5 Common Mistakes Doctors Make with Borrowing Money
There are several reasons why someone might need to borrow money. For doctors, reasons could be:
- A Start-up fund to start practice,
- Buying hospital stocks, rights to practice and clinic needs,
- Medical equipment needed for specialized practice,
- Or other personal stuff like getting married.
But before a doctor should borrow any money, he/she should be aware of these common mistakes to prevent from getting into a Debt trap. Below are the 5 Common Mistakes Doctors make with Borrowing Money:
- Not doing your Goal Setting before Borrowing Money
Before making any financial decisions, one should know his financial goal in each of these decisions. Taking out a loan should also have a basis on why you are borrowing money and how much it is you are borrowing.
- Borrowing beyond your capacity to Pay
Taking on loans with the expectation on paying it off should be calculated based on your capacity to pay. You should be realistic, your loan repayment should not go beyond 36% of your income in a month. If the total of all your loan could mean you are nearing the 36% of your income, that means you can’t take more loans anymore.
- Not checking the terms and conditions of a loan
When borrowing, you should always check the terms that are provided by the lender. Check and see if you can benefit from the rate they are giving you.
- Not having an Emergency Buffer fund (EBF) before borrowing
It’s great to have an emergency buffer fund (EBF) anytime, whether you are borrowing or not. It is a basic financial needs that should not be taken for granted. Ideally, the total EBF you need is 3 to 6 months worth of your monthly expenses. Especially if you are borrowing, having an EBF will help you with your repayments if in case there are unexpected financial emergencies that comes along.
- Borrowing in Not So Reputable Companies
Even if you are taking out a loan, you should protect yourself by only getting loans from reputable companies. Compare rates, benefits and terms and conditions.
If you are a doctor and would want to borrow money from a reputable company, there is a company that gives loan exclusively to doctors. The name of the company is, Global Dominion Financing Inc. Don’t worry, I did a background check on them before I make these recommendations to my readers. Let me tell you who they are and how to get a loan from them. They have this loan program exclusively designed for medical professionals. They call it GDFI Doctor’s Loan.
What is GDFI Doctors’ Loan?
A loan exclusively designed for medical professionals, particularly doctors of any practice.
What are the GDFI Doctor’s Loan Qualifications?
- The Doctor should be in between 25-65 Years Old
- PRC Registered medical professional
- Doctor of Medicine in all specialization
- Doctor of Dental Medicine
- Doctor of Veterinary Medicine
- Doctor of Optometry
What are the GDFI Doctor’s Loan Requirements?
- Filled-out and signed loan application form with ID picture.
- PRC ID or proof of renewal if expired
- Additional Government ID
- Latest 3 months bank statement
- Latest Electric Bill or Water Bill
How much can you borrow?
You can borrow between Php 50,000.00- and as much as Php 1,000,000.00.
How much is the Interest Rate?
The interest rate is 1.75% per month.
For how many months you can pay the loan?
You can pay the loan for 6 months – 18 months.
How long is the processing time of the application?
The approval process can happen in between 4 hours to a day (within 24 hours). The booking process and releasing can take a day. Wow, the processing is very fast compared to banks.
How do you pay for your loan? What if I don’t have PDC (Postdated Checks)?
There is no PDC requirement. Doctors can make a payment through GDFI payment partners.
