What are the interest rates for a business loan for doctors?

Business loans for doctors are specialised financial products designed to meet the funding requirements of medical professionals seeking to establish or expand their practice. The interest rates applicable to such loans vary based on certain factors:

• Base Pricing: The starting benchmark rate for doctor business loans across most banks or Non-banking Financial Companies (NBFCs) is usually around 10% per annum.
• Lender Differences: Banks, NBFCs, and other lending institutions offer competitive pricing on business loans for doctors based on their internal risk policies, cost of capital, and prevailing market rates. Thus, interest rates differ from one financial institution to another.
• Loan Tenure: Short-term doctor business loans may attract slightly lower rates in some cases compared to long-tenure loans. A long repayment period or a long-tenure loan involves higher interest costs.
• Type of Loan: Loan providers charge relatively lower interest rates on secured loans backed by assets like property or equipment as collateral owing to lower credit risk. Unsecured loans without collateral may generally have higher pricing.
• Doctor's Profile: Key factors like medical qualifications, years of practice, credit history, and income levels also impact loan pricing to some extent, as per lenders' credit policies. Well-established doctors may typically get better rates.
• End Use: Loans taken for the purchase of high-end medical equipment or expanding or renovating an established hospital/clinic may usually receive better pricing in certain cases, as per the lending institution’s discretion.

Doctors should assess their financing needs, and compare interest rates, processing fees and charges across multiple loan providers before making an informed decision on the appropriate loan product suiting their repayment ability.