As a physician, you may find yourself in need of financial assistance at various stages of your career. Medical residents are often in situations where personal loans can help consolidate debt or assist with relocating expenses. In this guide, we cover the benefits of physicians personal loans, outline a few types of personal loans for physicians, and share some best lender companies available in the market.
What is Physician Personal Loan
Physician personal loan, which is much smaller and shorter duration loan compared to the larger loans like mortgages, has these flexibilities. Physician personal loan are primarily designed meaning with respect to medical professionals and hence they do offer more than one benefit associated with them. There are actually low interest rates that go with physician personal loans which happen to be among the chief benefits. In fact, since most credit cards have very high interest rates, physicians may stand to save as much as hundreds of dollars in interest on the life of the loan. In addition, personal loans give an opportunity of making your payments simple by consolidation of the debt into one monthly payment hence easing your life in terms of dealing with finances. Moreover, taking out a personal loan and paying it back responsibly to boost the credit score through reducing credit utilization as well as differentiating of the credit profile.
Common Reasons for Taking Physician Personal Loans
For instance, the personal physician loan can be used for more than a few purposes depending on his needs. Here are five common uses for the physician personal loan:
1. Debt Consolidation
A physician personal loan will enable you to consolidate your debts like credit cards and other outstanding debts at a higher interest, combining them into one monthly payment only. By refinancing your debt to a fixed-rate loan, you can save money on interest and simplify your financial obligations. However, it should be noted that for purposes of student loan refinancing, personal loans may not be that viable for most banks offer more favourable terms for student loans.
2. Relocation costs
More often than not, the physician will have to move for his or her work, and this move may come with substantial expenses such as movers, utilities deposits among other relocation costs. Personal loans can finance this unit when you haven’t accrued a sizable savings yet.
3. Medical Expenses
Even doctors, at times, need medical attention, and medical bills can run up quickly. Personal loans can help avail of late fee penalties before such medical bills are sold to collections. The fast funding turnaround for personal loans allows you to take care of pressing medical expenses sooner rather than later.
4. Major Repairs on Home and Cars
As you advance in your career, major works might crop up that you wish to get done in your house and sudden repair bills as well. An HVAC system, plumbing, electrical issues, even extensive car repairs can all be classified as personal loans. A person can timely deal with such expenditures through a personal loan in order to keep the home and vehicle in good condition.
5. Unexpected Emergencies
Life is full of uncertainties, and no one knows the time when unexpected emergencies may occur to anyone. Personal loans could give temporary financial support in case of accidents or illness or any other reasons why you need to absent yourself from work. However, this should not be used as a long term solution in replacing income. Notably, personal loans should be used together with physician disability insurance to protect your finances in cases of prolonged inability to work.
Types of Personal Loans for Physicians
When considering options between personal loans, these are types of loans that should be known. Below are some common categories:
1. Unsecured Loan
The most common type of the personal loan is referred to as unsecured loans and thus no collateral. Regarding unsecured loans, lenders usually base their decision on credit scores so long as the income. Interest rates felt from unsecured loans prove to be higher than that of secured loans since making such loans poses more risk to the lender.
2. Secured Loans
On the other hand, when a lender has a supply of collateral like borrower’s home, land, or other high-value assets, then that becomes a secured loan. In the case the borrower defaults from paying their borrowed amount, the financed asset should be entitled to seizure by the lender. Because of reduced risk for the lender, secured loans usually provide lower interest rates.
3. Fixed-Rate Loans
Fixed-rate loans have an interest rate that stays constant all through the loan period. In other words, your monthly
installments remain constant due to the coinciding factor, thus stable and predictable.
4. Variable Loans
The only difference unlike fixed loans is that the interest rates for variable loans do not remain constant and tends to change with time following the market rates. Though such start below that of fixed, they rise over time hence affecting your monthly payments.
5. Co-signed Loans
A co-signer, usually a parent or family member, may hold the key to getting you that loan if your credit is a tad iffy. Co-signers assume liability for the loan and may be more apt to fork over the payment if you miss in order to save their own credit.
6. Lines of Credit
Lines of credit offer you a pre-set amount that you may borrow at any time when in need. You would only pay interest on the amount borrowed, which gives much flexibility as a financing method.
7. Peer-to-Peer Loans
Peer to peer loans involve borrowing from fellow physicians sharing similar professional backgrounds. Such types of loans therefore end up attracting favorable interest rates and friendly financing terms due to the fact that they are lent by persons instead of conventional financial institutions.
Best Lending Firms for Physician Personal Loans
In considering the best personal loan for doctors, look at the best lending institutions that are well-reviewed in serving the medical community. Here are some great recommendations:
1. Doc2Doc Lending
Doc2Doc Lending dedicated in fixing doctors’ and dentist financial concerns. They lend personal loans that are being serviced by the Bank of Lake Mills. Doc2Doc lending provides quick approvals and get fixes funds in just a few days with no co-signer needed and as well as fixed interest rates.
2. Panacea Financial
This firm attends strictly to physicians’ banking needs. The available personal loans are fast funding loans which take under 24 hours with no hidden fees, and one does not require a cosigner.
3. Hippo Lending
Hippo Lending offers loans for only medical offices and where one is employed, though not strictly the physician personal loans. It may also consist of practice equipment financing which might come in handy later in case a physician desires to part with some more money for his practice.
Ameris Bank has a department called healthcare banking which offers help to doctors in acquiring loans that are useful to them in financing their requirements. The benefits of the services involve lines of credit, equipment financing as well as involving themselves in construction. Such facilities are important when the doctor starts private practice.
6. HomeTown Bank
PNC Bank offers a special form of Doctor Loan for physicians residing in Florida, Georgia, or Alabama. The line of credit is provided with no origination fees and with the possibility to repay the principal at any time.
6. Ameris Bank
Among the specialized loans that PNC Bank avails for current medical residents is Medical Residency Loan. The loan has no origination or application fee and charged interest rates fixed or variable respectively.
7. Bankers Healthcare Group (BHG)
BHG offers financing options customized for medical practitioners and personal loan programs for home improvement or purchase of a new car or holiday costs. BHG prides in quick response times and access to working with an advisor at any time of the day 24/7 since they understand physicians have exceedingly very little time during regular business hours to make their financial arrangements.
Physician personal loans present professionals in different stages of their career with a useful financial tool. Whether the need is to consolidate debt, relocation monies, or dealing with unforeseen emergencies, physician’s personal loan, unlike most other choices present flexibility and competitive interest rates. You should choose from reputable lending companies that have experience catering to physicians. It is essential to compare rates and terms from more than one lender when making decisions, remember it, read the fine print for making sure understanding fully the terms and conditions of your loan.