What are the Advantages of Taking Doctor Loan from SBI?

SBI is one of the leading nationalised banks in the country. Nationalised pre-liberalisation in India, it was named the First Bank and later achieved the status of a government bank. It is completely autonomous and is well adapted to perform various financial services including participating in the stock and bond markets and the credit market. SBI offers a wide range of interest rates on these loans combined with variable terms of repayment. Of special significance or notation is the SBI doctors loan that is granted to individuals, practitioners, medical trusts or corporations engaged in the health care sector. If you are interested in understanding the SBI doctor loan scheme, then read on.

What is a Doctor’s Loan?

Doctor’s loan is essentially granted to people in the healthcare sector or the medical field. It is offered to almost all doctors who have a degree in disciplines like BDS, MBBS, MS, FRCS or homoeopathy. The minimum loan amount offered is Rs. 10 lakh and it can go up to Rs. 5 crores, depending on the business requirements. The main purpose of such a loan is that it helps medical professionals kick-start their practising dreams. 

Also Read: Are digital banks safe in India?

Benefits of the Doctor’s loan from SBI?

The SBI doctors loan system offers you a horde of advantages that make your experience of borrowing hassle-free, while at the same time grants a sufficiently large amount as a principal loan to fund your ambitious ventures. It is pretty flexible when it comes to repayment terms and includes a 45 per cent EMI offer, quite substantial for loan amounts exceeding 10 lakhs. With minimal paperwork and instant transactional work, it is easily one of the best loans up for grabs.

The key benefits of the SBI doctor’s loan are –

  • Boosts your medical practice

SBI doctor’s loan is designed specifically to help you make a fresh start in your field of experience and expertise in medicine and health care with sufficient funds at your disposal. You can use the funds wisely to invest in your prospects in a worthwhile manner and yield interests at minimum opportunity cost.

  • Attractive interest rates

The SBI doctors loan interest rate is quite low compared to other financial intermediaries. In any case, the charges range from 9 to 15% p.a. and along with concessional charges, processing charges and tax deductibles.

  • Processing fee charges

SBI charges probably one of the lowest rates as processing fees on loans. It amounts to around 0.5% of the total loan principal you are seeking. More than 50% of the borrowers qualify for this facility. This means you’ll be charged 0.5% on the total loan amount. As a processing fee only if you exceed the loan amount of 25 lacs. Otherwise, you would have to pay rates according to the CRA only.

  • Multiple Disbursements

SBI also provide facilities for you to take out multiple disbursements for over 24 months. Further, they have provisions for you to take out loans or top up your current existing loans with future period loans, so your dreams don’t get futile if you fall short on funds.

  • Minimum collateral

SBI doctor loan requires no collateral deposit for safekeeping if you take out any loan amount which is less than or equal to 1 crore rupees. However, this has to be guaranteed by the CGTMSE guarantee scheme. Otherwise, the borrower would be required to deposit some tangible security. Usually at least 25% of the loan amount as collateral and a personal guarantee to repay the same.

  • Amount of loan sanctioned

Usually, the SBI doctor loan scheme guarantees a minimum of 55% and a maximum of 70% of the loan amount. For working capitals, there is a sub ceiling (for a maximum of 5 crores rupees) at 10% of the entire loan amount for Rs 1 crore or 5% of the total loan amount for above Rs 1 crore.

  • Speedy disbursement of funds and minimum documentation

They require you to showcase minimum documents to prove your eligibility in taking out the loan. All you need is your medical degree certificate, your current association or source of employment, your bank or income statement and your valid identity proof in the form of Aadhar, Voter or PAN card. 


Sakshi is a Financial Advisor who helps people with investments and help them to get more out of their investment.

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