Loan Against Property for Doctors: 5 Important Questions to Ask Before Applying



In a bid to make financing meaningful for doctors like you, lenders offer tailor-made solutions. One such option is a loanagainst property for doctors, a secured loan backed by a high-value asset. Also regarded as a mortgage loan, it offers a hefty sum that’s suitable to meet big-ticket expenses with ease.

Given your qualification and technical astuteness, you can access financing without any hassles. However, this doesn’t mean that you shouldn’t understand the nuances of the loan before you apply. To make a smart borrowing decision, it is crucial to ask yourself the following questions before applying for a loan against property for doctors.


For what purpose can I use the loan against property for doctors?
Unlike other secured loans, a loan against property for doctors is a versatile option that you can use for a number of purposes. Whether you want to buy or upgrade equipment, expand your medical practice, install software, buy a home, take a vacation, or pay for children’s education, with a loan against property for doctors you can meet a variety of goals with ease.

Do I have a good credit score and history?
When approving a loan against property, one of the most important things that lenders check is your credit score and history. A credit score is a metric that determines your creditworthiness and typically, a score of 750 and above is considered good as it indicates that you have honoured your past debts without defaults. In fact, it is instrumental in getting a competitive interest rate. Any creditscore below 750 makes you a risky applicant. As a result, lenders may charge a higher interest rate or sanction a lower loan amount.

What quantum of funding can I access with a mortgage loan?
Since a mortgage loan is secured by your property, lenders offer a sanction based on its market value. So, depending on the value of your assets, you can access a huge sanction with which you can meet all your expenses, big or small. However, bear in mind that lenders calculate your loan amount based on their LTV ratio. To avail a high-value sanction of up to Rs.2 crore at a nominal interest rate, apply for a Loan Against Property For Doctors from reputed lenders like Bajaj Finserv.

Will I get flexibility in terms of withdrawal and repayment?
Whether you want to update your clinic’s software or repair equipment that is critical to your practice, your loan should allow you to withdraw and repay the same as and when a need arises. This way, you can run your practice smoothly. To offer greater flexibility in this regard, Bajaj Finserv lets you avail the loan on Flexi terms.

This facility allows you to borrow in parts, as per your needs and pay interest only on the withdrawn amount instead of the entire sanction. You can also make part prepayments and save a significant amount in the long run. Further, you can pay interest-only EMIs throughout the tenor and repay the principal at the end, to further improve cash flow management. When you opt for this repayment option you can save up to 45% on EMI.

What are the additional charges that I have to pay?
Apart from interest, a loan against property for doctors also comes with other charges that add to the total cost. These may be processing fees, EMI bounce charges, penal interest for EMI defaults, prepayment and foreclosure charges and others. While some lenders disclose such charges, others may not. To avoid unpleasant surprises, plan for such charges in advance and discuss them with your lender before signing the loan agreement.