Factors that Lenders usually Evaluate Before Approving a Professional Loan


Reputed financial institutions in India offer professional loans to help individuals meet specific finance requirements as per their profession. The amount borrowed can be utilised for professional as well as personal needs. Such advances might or might not require collateral from a borrower.

A professional has to pledge collateral in case he wants to avail a secured loan like home loan or loan against property. Unsecured loans to professional such as personal loans or business loans are collateral-free advances.

A doctor can utilise a professional loan in several ways to start a medical practice of his own. Nonetheless, approval of such credits depends on the fulfilment of eligibility criteria pre-set by financial institutions.

Such loans are also extended to finance personal expenses as well. Doctors can avail unsecured personal loans to meet any such expenditure, as they do not have any associated end-use restrictions.

Secured credits in the form of home loans or mortgage loans can also be obtained from various financial institutions.

Nonetheless, such a professional loan can only be extended if an individual has stipulated educational qualifications as well as work experience.

Loans for doctors eligibility criteria

The following points are required for withdrawing unsecured loans like personal loans or business loans-

  • Graduate doctors (MBBS) with a minimum of 2 years of post-qualification experience.
  • Super-specialist doctors (MS/MD/DM) do not require post-qualification experience for this advance.
  • Ayurvedic and homoeopathic doctors (BAMS/BHMS) must own a house or clinic, along with at least two years of post-qualification experience.

Individuals who are eligible to avail secured loans under attractive Bajaj Finserv doctor loan interest rate (such as loans against property and home loans) are-

  • Graduate doctors (MBBS) with at least 3 years of post-qualification experience.
  • Super-specialist doctors (MS/MD/DM) with at least 3 years of post-qualification experience.
  • Ayurvedic and homoeopathic doctors (DHMS) should have at least 6 years of post-qualification experience.

Additionally, applicants should have a house/ property registered in their or their family’s name for approval of credit. Individuals satisfying such criteria can look into the guide on how to apply for a doctor’s loan.

How do lenders evaluate applications before approving a professional loan?

There are various costs involved in setting up a medical practice, which can be funded through professional loans for doctors. However, approval of such credits is determined by financial institutions, which carefully analyse the following factors before sanction.

  • Credit report –

The officials of a lending institution first look for your credibility as a borrower. Your CIBIL report or credit report is a major deciding factor in whether you are eligible to borrow a loan. Lenders will only be sure of extending a loan for doctors to applicants having a CIBIL score of at least 750 or above.

  • Debt burden –

A borrower whose earning power is higher than the demands of the payment schedule is most likely to repay a loan on time. A safe ratio of debt to capital is essential for the approval of a professional loan.

  • Amount of loan –

The gross amount you are eligible to borrow is also a deciding factor in the loan approval. For instance, most financial institutions such as Bajaj Finserv extend professional loans of up to Rs. 35 Lakh (in case of unsecured advances) and up to Rs. 2 Crore (in case of secured credits).

If you are a professional looking for funding options for personal or business needs, the first step is to enquire about the eligibility, features and documentation required for availing a professional loan. It is also essential to select the right lender for affordable interest rates and best customer services.