It will be a dream of any professional to start their own business. A significant roadblock in the path will be a financial shortage for investments. It is where a professional loan comes into the picture. For example, a doctor who wishes to start their practice will need money for initial expenses. Here a doctor loan comes to the rescue for these purposes without delay. So, these loans are specifically meant for professionals to expand their business. It can be availed by doctors, engineers, lawyers, chartered accountants, etc. Almost all loan providers facilitate professional loans. Let us look at the criteria for professional loan eligibility.
Who are all eligible for applying for professional loans?
Doctors: A loan for setting up a clinic or consultancy can be availed through a professional loan for a practising doctor. It is known as a doctor loan.
Professionals: Any other professionals can avail of a professional loan. It includes engineers, chartered accountants, architects, company secretaries, etc.
Firms: Any existing consultancy or company can apply for expansion for professional loans.
Anybody falling into the category mentioned above has professional loan eligibility.
Now let us look into a few prerequisites mandatory for applying for professional loans.
Professional Degree: This is mandatory for any professional loan. The loan falls into a category meant only for professionals. Hence it cannot be diverted to people from any other line of work. The loan applicant should hold a professional degree certificate at the time of the loan application. As mentioned above, a loan for setting up a clinic can be availed by a doctor. The loan is available for them as they are eligible by their professional category. The same is the case with any other working professionals.
Must be a citizen of India: Only Indian citizenship holders can apply for these loans. This loan and its benefits are directed to Indian citizens alone.
Age limit: There must be an age limit for professional loan eligibility. The loan is eligible for people between the age group of 22 years and 62 years. Anyone above or below this age bracket is not suitable for a loan. It is a standard age constraint set by almost all lenders for all loan categories, with slight variations.
Work experience and monthly income: There is a minimum of one year of work experience criteria for applying for this loan. This ensures that the applicant has a minimum understanding of the field they are getting into. The bank must make sure that their money is in safe hands. Professional loan eligibility criteria mandate minimum annual receipts of ₹25,000 for the applicant. It is required to prove the applicant’s ability to repay the loan after availing.
Documentation: A set of documents is required while applying for the loan. The following consists of the significant lists.
Proof documents: Three sets of records fall into this section. They are:
- Pan Card: This is the financial identity of the applicant. A Pan card is mandatory for a loan.
- ID Proof: This includes any of the identity proving documents of the applicant. It is necessary to take forward the application without delay.
- Address Proof: Proof of address will have to be furnished by the applicant to avail of the loan.
Income Documents: This includes the following documents to be used:
- Income Tax returns: The applicant must furnish the IT returns for the past two years. The loan provider will cross-check this data to ensure the loan repayment ability of the applicant.
- Pay Slips: The applicant should furnish three months’ pay slips if they are a salaried employee. If they are self-employed, they must provide income proof while forwarding the application.
- Bank account statement: Six months bank statement is needed while applying for the loan.
All the income documents mentioned above will serve as a consolidated verification for the applicant. Hence, all three above documents are needed to avail of the loan.
There are many possible loan options available to everyone. However, this loan is tailor-made for their financial needs when it comes to professionals. Hence it will be best suited to cover all the areas of expenses if availed. To set up a consultation clinic, a doctor can take a doctor’s loan. The loan will cover all the expense categories needed for him. The applicant has to check the professional loan eligibility and, if eligible, forward the application. The loan will be disbursed in a minimum time with minimal documentation. It makes this one of the best-fit loan options for ambitious professionals.