Doctor loans may get a negative stigma attached to them along with all other loans. Everybody needs some financial assistance now and again and unfortunately mom and dad are not always there to dish out the cash. However, nobody likes the idea of running into debt either. In our current economic circumstance, we are warned to avoid debt like the plague. Generally this is true for frivolous material objects. But a well-designed loan that caters specifically for the medical profession and doctors’ needs can only benefit you. Let us look at some of the benefits that come with a doctor loan.
Doctor loans and fixed/variable interest rates
As a doctor applying for a doctor loan, you will be able to control how you pay your interest rate. What is meant by this is that you may select to pay a fixed interest rate or a variable interest rate. You will have to speak to your specific institution about their individual interest rates but general fixed interest rates can be as low as 7.95% APR. A variable rate can stoop as low as 6.75% APR. Either can be beneficial but you will need to have a look at the Prime rate changes in order to get a feel for how the variable interest rate will trend.
Doctor loans and interest only payment
Interest only payment on a doctor loan is valid for doctors in training who are in a residency or some kind of fellowship training. These interest only payments could be valid up to approximately 48 months of your loan and there is a possibility of renewing this payment option through a second year in practise. Speak to the institution that you are considering getting a loan through about an interest only payment option. They will explain exactly what this entails.
No credit life insurance requirements for a doctor loan
Most of the time when you are applying for loans there are numerous requirements made of you. A favourite one for loans like these is that you have credit life insurance. It can truly be a real pain to get this done if you do not have credit life insurance. There are many institutions that will offer you a legitimate doctor loan without the need for this. If you do have credit life insurance, this is no worry, but if you do not, a doctor loan will not force your hand.
So as you can see, there is not much to be afraid or wary of. These loans can offer you a lot and benefit you more than hinder you. A loan like this could be the start of a successful life after studying, so check out a good doctor loan institution.