help you meet all kinds of needs, especially unexpected ones. That is why you must pick a provider that offers instant approval and quick disbursal. Waiting for days isn’t ideal, and if you get the amount in the form of a cheque, you will also have to wait for it to clear. So, pick a lender that grants instant approval and transfers the amount to your account directly. Bajaj Finance offers speedy disbursal of unsecured loans within 48 hours* of approval.

7. Is the application process easy?

Simple eligibility: The loan is given to you based on your credentials as a practising doctor. So, pick a lender that needs only a handful of documents to prove your eligibility when applying for the loan.

Apply as per your convenience:
Pick a lender who allows you to apply online or offline. While you can always visit a branch, you should have the option to apply online in minutes. Some lenders also allow you to send an SMS or give a missed call to start the application process. To add to the ease of application, choose a lender who will provide doorstep service to pick up your documents.

8. Does the loan give you flexibility in borrowing?

Borrow as you need: Pick a lender that gives you access to a Flexi loan account, so that you can borrow when the need arises, and repay when you have excess funds. This facility gives you access to a credit line for a specified tenure. You can borrow as much as you need within the credit line and make part prepayments when you can. There are no limits to how many times you borrow, which gives you maximum flexibility to fulfill your financial needs. The advantage of this facility is that you will have to pay interest only on the amount you use. This helps you save interest while tackling urgent or unpredictable needs easily.

9. Does the loan give you added benefits?

Value-added services: Apart from the loan amount, pick a lender who offers customised services such as professional indemnity insurance, a property search service or a property dossier if you are purchasing a home.

10. What are the extra charges that you have to pay?

Pay close attention to charges: Apart from the interest, you have to pay a processing fee, part-prepayment fee, foreclosure charge, etc. Ensure that your chosen lender is transparent about these charges and that the fees are nominal. If not, these hidden charges will increase the cost of taking a loan significantly. Asking yourself these questions will clarify which loan provider you should borrow from. It will also help you choose a loan that addresses your needs.

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