Dr. Jessica Albert, a resident of Goa, and an MD super-specialist had a practicing history of 10 years. She had a dream of having her own small hospital in her native city as she wanted to serve the place that made her a doctor. Although she knew how to run a hospital, what she lacked was the fund. She had heard of a doctor loan that it could help her.
She applied for a doctor loan on a leading lender’s website, but her application was rejected! She was in a state of shock that her doctor loan application could not be approved. She discussed it with her another friend who had availed a doctor loan some time back who told her that she might have committed some mistakes.
If you are one of the medical practitioners whose doctor loan application could not see the ‘light of the day,’ must avoid some common mistakes! Let’s go ahead and reveal six major doctor loan mistakes that you should avoid.
Table of Contents
Common mistakes to avoid while applying for a doctor loan
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Not comparing various offers
The first thing to do while applying for any loan let alone a doctor loan is that one must compare the loan offers based on their offered doctor loan interest rate. Thus, make it a point always to compare banks and non-banking finance companies (NBFCs) products. It will help you bring out the best-suited offers as per your needs and affordability.
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Ignoring the credit history
One of the prime reasons for doctors or anyone not getting their loans approved is ignoring their CIBIL or credit histories. Thus, before applying for a doctor loan or any other loan, it should be your prime duty not to ignore your credit history at all. You should also make it a point to maintain a good CIBIL score. Strong credit history or score assists in helping you get a loan approval at a lower doctor loan interest rate.
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Not disclosing existing debts
How will you manage another loan when you already have too many existing debts? Yes, not disclosing the existing debts is another mistake that you need to avoid. Be honest while disclosing your loan burdens so that an upcoming loan does not become a burden in the long-run.
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Applying for a loan amount higher than your eligibility
Another reason that doctor loan application is not approved because of asking for a loan amount greater than the eligibility criteria for doctor loan. Suppose if a lender can sanction you only Rs.30 lakh as per the eligibility criteria for doctor loan, and if you apply for Rs.35 lakh, the application won’t be approved. Thus, always be sure of what you want so that a prospective lender can infuse great confidence in your candidature.
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Not going through the terms and conditions
Make it a point never to ignore the terms and conditions of your loan agreement. You should ensure reading all the fine prints and clear doubts to avoid all future issues.
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Not having any repayment strategy
It is also not a good thing putting off the loan repayment planning for a later phase! Rather, it should be done at the time of applying for the doctor loan itself.
The Bottom Line
Now that you are aware of the common financial mistakes to avoid while applying for a doctor loan try not to repeat them when you have a loan to apply!
Once you have corrected all issues, leading online lenders will feel confident to offer you a loan at a lower rate of interest.
Once you are loan confident, apply online, and it’s a high probability that your doctor loan application will be approved.
