5 Financial Tips That Every Doctor Should Know in 2020

India’s healthcare industry, arguably one of the largest contributing sectors to the nation’s economy, is growing at an incredible pace. Experts predict that the medical sector is likely to expand almost three-fold, reaching Rs.8.6 billion-mark by the end of 2022.

India’s cost-competitive facilities and a large pool of skilled medical professionals create a unique competitive advantage in favour of its booming healthcare industry. A combination of private and public entities caters to this growing sector. 

While Government bodies typically focus on providing primary healthcare across the country, private entities mainly concentrate on metropolitan areas as well as Tier-1 and Tier-2 cities.

  • Reports published show that there are approximately 69 thousand public and private hospitals across India.

Investment in India’s healthcare sector is only likely to increase in the upcoming years with an increasing availability of loans and advances at attractive doctor loan interest rates. Such funding options provide a unique opportunity to medical professionals to increase the scope of their practice. 

  • Further, according to recent reports, the Government of India is planning to increase public health spending to almost 2.5% of the nation’s GDP by 2025.

Financing options for healthcare professionals

Doctors can easily capitalise on this growth to expand their reach and offer better treatment to patients, while efficiently managing their personal and professional financial portfolio. Introduction of credits like loans for doctors also helped fuel this growth. The borrower-centric terms of such credits like flexible tenure, affordable doctors’ loan interest rates, etc. allows future practitioners to fund their practice without liquidating their personal savings. 

However, effectively managing one’s finance requires a thorough understanding and detailed planning. There are several factors that can affect the long-term financial health of an individual. It is thus essential to know how to circumnavigate such situations and stay well versed in practices that can help ensure stability of financing for doctors in the future.

Smart financial planning tips for every medical practitioner

1. Avail indemnity insurance

Indemnity insurance plans protect a doctor against any legal financial liability that he or she might incur in case a lawsuit is issued. Such protection is also extended if his/her profession suffers a measurable financial setback due to third-party claim. Doctors should thus care about indemnity insurance coverage as these plans protect them against any losses witnessed if they are sued for negligence, malpractice or mistake.

2. Invest early

Creating a balanced investment portfolio to generate higher returns is a must, and should go hand in hand with regular savings. One can thus park funds in stable instruments to earn assured returns or venture in market-linked instruments for high capital growth. These investments can also act as emergency funds in case an individual is in need of financing for doctors. 

Medical professionals planning to take a loan for doctors but falling short of funding can also liquidate these investments to access instant funds.

3. Manage existing credits

It is of utmost importance to focus on the repayment of any existing debt before opening a new line of credit. Clearing off any existing debt will improve one’s credit score and creditworthiness, while leaving him/her with higher disposable income and improved repayment capacity. 

Doctors might require large scale funding to grow their practice, upgrade their existing equipment, and introduce better patient management technology. If they do not have any on-going debt, they can thus avail customised financing at attractive doctors’ loan interest rate, which will allow them to service smaller monthly obligations conveniently. 

One can also consider debt consolidation to combine multiple lines of credit and repay by paying only one EMI.

4. Maintain sufficient working capital

Maintaining sufficient working capital will help a doctor run a practice smoothly. It will also ensure adequate funding for various recurring expenses, which will otherwise require servicing through a debt available as healthcare financing.

5. Create a retirement corpus

Another important financial tip that every doctor should follow is to start building a retirement corpus early. Saving for the post-retirement period during practice years will ensure zero financial strain or compromise with the quality of life at an advanced age. Retirement corpus can be built solely through savings, alongside utilizing available investment instruments. It will allow a mix of high and low-risk investments for the future.

While these create a fund that can be liquidated at times of extreme emergency, it is better not to utilize them at any point in time unless necessary. To mitigate any monetary requirement, one can avail of a loan for doctors from any financial institution. Reputed lenders like Bajaj Finserv offer such credit at affordable doctors’ loan interest rates, along with flexible repayment options, minimum fees and charges, and several other favorable features and benefits. 

The lender also provides pre-approved offers to existing customers, which simplify the application process and help save time. These offers are available on a range of financial products, which also include personal loans, business loans, and credit cards. You can check your pre-approved offer online by sharing only some essential details online. 

Following such financial tips will help create a reliable financial standing along with readily available financing for doctors, ensuring adequate cash flow prior and post-retirement. Make sure to consider loans for doctors in case of an additional funding need and repay in time, which will ensure efficient fulfilment of funding needs while leaving your savings and investments untouched. 

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