What is Express Loan?
This loan designed exclusively for Doctors is purely an unsecured loan, needing no collateral to be given to the bank.
Since this is unsecured, higher is the risk for the bank & so higher is the interest rate compared to secured loans.
Secondly, these loans are short term loans ranging from 1 to 4 years. The processing time required to disburse this loan is pretty faster, than say a Home Loan or Mortgage loan.
Who can avail this loan?
What are the End Uses of this loan?
- Fund utilization can be for both business as well as personal needs.
- The funds can be utilized for diverse business needs like Clinic/Hospital Expansion, Renovation & purchase of Medical Equipments.
- Individual needs like Marriage, Vacation, Medication, Education, Down payment for Home Loans & other loans (Owner’s Contribution) etc can be covered.
- Many times business loan is availed by borrowers when faced with urgent unplanned financial needs.
Basic Product Features
|Loan amount||Minimum 1 lac to Maximum 30 lacs|
|Tenure||Minimum 1 year to Maximum 5 years|
|Rate of Interest||Ranges between 16% to 22% reducing
Some banks offer subsidized rates for doctors.
For Self Employed
Minimum age 25 to maximum age of 58
Minimum age 25 to maximum age of 65
|Foreclosure charges||These charges vary from bank to bank. Generally in the range of 2 to 4% of Principal outstanding.|
|Processing Fees(PF)||The processing fee varies from bank to bank. There is no upfront PF payable. The PF will be deducted by from the loan amount. Generally it varies between 2 to 3% of loan amount.|
|Stamp duty||Stamp duty is charged for the loan agreement between the borrower & the bank.|
|Insurance||Banks insure the loan by charging a onetime insurance premium which depends on the age & loan amount.|
|Pre-EMI||The banks may ask for a Pre-EMI cheque depending on the date of disbursement & the EMI cycle.|
|Foreclosure charges||Foreclosure charges vary from bank to bank.|
|Documentation charges||Nominal documentation charges may apply which will be communicated at the time of agreement signing|
Banks and Financial Institutions offering Express Loan
Express Loans are offered by selected few Private banks in India. The rate of interest applicable for Doctors is subsidized.
Areas of Operation
The professional consultancy fees applicable will be communicated by a “ Letter of Mandate” which will outline the terms & conditions. The work on the proposal starts once the “Letter of Mandate” is formally accepted by the client.
Loan Documentation Requirements
Click the links below for the list of documents :