Various Bank Loans Available For A Dentist In India




This article gives a list of all the major bank loans that are available for a dentist in India. Bank loans are one of the most feasible and legal ways that are available to dentists.


Establishing a private dental practice requires a huge amount of financial investment. Many times it is not easy to personally raise money for starting a dental practice. In such a case a dentist needs to raise money from external sources. Either the dentist can borrow money from friends and family or take a loan from a bank.

Taking a bank loan or borrowing money from sources is a difficult process. You have a difficult choice to make.


So, before you read all the bank loans that are available to a dentist, read this article that tells you how to choose a bank loan and how to raise the finance for your dental practice. (the article will open in new tab)


Now let’s see all the bank loan options that are available for a dentist

Loans for Dentists From Central Bank Of India

This is exclusively for all dentists who are members of IDA

This loan Scheme for Dentists is known as CENT DENTIST

  • The best part of this scheme is that it has been exclusively made for dentists.
  • It covers all the aspects of dentistry.
  • It takes into consideration if you are a New Dentist or Experienced Professional.
  • It takes into consideration where your practice is located – Urban Areas or Rural.

Purpose

  • Purchase of equipment including computer for the clinic, setting up of Dental Clinic etc., clinic-cum-residence, expansion /renovation /modernization of existing clinic.
  • Working Capital requirement including stock of medicine /disposables.

Eligibility

  • Applicant/Dentist should be a member of IDA. Original of IDA membership certificate and photocopy to be submitted. Original will be returned after verification.
  • Individuals/Partnership/Companies/Trusts.
  • Applicants / Promoters should have recognized qualification in BDS/MDS, should have completed House Surgeoncy to establish Dental Clinic and should be a registered Dentist.
  • Partnership – Out of total partners at least 50% should be qualified and registered Dentists.
  • Company – At least 50% of the promoter/directors should be qualified and registered Dentists.
  • Trusts – Trusts should be registered with power to borrow. At least one of the trustees should be qualified and registered Dentist.

Quantum of Loan:

  • New Dentists (within 3 years, including house surgeoncy) in any location Maximum: Maximum Rs.10.00 lakh, inclusive of working capital limit up to maximum of Rs.1 lakh, if required.
  • Other Dentists:-
  • Rural/Semi Urban areas
Maximum Rs.50.00 lakh, inclusive of working capital (WC) limits upto Rs.5 lakh, if required.
Urban/Metro areas Maximum Rs.200.00 lakh, inclusive of working capital (WC) limits upto maximum of Rs.10 lakh, if required.

Margin

  • 25 % for construction of Dental Clinic/WC.
  • 15 % for purchase of new equipment.

Security

Primary:

  • Hypothecation of assets acquired out of bank finance.
  • EM of property with building owned by the Dentist in case construction of building for clinic/clinic-cum-residence is done in owned property

Collateral

  • Collateral of minimum 50% of loan sanctioned to be provided by the borrower. The loan will not be covered under CGTMSE Scheme

Rate of Interest

  • (a) For new Dentists.

MCLR+ 0.5% (floating)

  • (b) For other Dentists.
Loans upto Rs.100 lakh Loans over Rs.100 lakh
Purchase of equipments, WC MCLR+1.75 % (floating) MCLR+1.75% (floating) on entire loan amount.
Construction of Dental Clinic / Clinic-cum-residence MCLR+2.00 % (floating) MCLR+2.00 % (floating) on entire loan amount

Guarantee

For loans above Rs.100.00 lakh, Personal Guarantee of all the Partners, Promoter Directors, Trustees to be taken in case of Partnership, Limited Company and Trust account respectively.

Disbursement

Branch can make multiple disbursements over a period of 12 months from the date of sanction on the basis of requirement. However, the maximum period of loan should not exceed 7 years or 10 years as applicable/mentioned in Para 11 under Repayment Period parameter.

Repayment Period

  • New Dentists: The maximum repayment period will be maximum 66 months including 6 months of moratorium.
  • Other Dentists: In case of purchase of equipment etc. excluding WC, maximum repayment period is 84 months including moratorium period of 6 months. In case of Loan for construction of Dental Clinic / Clinic-cum-residence, maximum repayment period of loan can be 10 years including moratorium period of 12 months.You can check out the official link for the loan here.


