Helpful Tips How to get a Doctor’s Loan
Doctors who want to expand their private practice by purchasing new equipment and applying for a new property lease must check out tailored financial products such as the doctor cash loan philippines. This might not be a well-known kind of loan, so read on as it may help you in expanding your practice. Doctors who practice medicine regardless of their specialization which also includes dentists and veterinarians are qualified to secure this kind of loan. Doctor’s Loan or also known as Physician’s Loan is a financial product aimed to address the specific needs of medical professionals in their practice or their personal lives without having to undergo the hassles of meeting the requirements needed for regular loans.
Most hospitals that are accredited by financial institutions only require the doctors to submit their application forms to the Human Resources or Admin for processing. This simple process saves time and energy for the doctor borrower.
Sean Martin D. Plantado, head of customer service for Digido.ph, notes that physician credit in the Philippines is important because it gives physicians a head start in their careers. Without it, many practitioners will not be able to buy the equipment they need.
What documents are required for a physician’s loan?
If you’re a doctor with a private practice, typical requirements for qualifying for a loan are updated PRC ID, three months’ worth of bank statements, one government-issued ID, business and DTI permits for clinic owners, and the most recent and original electric and water bill. There are some loan providers who demand additional requirements.
Doctors who have good or excellent credit standing and are already a resident at an accredited hospital by financial institutions may qualify for a doctor’s loan but sometimes approval is not guaranteed. Loan providers must still determine whether you are creditworthy or not. It is important to improve or maintain a good credit score. Here are some good pointers to consider before applying for a doctor’s loan.
The longer your employment to the same hospital, the better your chances for approval. A residency for at least a year will give you a higher chance for your loan to be approved.
Excellent Credit Report
Some financial institutions keep a record of your credit history and collaborate with loan providers to assist them in determining your creditworthiness. Obtain a copy of your credit report to ensure that all your information and credit history is correct and up to date. The Credit Information Corporation (CIC) is a government-owned company that provides credit reports even to walk-in clients.
Compare Interest Rates and Loan Terms
Loan providers, such as banks and lending firms, have different requirements, methods for determining whether or not an applicant is creditworthy. It also requires different loan interests, terms, and conditions. Thus, make sure to compare their requirements to see if you meet their minimum requirements and which loan package suits you best.
Be Aware of Your Debt-to-Income Ratio
Your debt-income ratio indicates how much of your gross income is being used to pay off debts. Financial institutions want to know if you will be able to repay your loan. Your debt-to-income ratio is a good indicator of your loan approval chances. To determine your debt-to-income ratio, add all of your monthly debt payments together and divide them by your monthly gross income. In general, you should keep your debt-to-income ratio under 40 percent. You may be considered a financial risk if you spend a significant portion of your income on monthly repayments for personal and car loans, as well as credit card obligations.
Make Sure You Are Debt-Free
Clearing your debts with regular, on-time payments will greatly improve your chances of approval because it shows that you are responsible for your money. However, if you have revolving or recurring debt payments, such as credit card bills, you shouldn’t be too concerned if you pay them off in full and on time. If you have any past-due debts, prioritize paying them off first, as these will reflect negatively on your credit report investigation.
Remember these pointers so that you can work on increasing the chances of your loans being approved in the future. Whether you are applying for a doctor’s loan or another type of loan, it is critical to keep a good financial standing as this is the most crucial aspect of getting your loan approved. If your credit standing isn’t up to par, you should get to work on repairing it as soon as possible. Get your finances in order so that you will not have any troubles in getting approved for your next loan.