Everything You Need to Know When Applying for a Doctor’s Loan

Let’s face it. A doctor’s career can be full of challenges, but income is also high. Nonetheless, to reach a level where you earn high income each day, you need to develop a well-equipped clinic and purchase vital medical equipment.

If there’s any lack in the facilities, your patients may not look upon you as a reliable, dependable, and professional doctor.

Is lack of finance stopping your journey as a doctor?

Mikka Montero, a financial journalist from Allthebestloans.com, notes that the coronavirus pandemic taught us the significance of doctors, which is why numerous banks and financial institutes readily provide various types of doctor’s loan Philippines. That means finance will not be a hindrance for you anymore.

However, it will help if you make finance-related decisions after understanding all the ins and outs. Keep reading to learn more about how to avail doctor’s loan Philippines.

What is a Doctor’s Loan?

A doctor’s or physician’s loan is similar to personal loans for regular Filipinos, except for their eligibility conditions. Rather than giving weightage to the existing income when judging the applicant’s repayment capacity, lenders and banks look at their qualifications.

It allows physicians and doctors to avail of a loan of a higher amount. Since this loan has no end-usage restrictions, it can be utilized for personal purposes.

What Documents Do You Need to Apply for a Doctor’s Loan Philippines?

During the initial application and the verification process, you may need to present your lender with a few documents. The following documents are needed along with your doctor’s loan application:

·         Filled out application form

·         Copy of your PRC ID and one government-issued ID

·         Copy of your latest ITR

·         Copy of your latest billing statement

·         Copy of your latest three months’ bank statement

·         Any of the following income documents:

          Patient’s ledger for the past three months

          COE issued by the tertiary hospital

          Latest and original utility bill (water or electricity)

·         Business or DTI permits for clinic owners

How Can Doctor’s Loan Help You?

Applying for a doctor’s loan can help your practice in various ways, such as better work-life balance, better work autonomy, and enhanced financial health, among others.

Also, opening your medical practice can be an exhilarating time. You are bound to unlock many benefits you did not have while working at another clinic or hospital.

Things to Consider Before Applying for a Doctor’s Loan

Applying for a doctor’s loan Philippines can be a tedious process. However, there are loans in the country that are simple to apply for with basic requirements and quick loan approval procedures.

Before signing up for a loan, ponder the following to increase your chances of getting approved.

1.       Consider your debt-to-income ratio

Remember that your debt-to-income ratio compares how much you earn to how much you owe every month. In other words, how much can you pay in monthly installments?

Lenders and banks will always consider the percentage of your average monthly income, which goes to your monthly debt payments.

2.       Pick the shortest term

If possible, it will help if you pick the shortest term when applying for a doctor’s loan. Factor in those long-term loans, as they suggest more interest fees and higher interest rates.

Also, a short-term loan may boost your chances of approval as lenders prefer a shorter payback period, as your financial position is less likely to change during the term.

3.       Strengthen your credit score

Did you know that credit history is one of the main factors banks and lenders consider in whether to reject or approve your loan application. Strengthening your credit score won’t happen overnight, but it is highly possible.

Thus, make sure you pay off past-due credit cards and any remaining loans before applying for a loan. Get a copy of your blank clearance letter and check credit reporting agencies to guarantee that your information is current and accurate.

4.       Apply for a reasonable loan amount

Loan providers in the Philippines have minimum and maximum loan amounts. However, your application will be determined by your credit history and income. Ensure you qualify for a doctor’s loan before submitting any loan application.

5.       Compare fees and look around

Evaluate the loan products of different loan providers to compare their terms and rate. It will also help if you ask the bank’s loan officer about the loan process, fees, requirements, repayment schedules, and charges.

Doing this will allow you to collect all the needed information and choose the best loan product. Loan providers and banks are always eager to help you.

6.       Never skip a payment

Missed payments are synonymous with late payment fees. It will only hurt your credit score and your relationship with the lender. Thus, applying for a new loan will be more challenging in the future.

Start an automatic debt arrangement on your savings account, or you can set a reminder on your smartphone to prevent missing any payments.

7.       Do not apply for too many loans at once

That will notify your loan provider that you are in financial distress, negatively affecting your doctor’s loan Philippines application. That will also mean you have a poor credit history.

Make sure you learn about your available loan options to determine what is appropriate for your needs and situation.

8.       Take heed of the charges

Thoroughly read and check the loan’s terms and conditions, including the charges. Determine if the penalties are too much for you, especially in case of late payments.

Bottom Line

Whether you’re starting your medical practice for the first time or need help funding your business, a doctor’s loan can provide the much-needed capital to help you reach your goals.

It never hurts to have more than one option for financing. Now that you understand the best doctor’s loan Philippines on the market, the only thing left for you to do is assess your circumstance and begin the application process.

Luckily, you should not have difficulty finding an excellent option as a doctor or medical professional. That puts you in the elevated position of selecting and picking the loan that works best for you. We wish you the best of luck in your loan application!  

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