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 qualified medical practitioners, it is more suitable for freshers who has 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 equipment; for orthopedists, the loan also covers various replacements /implants for hip/knee/shoulder/spine etc.)
  • Setting up 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 etc)

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 insurance as laid down.

Margin of SBI Doctor Loan

  • Upto 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

Special 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


See Next Slide for more bank loans for Dentists

…See The Next Slide…

SBI Dental Doctor Plus Bank loan

Simplified and collateral free bank loan from SBI for registered Dentist who has BDS and above qualification. The details of Dental Doctor Plus of SBI is given below

Eligibility for availing SBI Dental Doctor Plus bank loan

  • Individuals / Partnership firms / Ltd. Co / Trust.
  • Promoters should have minimum BDS and should be registered practitioners.

Purpose of Dental Doctor Plus

  • To boost the financing to Dental equipment under tie-up arrangement.
  • To finance qualified dentists
  • For buying equipment
  • Any other activities related to Dental profession

Nature of facility

Term loan

Margin

  • Up to Rs. 25,000 – NIL
  • Over Rs. 25,000 and up to Rs. 5 Lakhs – 10%
  • Over Rs. 5 Lakhs and up to Rs. 10 lakhs – 20%

Tenure of Loan

  • Maximum period of 5 to 10 years with maximum moratorium period of 6 months
  • For construction purposes, the moratorium period is 12 months (can be relaxed upto 24 months at the discretion of an authority one level higher than the sanctioning authority)

Primary security

Hypothecation of assets financed by the Bank

Collateral security

NIL

Loan amount

Maximum of Rs.10 Lakhs.

Oriental Bank of Commerce Doctors Loan

SCHEME FOR LOANS TO DOCTORS

Eligibility Qualified registered medical practitioners with minimum qualification BIMS/BAMS/ BUMS/ DHMS/BHMS/ BPT/ MBBS/BDS & above
Constitution of the Borrower Individuals, joint borrowers, proprietorship, partnership and Company (Pvt./Public Ltd.) concerns where majority of share holding is by qualified medical practitioners only in case of firms/companies.
Purpose 1. For acquiring premises on ownership basis required for running Clinics/Nursing Homes, subject to compliance with license / registration requirements under laws of State / Central Govt. as the case may be, be ensured.

2.  For purchase of furniture & fixture, furnishing, renovating existing clinics.

3. For purchase of standard make medical equipments, professional tools, computers, UPS, software, library, books

Amount of loan Upto Rs.100.00 Lacs
Type of facility a) Term loan

b) Clean Over Draft limit – Rs. 5.00 lacs (Subject to availability of tangible collateral security equivalent to 200% of the OD loan limit, within the overall composite loan limit ceilings).

Security Prime security

1.Hypothecation of assets to be purchased/acquired with the help of bank’s finance.

2.Equitable mortgage of business premises if financed by the Bank.

Collateral security :

For loans upto Rs.5.00 lac

1. Doctors having qualification of MBBS/BDS and higher professional degree

No collateral security, except one third party personal guarantee of person having adequate net worth preferably of spouse.

2.Doctors having qualification other than the above.

No collateral security, except two third party personal guarantees of persons having adequate net worth, one guarantee shall be of spouse.

For loans above Rs.5 lac and upto Rs. 10.00 lacs

Tangible & realizable collateral security equivalent to 50% of the loan amount and one personal guarantee preferably of spouse.

For loans above Rs. 10.00 lacs

Tangible & realizable collateral security equivalent to 75% of the loan amount and one personal guarantee preferably of spouse.

Margin      25%
Rate of Interest Click here to view Rate of Interest.
Penal Interest In case of delayed payment, a penalty of 2% on the overdue amount for the over due period shall be charged.
Process fee/ Upfront fee 0.50% of the total limit sanctioned subject to minimum of Rs.500/- +Service tax, if any.
Repayment Total repayment period -7 years inclusive of maximum moratorium period of 1 year.

