How to Get the Best Interest Rate on Doctor Loan?
Financial institutions provide specialised loans to individuals of various professions, doctors being one of them. They can avail a doctor loan from renowned lenders and utilise the funds depending on the financial requirements.
The doctor loan category has 4 products under it:
- Personal loans
With Personal Loans for Doctors, you can get up to Rs. 35 Lakh from Bajaj Finserv which can be utilised for any short-term monetary needs. These loans have tenors ranging from 12 to 96 months. The doctor loan interest rate is also affordable.
- Business loans
Business loans can also amount to Rs. 35 Lakh which can be used for investing in your business. These loans also have tenors ranging from 12 to 96 months
- Home loans
Home loans are the ideal choice for purchasing a house as they can provide you with the financing of up to Rs. 2 Crore. The loans offer repayment period of up to 20 years.
- Loan against property
Loan against property is the secured alternative to personal loans and can also provide up to Rs. 2 Crore. The loans tenors for these loans can also go up to 20 years.
Doctors can avail any one of these loans from NBFCs depending on the situation at hand. No matter which one you go for, your primary aim will be to get lower interest rates.
Here are some of the ways you can get the best doctor loan interest rate:
I. Improve your credit score
A credit score of 750 or above is a must when availing unsecured loans like personal loans or business loans. The higher the credit score you have, the more creditworthy you are. Thus, financial institutions may offer lower interest rates if you hold a good credit score.
The best way doctors can improve their credit score is by taking a credit card. Follow the tips mentioned below to increase your score with a credit card:
- Use the card every once in a while.
- Pay your bills in due time.
- Always pay the total amount due and not the minimum amount.
- Keep your credit utilisation within 30-50% of your limit.
Also, ensure you don’t apply for multiple credit cards at once as this will lower your credit score.
II. Go for an NBFC
NBFCs are premier lending institutions that provide doctor loans. They also provide competitive doctor loan interest rate as compared to other lenders.
III. Have a sound professional experience and income
Having a sound professional experience may help you secure a lower rate of interest. Likewise, NBFCs can provide you with low interest rates if you have a comparatively high income.
IV. Go for a higher amount or longer tenor
You doctor loan interest rate will be lower if you opt for a high loan amount or a longer tenor.
V. Lower your Fixed Obligation to Income Ratio (FOIR)
The Fixed Obligation to Income Ratio (FOIR) or debt-to-income ratio is the ratio between your monthly income and your fixed payments that you make every month.
NBFCs give more preference to customers who have a ratio of 50% or less. This way, you have ample cash in hand for paying your EMIs and less chance of defaulting.
Lowering your FOIR can help you get the best interest rates on doctor loan.
VI. Compare the lenders
Last but not least, comparing the lenders is one of the time-tested methods for availing the best interest rate on doctor loan.
Follow the above and fulfil all the eligibility criteria for doctor loan to receive financing as quickly as possible.