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Should You Take a Business Loan to Fund Your Medical Practice?

By Anujkrpandey    5 / Jan / 2018    In Category Finance


A private medical practice entails various costs - fixed, and operational. Some of the fixed costs include medical equipment, furniture and fixtures. The variable or monthly operational expenses include remuneration, inventory, and utility bills.

Some other costs involve electronic health record software, marketing and others. These financial needs can be financed by a business loan for doctors.

Let’s Explore the Reasons Why You Should Take a Business Loan for Your Medical Practice

You Can Expand Your Practice with A Business Loan for Doctors

It is a challenge for any practising doctor to increase the volume of patients. Health check-up camps in any community is a popular way of market penetration by doctors. Aravind Eye Care System organised weekly camps that attracted large numbers of people. Each camp examined 500-1000 patients. Major costs of camp include manpower, transportation, and equipment. Business loan for doctors can help to absorb these costs.

Business Loan for Doctors Helps to Save Your Cash Reserves

Instead of using your cash for funding equipment or operational costs, you can get a business loan to finance them. It is important to keep positive cash flows. Cash flows are a part of current assets. A successful practice should ensure positive cash flow to meet business expenses.

Flexible Business Loans for Doctors Lets You Borrow as Per Your Need

With flexible business loans you can borrow as much as required, without utilising the whole loan amount. These loans are available in the form of credit line. It means smaller amounts, can be borrowed several times, till the credit line is exhausted.

The interest is applicable only on the utilised amount, which reduces your interest cost. Bajaj Finserv offers business loans for doctors up to Rs. 30 lakh.


For example, a gynecologist may get an approved credit line of Rs. 20 lakh. However, they can borrow lesser amount (say Rs. 12 lakh) to rent equipment related to uterine fibroid embolisation. If required another sum (up to Rs. 8 lakh) can be borrowed for other business expenses, at a later stage.

Flexible Business Loan Keeps Your Interest Low

Bajaj Finserv Business Loan for Doctors helps to keep your equated monthly instalments (EMIs) light, because the EMIs comprise only the interest component. You can repay the principal towards the end of the loan tenor. In comparison to the business term loan, the EMIs are low.


Business Term Loan

Flexible Credit Lineo

Amount in Rs.

20 lakh

20 lakh

Amount Utilized


12 lakh







EMIs in Rs.



This table shows a wide difference between the EMIs of a term loan and a flexible business loan.

Business Loan for Doctors Are Collateral Free

You do not need any guarantee or guarantor to get a business loan for doctors from NBFCs such as Bajaj Finserv. This reduces time and paperwork required for asset evaluation of the pledged property. This accelerates the loan approval period.

You can apply online after reading the eligibility criteria. You can easily borrow, and repay through e-wallet of Bajaj Finserv, and monitor the transactions through customer portal Experia.

Also Read: Which is a Better Financing Option? Doctor Loans or Medical Factoring

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