See Next Slide for more bank loans for Dentists

…See The Next Slide…

HDFC Loan for Professionals (including Dentists)

You will get some exclusive features and benefits with your HDFC Bank Professional Loan

  • In – Principle loan eligibility in 1 Minute online and across all branches
  • Convenience of contacting the bank through SMS, Webchat, Click2Talk, PhoneBanking and at Branches
  • Professional Loan is also available on the basis of repayment of home loans, auto loans and credit cards.
  • Loan Amount up to Rs. 20 Lakhs (Up to Rs. 50 Lakhs in selected locations).
  • Flexible repayment options ranging from 12 – 60 Months.
  • Credit Protect Insurance Plan:
    We help you take care of your loved ones with a Credit Protect Plan to cover your loan at a nominal premium.*In case of Natural / Accidental Death of the customer, the customer / nominee can avail of the Payment Protection Insurance (Credit Protect) which insures the principle outstanding on the loan up to a maximum of the loan amount.We will charge a premium for this product, and the premium amount will be deducted from the loan amount at the time of disbursal. We will also charge service tax and applicable surcharge/cess at the rates notified by the government.

Secure your business loan with Credit Protect.

Key benefits of policy

  • Protects the family by paying off the loan amount in case of death of the customer
  • Life Coverage – provides peace of Mind
  • No need to use other savings to repay the loan
  • Tax Benefits as per applicable laws
  • One convenient package – loan + insurance

* Premium will be charged for Credit Protect will be deducted from the loan amount at the time of disbursal.

(* terms and conditions of the Insurers shall apply, Above product is offered by HDFC Life Ins Co.ltd)

Already have a Professional Loan?

Reduce your EMI, transfer your existing Professional Loan to us. Professional Loan balance transfer offers special and exclusive benefits.

  • Interest rate as low as 12.99* % on existing loan transfer.
  • Processing fees as low as 1.25%

Now reduce your EMI burden with our balance transfer programme.

Apply now for a Professional Loan Balance Transfer.

Eligibility and Documentation of Loans for professionals

Get details on eligibility criteria & documents required for HDFC Bank Loans for professionals

Doctors, Chartered Accountants, Architects and Company Secretaries Professionals involved into Self Practicing or Consultancy.

With:

  • Minimum Experience: 4 years Post Qualification experience for Doctors/ Chartered Accountants & 5 years Post Qualification experience for Company Secretary / Architect.
  • Minimum Annual Income (ITR): Rs. 1 Lakh p.a.
  • Business must be profit making for the last 2 years
  • Age of Applicant: Min 25 years & Max. 65 years at the time of loan maturity.

Documents you will need to submit:

  • Qualification proof of the highest professional degree.
  • PAN Card – For Company /Firm/ individual.
  • Proof of your identity: Copy of Aadhaar Card/Passport/Voters ID card/driving license/Pan Card.
  • Proof of your address: Copy of Aadhaar Card/Passport/Voters ID Card/Driving License .
  • Bank Statement (latest 6 months)
  • Latest ITR along with computation of income, Balance sheet and Profit & Loss a/c for the last 2 years. Financial should be CA Certified/Audited.
  • Proof of continuation (ITR/Trade license /Establishment /Sales Tax certificate)
  • Other Mandatory Documents (Sole Prop. Declaration Or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original) Official Link.

Bank of India Doctor’s loan

Purpose

Purchase of equipments, setting up of Clinic, X-ray Lab, Pathological Laboratory, Nursing Home, Poly Clinics etc., clinic-cum-residence, expansion/renovation/modernization of existing premises.

Purchase of vehicles, ambulance, computer etc. for medical practitioner.

Working Capital requirement including stock of medicine /disposables.

Eligibility

  • Individuals/Partnership/Companies/Trusts.
  • Applicants / Promoters should have recognized qualification in any branch of medical science like MBBS /BAMS/BDS/BHMS or any recognized degree in Physiotherapy / Radiology etc and should have minimum practical experience required to establish Hospital/Nursing Home/Clinic.
  • In case Individual, he / she should be a qualified and registered medical practitioner and should have minimum practical experience required to establish Hospital/Nursing Home/Clinic.
  • Partnership – Out of total partners at least 50% should be qualified and registered medical practitioners.
  • Company – At least 50% of the promoter / directors should be qualified and registered medical practitioners.
  • Trusts – Trusts should be registered and having power to borrow. At least one of the trustees should be qualified medical professional and Registered Medical Practitioner.

See Next Slide for more bank loans for Dentists

…See The Next Slide…

Bank of Baroda Loan to Doctors

Bank of Baroda brings to you Baroda Loan to Doctors, a one of its kind, designed specially to cater to the financial needs of the doctors. The advance is available for projects related to setting up / expansion of nursing home / hospital / clinic and pathological lab etc.

