How To Acquire A Physician Personal Loan [Step-By-Step] In 2024

Are you a doctor looking for a physician personal loan but don’t know where to start? Personal loans may be a good idea to give a quick boost to your savings account.

However, you may also be lost in the amount of details, terms, and paperwork required.

This guide explains everything you need to know before applying for a personal loan.

We’ll examine the required paperwork, credit qualifications, interest rates, and some of the best companies doctors can try.

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Key Takeaways

• Physician personal loans may have a high interest, but they are often paid at a fixed rate, making them a plus for many doctors.
• Your loan intent can determine whether your personal loan application gets accepted.
• If you’re aiming to get a car, we recommend against getting a personal loan and going for a specific car loan instead.

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What Is a Physician Personal Loan?

A physician personal loan is a type of loan specifically designed for physicians and other medical professionals.

It is tailored to the unique financial needs and situations of those working in the medical field.

Physicians’ personal loans are typically small, ranging between $500 and $100,000, and can be paid over a few months, ranging up to seven years.

A physician’s loan is more challenging to acquire compared to a regular credit loan.

However, the interest rate is often lower, and the loan typically uses a fixed rate.

Additionally, there are usually no prepayment penalties.

In most cases, there’s no origination fee as well. However, you should always read the fine print.

How to Get a Physician Personal Loan?

Getting a physician personal loan involves finding a lender, being eligible for the loan, and having the required paperwork required. Here are the steps you should follow:

1. Determine Your Loan Purpose

Among the questions you’ll be asked while applying for a personal loan is: What are you going to use that money for?

Some companies will not approve your loan if you intend to use it for a purpose they don’t appreciate.

For example, Laurel Road won’t approve a personal loan if you use it for educational purposes.

Another company, Splash Financial, doesn’t approve of personal loans for business or auto purchases.

Generally, most companies provide personal loans for major purchases, home improvement, debt consolidation, and moving expenses.

2. Find the Most Suitable Company

Many personal loan companies exist, and some may be more suitable for your needs than others.

Here are some of the most well-known personal loan companies:

SoFi

SoFi offers personal loans with interest rates ranging from 5.74% to 21.28% APR (annual percentage rate).

They provide a maximum loan amount of up to $100,000 for professionals such as physicians.

They also include member benefits like career coaching, financial planning, and networking events.

LightStream

Lightstream is a division of SunTrust Bank and they provide personal loans with interest rates ranging from 6.99% to 25.99% APR.

Much like SoFi, physicians may get a maximum amount of up to $100,000.

Laurel Road

Laurel Road provides personal loans to healthcare professionals with interest rates ranging between 9.74% to 24.25% APR.

As an employed medical resident, you may borrow up to $45,000. Expect lower sums if you don’t have an employment contract (typically around $30,000).

Note: Take your time reviewing fees, requirements, and other factors in the fine print to get the right loan.

For instance, Laurel Road and SoFi have no origination fees. Splash, on the other hand, might have fees up to 8%.

3. Check Your Eligibility

The eligibility criteria may have slight variations between personal loan companies.

However, the core criteria remain the same: having a good credit score (minimum of 580–680) to get credit approval and being a U.S. citizen or permanent resident.

Some lenders may provide reduced loans to H-1B, O-1, or J-1 visa holders. If you are on a J-1 visa, you should go for Doc2Doc.

O-1 or H-1B visa holders may get better chances with Splash.

Note: You may still go ahead and apply for the loan if your credit score is 580 or below, as you are subject to credit approval upon completion of an application, not before.

4. Prepare the Required Paperwork and Apply

This is where getting a personal loan can become a bit tedious.

Besides your personal information, loan companies may require additional paperwork that can be difficult to acquire, including:

• 1-2 years of tax returns
• 1-2 years of business tax returns
• A date profit and loss statement
• Your bank account transactions

Keep in mind that it’s difficult to have all the required paperwork from the get-go.

As such, your best approach would be to apply for your desired company, as getting the offer and the soft credit pull takes only a few minutes, followed by a list of the required paperwork.

From this point onward, it’s all about following the required steps and the monthly payment schedule provided by your loan company of choice.

Frequently Asked Questions

Do You Pay Taxes When You Get a Personal Loan?

No–because the loan needs to be repaid, it’s not considered taxable income, unlike wages or money acquired through investments.

Do Personal Loan Companies Provide Rate Discounts?

Yes, many personal loan companies provide a 0.25% rate discount if you set your payments to automatic.

Is a Personal Loan Suitable for Purchasing a Car?

We don’t recommend that, as your loan request may be rejected. A car loan is a better option if you’re purchasing a car. Not only do you avoid being rejected, but you also often get a lower interest rate.

A Few Extra Words

Physician loans can be a great idea for acquiring a quick sum of money, especially if you’re struggling with your student loan or need some quick personal expenses.

However, the physician loan interest rates may not be attractive, especially if the repayment period is long (often a game of reduced payments vs reduced payment period).

If you’re unsure whether a physician’s personal loan is suitable for you or need an overall consultation about your finances as a physician, Contact us at Physician’s Thrive to avoid any unplanned expenses.

We specialize in financial planning, contract negotiation, managing student loans, as well as disability, life, and malpractice insurance. If you’re a doctor, your financing plan is on us.