Dentists Need to Know When Applying for a Medical Practice Loan

A successful dental practice requires stable financial resolutions to keep it running smoothly. Apart from creating a progressive patient experience, dental practices are most importantly dependent on upfront investments. Innovative measures like buying the newest medical equipment or upgrading to the latest technology thus get implemented easily. For that, dentists take the aid of medical practice loans.

Medical Practice Loan
Medical Practice Loan

Medical Practice Loan

A doctor who owns his or her practice qualifies for almost all medical practice loans owing to their –

  • High-income potential
  • Strong net value
  • Stable profits

Doctors generally have ample financing options as the medical field is considered to be the safest bet for lenders. However, while choosing a doctor loan, he/she always seeks for that offer which fits his/her requirement.

Recommended For You:

Easy Funding Options for Your Practice!

When you are a doctor, you have a lot on your plate like the dependency of patients, the easy running of your clinics, the daily expenses, the execution of accurate healthcare revenue management and what not! However, for all these, you need financing. Therefore, NBFCs like the Bajaj Finserv have come up with a special Doctor Loan which offers an amount of up to Rs. 35 Lakh.

For all the medical practitioners, Bajaj Finserv has come up with special financing solutions, offering a feasible doctor loan interest rate. Packed with features and wide-ranging benefits to aid your career growth, you can also check in their pre-approved loan offers. They also provide these schemes on homes loans, business loans, personal loans and EMI financing on products and various other financial services.

This simplifies your loan availing procedure, and moreover, as you can repay in easy EMIs, life only gets better with such financial aids coming from Bajaj Finserv.

What are the things you need to consider for applying for medical practice loans?

When you apply for a medical practice loan, consider the following areas of concern before walking on the path of approval –

1. Financial health examination

Dentists must adhere to the current financial health of their practice. As a step of acquiring any kind of credit, this should be the first step inadvertently. This examination comprises –

  • Key practice performance indicators
  • Billing methods and cash collection
  • Evaluation of your practice’s current cash flow
  • Revenue management cycle’s effectiveness
  • Profit earning capacity

All these, taken together, provide you with an accurate picture of where your medical practice stands right now! Understanding this position will give you an idea of how to proceed further by taking up a doctor loan and utilizing it to its optimum.

2. A loan which meets your needs

Medical practice loans are not the “one size fitting all”! Every segment has a different scheme. Thus, for dentists, too, the paradigm proves different. For example, if you are buying or updating your medical equipment or technology, then the loan offer will be different. On the other hand, if you are starting up brand new practice or increasing your office space, then the loan scheme will be an alternate one. If you seek for someone to fund your marketing campaigns, then also, you will avail a different loan offer!

Every type of loan has its own terms, interest rates, pre-payment options and fees which determine the EMI. The tenor and clauses of such loans vary from one another depending on the specific requirement.

3. Credit score and a strong record of paying on time

When you avail a loan, be it of any type, you need to have a positive credit score preferably above 750. Having a consistent repayment history plays a big part in it.

Sustaining a high credit score by ensuring timely repayments of loan installments gives you a chance to avail loans easily. Moreover, the sanctioning process also becomes hassle-free and quick!