Key Benefits

The loan can be availed as a demand / term loan and / or overdraft as per your preference

The loan is available for following purposes:

  • Development of clinic / Clinic-cum-residence, Nursing Home, Pathological Laboratory.
  • Purchase of medical / diagnostic equipments.
  • Setting up of operation theatre.
  • Purchase of office equipments viz. computers, fax, air-conditioners and furniture etc.
  • Purchase of car, ambulance, etc.
  • Expansion/ renovation/ modernization of existing premises/ Clinic/ Nursing Home.

Bank of India Doctor’s loan

Purpose

Purchase of equipments, setting up of Clinic, X-ray Lab, Pathological Laboratory, Nursing Home, Poly Clinics etc., clinic-cum-residence, expansion/renovation/modernization of existing premises.

Purchase of vehicles, ambulance, computer etc. for medical practitioner.

Working Capital requirement including stock of medicine /disposables.

Eligibility

  • Individuals/Partnership/Companies/Trusts.
  • Applicants / Promoters should have recognized qualification in any branch of medical science like MBBS /BAMS/BDS/BHMS or any recognized degree in Physiotherapy / Radiology etc and should have minimum practical experience required to establish Hospital/Nursing Home/Clinic.
  • In case Individual, he / she should be a qualified and registered medical practitioner and should have minimum practical experience required to establish Hospital/Nursing Home/Clinic.
  • Partnership – Out of total partners at least 50% should be qualified and registered medical practitioners.
  • Company – At least 50% of the promoter / directors should be qualified and registered medical practitioners.
  • Trusts – Trusts should be registered and having power to borrow. At least one of the trustees should be qualified medical professional and Registered Medical Practitioner.

See Next Slide for more bank loans for Dentists

…See The Next Slide…

Corporation Bank – Corp Doctor Plus Scheme

  • If you are registered Medical Practitioner /Physiotherapist you can get the loan
  • Interest Rates = 11.65% to 12.40%
  • Loans upto Rs.5 crores. (medical equipment – Rs.2.5 crore maximum)
  • Professionals managing Medical Diagnostic Centers & Testing Labs
  • Third party guarantee is required for loans which are not covered under CGTMSE Scheme.
  • Nil Prepayment charges

PNB SANJEEVANI – Doctors loan

  • Eligible – Qualified Doctors (Allopathic, Unani, Ayurvedic, Homeopathic) & registered practitioners, having minimum qualification: MBBS/ BAMS/ BDS/ BHMS/BUMS, Individuals/ Partnership/ Ltd Liability Partnership/Pvt. Ltd.Co/Ltd.Co/ Trust.
  • Interest Rates starts from 11.85%
  • Minimum loan amount is Rs.1 lakh
  • Maximum loan amount is need based.
  • 7 years maximum repayment period
  • up to 20% waiver in processing fee if applied online

Allahabad Bank Loan Scheme for Doctors/ Medical Practitioners

  • Purpose: purposes for meeting expenses of professional requirement.
  • Eligibility: Individual Doctors & Medical Practitioners. Maximum age: 65 years on date of sanction of loan.
  • Maximum loan amount upto Rs.5 lakh
  • Interest Rates starts from 14.70%
  • Maximum repayment period upto 5 years
  • Processing fees – 1.20% of loan amount, minimum Rs.600/-
  • Prepayment penalty – 2.20% of outstanding balance.

Canara Bank – Doctor’s Choice

  • Purpose: equipment purchase, Setting up of Clinic, X-ray lab, Nursing Home, etc.
  • Eligibility: All qualified registered medical practitioners, established practice / experience of minimum 3 years.
  • Maximum loan amount Rs.10 lakh
  • Repayment options avail upto 7 years
  • Interest Rates = 10.40% to 11.65%

We sincerely hope that this article helped you in your efforts in raising the finance for your dental practice. But once you raise the money, you also need to know how to manage the money. Read this article where experienced dentists have explained How to Manage Money for a success in dental career.




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Now let's see all the bank loan options that are available for a dentist

Loans for Dentists From Central Bank Of India,

SBI Dental Doctor Plus Bank loan,

HDFC Loan for Professionals (including Dentists),

Bank of Baroda Loan to Doctors,

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