How can Self-Employed Doctors Increase their Credit Scores?


India hosts one of the fastest growing private healthcare sectors in the world.  An increasing number of medical professionals today are planning to set up their own healthcare centres and provide better-than-available healthcare services to the common mass.

If you want to initiate your modern medical practice, you can avail a business loan for doctor for the required finances to set up your own clinic.

Basic eligibility criteria

  1. Minimum experience of 2 to 6 years respective to the specialisation.
  2. Credit score above 750.

What is Credit score?

It is important for doctors to know how to increase their Credit score. The CIBIL or credit score portrays creditworthiness, a vital parameter which lenders consider before offering a borrower any sum of funds as an advance.

Your credit score is a reflection of your previous financial history including any missed EMIs, loan defaults, over-usage of credit card limits, and more.

Do note that low credit scores are one of the most common reasons behind rejections of loan requests.

How to increase the Credit score?

Your Credit rating depends on your credit history, which is a summary of your financial transactions and habits. A score which is at least 750 or above can help you avail a business loan for doctors across beneficial terms. Any self-employed doctor in case of a low credit score needs to properly focus on the various factors which affect the credit score.

Following are factors which affect the score:

  • Repaying debts on time

Repaying outstanding debts on time can have a significant effect on the credit score. It is a reason why one needs to maintain accurate discipline and always pay EMIs on time. Delays in the payments can not only force the individual to pay the penalty but also lowers the credit score with every such instance.

  • Ensuring that older credit cards are maintained

Keep your old credit cards operational. If you have any outstanding dues on them, try to repay debts on such long-term accounts. Deactivating such credit cards will render the credit history attached to them unusable. Instead, use these cards responsibly to improve your score.

  • Keeping a check on the credit limit

Credit utilisation ratio affects the credit score significantly. If you are about to avail a business loan for doctors, make sure that you have minimal or zero outstanding credit card dues. Lenders expressly consider your credit card usage if you are about to avail such a loan.

The more an individual can restrict the credit usage according to the slotted limit, the better it is for his/her credit score. It is always advisable to stay below 40% of the available credit limit. Lenders consider such users as creditworthy individuals. In such cases

  • Think before you opt for a tenor

When opting for a loan for doctors, you should choose your tenor wisely as per your current and future financial situations. If you opt for a loan with a long tenor, you will pay lower EMIs but you are liable for a larger total interest on the principal amount at the end of the tenor. Contrarily, with a shorter tenor, the EMIs will be higher but you will end up paying smaller amount as total interest on the loan at the end of the tenor.

As a self-employed doctor, you should keep your credit score high to be eligible for a professional loan. You can use such loans to finance your personal monetary requirements, your existing or new medical practice and more. Know the other ways on how to be eligible for a loan for doctors. Refer to lenders who offer the best loan terms other than competitive interest rates.


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