Apart from serving as a source of emergency medical funding, healthcare finance also encompasses advances medical professionals seek for practice expansion and growth. The latter has been made available to doctors serving at or running multi-speciality hospitals and clinicians alike.
Nevertheless, like any other financing option, completing a loan application successfully and receiving fast approval involves meticulous planning for a doctor too. The right borrowing approach can allow one to secure funding with the least hurdles.
Here are thus some quick tips to help you with your doctors’ loan application for improved chances of fast approval and disbursal.
Healthcare finance – 5 easy tips to apply for improved chances of approval
1. Create a proper practice expansion plan
Whether you are seeking to go forward with hospital expansion to a new location or planning to increase existing facility’s capacity, a well-thought-out plan in place is always a plus. To create fool proof planning, you can identify the facility aspects that require expenditure. Match them with the outcome; be it improved diagnosis, advanced treatment or better patient handling.
A suitable plan in place lands you in the good books of a financial institution, thus allowing you to secure funds conveniently. For instance, when installing advanced software, you can project how data science can reduce patient waiting time, thus making such capital infusion fruitful to the practice’s overall objective.
2. Reduce your debt-to-income ratio
Debt-to-income ratio, also known as FOIR or Fixed Obligation to Income Ratio, is a percentage metric that indicates the total percentage of income occupied towards fixed liability repayments. It is calculated on a monthly basis and takes into consideration liability towards the new loan being taken for repayment capacity assessment of an applicant. Ideally, FOIR of any individual should not be more than 50%; the lesser the better.
Thus, when seeking healthcare finance, you can assess your existing FOIR and take necessary steps to bring it down to an acceptable percentage. Doing so shall project a high repayment capacity while you apply for the advance, allowing the lender to easily approve funding. With lenders like Bajaj Finserv, healthcare professionals with the right eligibility can avail of loans for doctors of up to Rs.42 lakh without much hassle.
The lending institutions also bring pre-approved offer to simplify the process of availing of funds and make it less time-consuming. These offers are available on a range of financial products, including personal loans, business loans, and the likes. You need to provide only your name and contact number to check your pre-approved offer.
3. Keep necessary documents handy
Documents serve as proof of eligibility fulfilment, allowing the lender to assess your loan eligibility easily. It is thus essential that you provide all necessary documents when applying to streamline your application process for healthcare finance. You can simplify the process by keeping all necessary documents handy even before proceeding to apply for funding. Apart from KYC, other necessary documents include your income proofs, professional qualification certificates, and proof of practice or employment experience.
4. Apply with a high credit score
Credit or CIBIL score is a 3-digit number that allows lenders to assess an applicant’s creditworthiness, with the ideal score being 750 and above. As this metric allows financial institutions to assess the risk involved with lending to an applicant, one must check their credit score before applying. Better yet, knowing how doctors can increase their CIBIL scores well within time by taking the necessary steps will reflect financial discipline.
5. Apply for a loan amount as per your financial standing
It is essential that you apply for a loan amount wherein the monthly EMIs do not exceed your repayment capacity while sparing a good portion of your income free. You can decide on loan amount suitability with the help of dedicated financial tools like an eligibility calculator available online.
Make sure that you have checked your lender-specific eligibility requirements and fulfilled them before applying for improved chances of healthcare finance approval. Provide all primary and secondary income documents as proof of repayment capacity to negotiate for favourable terms on your professional loan.
Finally, one can use an eligibility calculator to assess his/her maximum loan eligibility and apply accordingly for convenient loan approval. Make sure to meet all eligibility requirements with your lender and proceed to apply with the necessary documents.