For a dentist, the first and foremost requirement for starting a dental clinic is to buy dental equipment. Dental equipments involve the purchase of tooth extraction equipments, tools, lights, a bed and all the other items associated with dental check up. At any given point of time, the doctor will only want the most advanced dental equipment for his dental clinic but this will also involve investing a considerable amount of capital. It is not always possible to finance this large amount by oneself but one can opt for dental equipment finance by approaching a bank or an NBFC like Bajaj Finserv. This financing can happen in the form of dentist loan and it is the best way to raise capital for buying new dental equipment.
● It might seem a lot easier to simply opt for a credit card loan rather than trying to get a dental equipment finance, but it is always a good idea to approach a bank or an NBFC. It is possible to get a loan based exactly on one’s need and there are special provisions for these kinds of loans which come with a whole range of benefits. Moreover, approaching a bank or an NBFC would also mean submitting one’s KYC documents and this would make the process a lot more transparent as well.
● While applying for a dental equipment finance, there is no need for the dentist to have prior working relationship with the lender. In other kinds of loan, one would first have to apply for a credit card even if one does not need it, or have to go to various people and solicit them for crowd-funding. If one does have such contacts or if it is not possible for the dentist to apply for a credit card and he does not want to put up with the charges, then these loans cannot be availed. Whereas making a simple online application is all it takes to obtain a financing for dental equipment.
● It is possible to get higher loan amount while approaching a bank or an NBFC rather than opting for any other medium to get the loan. This is because, buy brand new high tech equipments will definitely not be cheap and it is not possible for friends and family to raise that kind of money. And if one does not have a high credit card limit, then that avenue will not work out as well. To finance a new clinic with all the new dental equipments will require a larger sum which only a bank or an NBFC like Bajaj Finserv will be able to pay you.
● The dental equipment finance would most likely be treated as a doctor loan and the interests are mostly between 14% and 16%. Some credit card companies might want to lure you with lower interests on their credit card loans but there are often hidden charges which come as a big surprise later on. While banks and NBFCs often have charges like processing fees, they will also go through the income details, tenure of the loan, interest paid on insurance and other sources of income to finally fix your EMI.
There can be a world of difference when it comes to the processing charges of the loans. They can range from anywhere between 0 and 2.50% of the total loan amount. The fee could make a considerable difference depending on the loan amount. It is good to approach a financial advisor if one is new at this and they will advise you on the right course of action when it comes to applying for dental equipment loan and chalk out a good repayment plan. Once the dental clinic starts making money, the loan will be paid back just fine.