No Cash To Start With?
(How to arrange money for your clinic)
Suppose you have no cash with you. I mean really no cash to start with.
Don’t think and expect your dad will give you money for the clinic.
Also, think you don’t have a place of your own. No dad’s or relatives place. No money from wife’s or husband’s house.
If you have these help, the job gets easier. But I want you to think and plan for the toughest way to make a clinic. That will make you more resourceful and once you have the plan of action to tackle the toughest scenario then any other additional help will propel you to success faster.
SO the biggest Question –
from where should I arrange the Money?
Yes, you guessed it right – Bank Loan. As we told before no money from your parents or any of your relatives.
But which bank loan to take?
From which bank should I take the loan?
How much loan should I take?
Will I be able to pay back the loan?
Your mind will ask you so many questions. But you got to have courage.
Bank loan is the only way you can raise the fund necessary for your clinic. You are just like an entrepreneur who has to raise money from the market for their ventures.
Check out some of the most used loans for dental graduates to start a clinic.
(Here we are are mentioning about the loans available to Indian doctors. If you are based outside India, then do enquire in the banking sectors of your country.)
SBI Dental Doctor Plus Bank loan
Simplified and collateral free bank loan from SBI for registered Dentist who has BDS and above qualification. The details of Dental Doctor Plus of SBI is given below
Eligibility for availing SBI Dental Doctor Plus bank loan
- Individuals / Partnership firms / Ltd. Co / Trust.
- Promoters should have minimum BDS and should be registered practitioners.
Purpose of Dental Doctor Plus
- To boost the financing to Dental equipment under tie-up arrangement.
- To finance qualified dentists
- For buying equipment
- Any other activities related to Dental profession
Nature of facility
Term loan
Margin
- Up to Rs. 25,000 – NIL
- Over Rs. 25,000 and up to Rs. 5 Lakhs – 10%
- Over Rs. 5 Lakhs and up to Rs. 10 lakhs – 20%
Tenure of Loan
- Maximum period of 5 to 10 years with maximum moratorium period of 6 months
- For construction purposes the moratorium period is 12 months (can be relaxed upto 24 months at the discretion of an authority one level higher than the sanctioning authority)
Primary security
Hypothecation of assets financed by the Bank
Collateral security
NIL
Loan amount
Maximum of Rs.10 Lakhs.
SBI Dental Doctor Plus Bank Scheme
SBI Doctor Plus Scheme allows a hassle free financing solution for qualified medical practitioners in any discipline. Although Doctor Plus loan scheme can be opted for all qualified medical practitioners, it is more suitable for freshers who has a entrepreneurial attitude. Here we will find what are the features, eligibility, security, documents required and other things to be considered for availing Doctor Plus Bank Loan offered by State Bank of India.
- For buying medical equipments (For dentists doctors, the loan also covers dental implants besides equipments; for orthopedists, the loan also covers various replacements / implants for hip / knee / shoulder / spine etc.)
- Setting up clinic, X-ray lab, nursing home, pathological lab, drug stores etc.
- For purchase of vehicles, ambulance, computers, etc.
- Expansion / renovation / modernisation of existing premises.
- For marketing exercises, business trips.
- Any other activities related to medical profession.
Eligibility for Doctor Plus Finance Scheme
- Individuals / partnerships / Corporates / Trusts (with powers to borrow)
- Promoters should be registered practitioners and possess minimum qualification such as MBBS / BAMS / GAMS / BDS / BHMS
- Key promoters should be qualified doctors.
Loan Amount offered through SBI Doctor Plus
Maximum of Rs. 5 crores of which a sub ceiling for Working Capital limits at:
- 10% of total loan amount for upto Rs 1 crore
- 5% of total loan amount for above Rs 1 crore
Repayment of SBI Loan for Doctors
- Maximum period up to 7 years
- Maximum moratorium 12 months, except for construction purpose, for which moratorium can be upto 24 months
Primary Security for SBI Doctor Loan
Hypothecation of Assets financed by the Bank.
Collateral Security for SBI Doctor Loan
No need for tangible collateral security for loan amounts upto Rs 15 lakhs for Allopathic professionals and upto Rs 10 lakhs for other professionals (Homeopathic, Ayurvedic, Unani etc)
Above Rs 10/15 lakhs: Tangible *collateral security of at least 25% and Personal guarantee of promoters.
*There is provision for concession on collateral security
Insurance for SBI Doctor Loan
Insurance of assets purchased out of Bank loan and in respect of vehicles, comprehensive insurance as laid down.
Margin of SBI Doctor Loan
- Upto Rs 5 lacs: *10%
- Above Rs 5 lacs: *15%
* There is provision for concession on margin
Interest rates of SBI Doctor Loan
*Interest rate is based on score obtained on simplified credit scoring model
*There is provision for concession on interest rates
Processing Charges for SBI Doctor Loan
0.5% of Loan Amount
Minimum Rs 500; Maximum Rs 50,000
**Sanctioning of loans upto Rs 25 lacs is based on credit scoring model. 50% and above scorers will qualify to avail this facility
***Sanctioning of loans above Rs 25 lacs is based on CRA rating.
Documents required for SBI Doctor Loan
As per SME documentation
Special features of SBI Doctor Loan
- Eligibility as per credit scoring model – Minimum score – 50% for limits upto Rs.25 lacs; For above Rs.25 lacs, CRA model is applicable
- Disbursements can be made in installments over a period of 24 months
-
Half yearly inspection is stipulated
Loans for Dentists From Central Bank Of India
This is exclusively for all dentists who are members of IDA
This does give you some basic ideas. But you might still be confused. And also the bank schemes keep changing every year with new schemes coming. These schemes we mentioned were there in the year 2013 & still continuing. But please do verify with the nearest SBI branch for all the latest schemes and benefits.
Please do notice that – there are private banks also that provide the loans but we chose to mention your the govt. sector banking loans.
So, get out of your house and esquire all the nearest banks and see who is giving you the best loan scheme as per your requirements.
So Let’s Say You Took out a Loan of Around 7 Lakhs.
Now the real work begins.
