When it comes to providing home loans, banks and financial institutions look at several aspects for assessing your ability to repay the borrowed amount. This often includes your credit record, profession, and financial history. In general, doctors have better earning potential compared to other professionals. The history of default rates among doctors is very low. Therefore, most banks and housing finance providers would not hesitate to lend money to doctors.
However, many doctors are not well informed in financial matters as it is not their core competency. Moreover, there is a proliferation of housing finance companies in the market today and it is not at all an easy task to choose the right lender. That’s when the services of loan consultants come in handy for doctors. If you are a medical doctor and looking for a home loan, then a professional loan consultant will be able to not only identify the right lender but also get the best deal for you. Read on to know more about the home loan for doctors and the best loan consultant.
The eligibility criteria and other terms and conditions for home loans can vary between lenders but, in general, they are as follows:
Graduate Doctors (MBBS), Specialists and Super Specialists (MS/MD/DM) – Minimum of three years of post-qualification experience
Dentists (BDS/MDS) – Minimum of five years of post-qualification experience
Ayurveda and Homeopathy Doctors (BHMS/BAMS) – Minimum six years of post-qualification experience; Undergraduate diploma (DHMS) holders should have a minimum of 15 years of post-qualification experience
Banks provide home loans for purchasing new or resale houses or construct new houses to doctors individually or jointly.
Loan Amount and Tenure
Banks decide the loan amount based on several factors such as the cost of the new or built home you are planning to buy, your monthly/annual income, and your current liabilities. Typically, banks advance 75 percent to 85 percent of the cost of the house as a loan. You will have to contribute the remaining amount. In general, the repayment term ranges anywhere from 20 years to 30 years. Further, you can repay the home loan in equated monthly installments or EMIs.
Interest Rates and Charges
Interest rates are charged on the basis of the loan amount and whether you are salaried or self-employed. Typically, there are three slabs: up to Rs. 30 lakhs, between Rs. 30 lakhs and Rs. 75 lakhs and above Rs. 75 lakhs. The interest rate increases marginally as the loan amount increases. In general, it varies from 8.0 percent and 8.5 percent to 9.0 percent and 9.5 percent.
When it comes to charges, you are required to pay a consolidated processing fee, including the fees payable to the advocate and valuer. It would be in the range of 0.4 to 0.5 percent, subject to a minimum and maximum limit.
Finwizz – The Best Loan Consultants In Mumbai and Pune
Finwizz was established in 2005 and the finance professionals at the best loan consultancy and have been helping many customers achieve their dreams. You just have to talk to one of their friendly loan consultants and he/she will provide you with the best solution to meet your needs. Over the years, Finwizz has built strong relationships with some of the top home loan providers in the country.