Doctor Asthana, a renowned Cardiologist from Mumbai had everything in life that she ever wanted: an impeccable practice history spanning more than 20 years, a good reputation in the society, and a comfortable life. There was one dream that remained unfulfilled - doing something for her native place and people. They made it possible for her to achieve her aspirations and become the doctor she is today. She always wanted to start a healthcare facility at her native place, to serve the community she belonged to. She was disappointed with the fact that she couldn't realize her childhood dream because of financial inadequacy.
One day, Mr. Asthana, her husband, suggested the option for doctors loan instead of running around here and there to friends and relatives for help. He had heard about the scheme from a colleague and upon research had understood that his wife was an ideal candidate. Dr. Asthana did as suggested and applied for a doctor loan. Even the lender was very prompt, they sent an email immediately, informing her loan that her application was rejected.
At first, she was very disappointed with the rejection but later she realized her fault. Then, after some time Dr. Asthana re-applied for the loan, this time ensuring zero chances of rejection. As a result, her loan application was accepted immediately and her dream of starting a medical facility in her village was realized.
Now, owing to the example shared above, the mistakes committed by Dr. Asthana are very common and every doctor applying for a loan is prone to repeat them. Hence, before you apply for a doctor loan, take a look below to understand what you should avoid:
Not checking your CIBIL score and credit history
CIBIL score and the credit history that comes along with it are very crucial elements for you and for the lender. The lender uses them to determine your creditworthiness, and the same gives you an idea whether and how much money you can avail as a loan.
Not disclosing your existing debts
Every lender uses debt-burden ratio to determine the repayment capability of an applicant. The same is a little difficult to obtain correctly if the applicant fails or avoids sharing the exact details about the existing loans in their name. In case of Dr. Asthana, she had a home loan in her name which she was repaying all by herself. This resulted in a high debt-burden ratio for Dr. Asthana, making her income insufficient to repay the loan she was about to take.
Avoiding the eligibility terms and conditions
Lastly, some people get too excited and forget to check the eligibility terms specified by the lender before applying for the loan. The same results in rejection of loan application, and a lot of disappointment for the applicant. Therefore, check the eligibility conditions of the scheme beforehand and ensure that you can qualify them.
In the end, to avoid the disappointment that Dr. Asthana had to face, take a good look at the shared mistakes and refrain from committing them while planning to take a doctor loan for yourself.
Read More :- Common Financial Mistakes Doctors Make And How To Remedy Them
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.