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.


  • 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.


  • 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 areasMaximum Rs.200.00 lakh, inclusive of working capital (WC) limits upto maximum of Rs.10 lakh, if required.


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



  • 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 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 lakhLoans over Rs.100 lakh
Purchase of equipments, WCMCLR+1.75 % (floating)MCLR+1.75% (floating) on entire loan amount.
Construction of Dental Clinic / Clinic-cum-residenceMCLR+2.00 % (floating)MCLR+2.00 % (floating) on entire loan amount


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.


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

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