While many of us tend to look at doctors as near-infallible beings, we forget that they’re just like us in many ways. Despite their advanced training, doctors are still humans, and you’ll be surprised at the kinds of mistakes doctors make when borrowing money.
Here are a few mistakes for every medico to watch out for when applying for doctor loans in India:
One of the classic mistakes that doctors make during loan procurement is taking loans without researching the market. You make so many rounds in the hospital, from one patient to another. Would it hurt to do the same for loans?
And even if a doctor spends some time looking for the right doctor loan, they often fail to pick a skilled banker to get the loan from. Picking the right banker to explain the loan terms and policies is like picking the right anaesthetic or surgeon while going in for an operation—you need to ensure there aren’t any slip ups.
Watch What You Spend on
Another common error is taking loans for the wrong investments. For example, taking a loan to pay recurring expenses like the salaries of your employees is a bad idea. Instead, this situation could be fixed by implementing stricter budgeting procedures.
Similarly, if you want to replace a particular piece of equipment, consider taking a smaller loan aimed at fixing your existing infrastructure—a potentially more inexpensive option compared to replacing the entire machine.
Many doctors invest in the establishment of a medical centre, or a hospital, after taking a doctor loan jointly. But you might have to consider the termination of such partnerships in the future. What will you do then? The entirety of the loan repayment might fall on your shoulders and you might struggle to pay even the interest.
One of the most common mistakes physicians make while taking a loan is forgetting about the doctor loan interest rates which will be levied. In India, the rate of interest payable on a doctor loan starts from 10%, depending on the lender and the amount borrowed.
Being a doctor requires you to save other lives, but that doesn’t mean you have to neglect yours especially when it comes to financial safety.