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Arranging Money to Start or Expand Your Dental Practice – Dental Practice Management

In this post, we will discuss how a dentist can raise the finance for establishing a dental clinic. There are a variety of ways and a dentist needs to think like an entrepreneur when setting up a dental practice. The ultimate financial guide for dentists.

SBI Dental Doctor Plus Bank Scheme

SBI Doctor Plus Scheme allows a hassle-free financing solution for qualified medical practitioners in any discipline. Although Doctor Plus loan scheme can be opted by all skilled medical practitioners, it is more suitable for freshers who have an entrepreneurial attitude. Here we will find what are the features, eligibility, security, documents required and other things to be considered for availing Doctor Plus Bank Loan offered by State Bank of India.


  • For buying medical equipment (For dentists doctors, the loan also covers dental implants besides material; for orthopedists, the credit also covers various replacements /implants for hip/knee/shoulder/spine, etc.)
  • Setting up a clinic, X-ray lab, nursing home, pathological lab, drug stores, etc.
  • For purchase of vehicles, ambulance, computers, etc.
  • Expansion / renovation / modernisation of existing premises.
  • For marketing exercises, business trips.
  • Any other activities related to the medical profession.


Eligibility for Doctor Plus Finance Scheme

  • Individuals / partnerships / Corporates / Trusts (with powers to borrow)
  • Promoters should be registered practitioners and possess minimum qualification such as MBBS / BAMS / GAMS / BDS / BHMS
  • Key promoters should be qualified doctors.

Loan Amount offered through SBI Doctor Plus

Maximum of Rs. 5 crores of which a subceiling for Working Capital limits at:

  • 10% of total loan amount for up to Rs 1 crore
  • 5% of total loan amount for above Rs 1 crore


Repayment of SBI Loan for Doctors

  • Maximum period up to 7 years
  • Maximum moratorium 12 months, except for construction purpose, for which moratorium can be up to 24 months

Primary Security for SBI Doctor Loan

Hypothecation of Assets financed by the Bank.

Collateral Security for SBI Doctor Loan

No need for tangible collateral security for loan amounts up to Rs 15 lakhs for Allopathic professionals and up to Rs 10 lakhs for other professionals (Homeopathic, Ayurvedic, Unani.)

Above Rs 10/15 lakhs: Tangible *collateral security of at least 25% and Personal guarantee of promoters.

*There is provision for concession on collateral security 



Insurance for SBI Doctor Loan

Insurance of assets purchased out of Bank loan and in respect of vehicles, comprehensive coverage as laid down.

Margin of SBI Doctor Loan

  • Up to Rs 5 lacs: *10%
  • Above Rs 5 lacs: *15%

* There is provision for concession on margin

Interest rates of SBI Doctor Loan

*Interest rate is based on score obtained on simplified credit scoring model

*There is provision for concession on interest rates

Processing Charges for SBI Doctor Loan

0.5% of Loan Amount

Minimum Rs 500; Maximum Rs 50,000

**Sanctioning of loans up to Rs 25 lacs is based on credit scoring model. 50% and above scorers will qualify to avail this facility

***Sanctioning of loans above Rs 25 lacs is based on CRA rating.



Documents required for SBI Doctor Loan

As per SME documentation

Unique features of SBI Doctor Loan

  • Eligibility as per credit scoring model – Minimum score – 50% for limits up to Rs.25 lacs; For above Rs.25 lacs, CRA model is applicable
  • Disbursements can be made in installments over a period of 24 months
  • Half yearly inspection is stipulated


Check out More Loans Available to Dentists from various banks in the next slide

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