What Is A PRN Loan?

PRN loan
  • A PRN loan is a personal loan tailored to medical professionals
  • Fourth-year med students, residents and attendings are eligible
  • Use the money to pay for interviews, exam fees, relocation or anything else – it’s your money, as needed

A PRN personal loan gives you access to money when you need it most. Just as the name suggests, a PRN loan — pro re nata or “as needed” — is designed specifically for medical students and new doctors.

If you’ve chosen to pursue a career in medicine, you’re already well aware of the financial commitments that come with it. The average medical student graduates with $200,000 of debt, and then enters a residency getting paid $57,000. Even when you’ve got residency graduation in sight, you still may have a period before you see that six-figure salary. There’s the cost of things like interviews, board examination fees, life events, and relocation — how can you expect to pay for everything?

The PRN Personal Loan is here to help.

How does a PRN loan work?

A PRN loan is similar to a traditional personal loan. You borrow a fixed amount of money upfront, then repay the loan amount and interest charges over time. It’s an unsecured loan, which means you do not need to provide collateral to receive the money.

The minimum amount you can borrow is $1,000. The maximum amount is based on where you are in your career:

  • Fourth-year medical students: $15,000
  • Residents and fellows: $30,000
  • Attending physicians: $75,000

Once approved, you can choose to receive the money through a checking account or a mailed check, and the money is yours to use immediately. 

Fourth-year medical students

You have two options as a fourth-year medical student:

  • 5-year loan at 7.50% fixed rate 
  • 7-year loan at 8.25% fixed rate

With both loan options, you don’t have to make a payment during the first year. You can also choose to make reduced monthly payments during the next two years.

Residents and fellows

You have three options as a resident or fellow:

  • 3-year loan at 6.75% fixed rate
  • 5-year loan at 7.50% fixed rate
  • 7-year loan at 8.25% fixed rate

With all three options, you can choose to make reduced monthly payments during the first two years of the loan. 

Attending physicians

You have three options as an attending physician:

  • 3-year loan at 6.75% fixed rate
  • 5-year loan at 7.50% fixed rate
  • 7-year loan at 8.25% fixed rate

With all three options, you can choose to make interest-only payments during the first six months of the loan.

Attending giving clinical updates
A PRN loan can help you stay financially independent, save money on interest, and focus on your career goals.

What are the benefits of a PRN loan?

A PRN loan is designed to meet the specific needs of medical students, residents and attendings during a critical time in their careers. It can help you stay financially independent, save money on interest, and focus on your career goals.

No co-signer required

Did you know most banks require a mandatory co-signer on this type of loan? Never mind the fact that you’re an adult who’s invested years into your profession — banks see you as a liability when it comes to lending money.

When you apply for a loan, banks are typically looking at your debt-to-income ratio. If you have $200,000 in student loan debt, but are only earning a $50,000 salary, you’re viewed as a risk. That’s because banks don’t understand what being a medical professional entails.

There are no co-signer requirements for a PRN loan. Your professional progress — making it to your fourth-year of medical school, getting into a residency program, or opening your own practice, for example — is actually a better measurement of your creditworthiness. A PRN loan gives you the benefit of the doubt and the respect you deserve.

No credit requirements

You have high-earning potential as a doctor, but most banks only care about the past two years of your finances when issuing this type of loan. If your credit score is low or non-existent, you can expect to pay a higher interest rate or not qualify at all.

There are no credit requirements for the approval of a PRN loan. If you’re an attending, for example, your credit score is used to determine the maximum amount you can borrow, but it doesn’t affect approval.

Your credit score doesn’t account for your future earnings, which is why your career progress is a better way to assess your credit risk.

Lower interest rates

Wondering if a credit card is a better way to cover your “as needed” expenses? The average credit card interest rate is nearly 20% — yes, that’s with compounding interest.

A PRN loan comes with a simple, fixed interest rate between 6.75% and 8.25%, depending on the terms you select. A fixed interest rate means your interest rate never changes, so you can accurately predict your payments over the life of the loan. Plus, there are no prepayment fees or origination fees.

Reducing your interest rate means more of your money is going to pay off your debt, reducing how much you spend on interest and decreasing how long you’re paying off the loan.

How can I use a PRN loan?

The name is exactly what it means: Your money, as needed. There are numerous examples of doctor’s leveraging a PRN loan in a way that suits their lifestyle.

Many doctors use a PRN loan to consolidate and pay down high-interest credit card debt. Others use the money to pay off medical bills. A few more popular ways to utilize the money include:

  • Medical school interviews
  • Relocation costs
  • Financing a house
  • Board examination fees

A PRN loan makes it easier and more affordable to borrow money, so you can focus on your career.

Is a PRN loan right for me?

A PRN loan is for the doctors and doctors-in-training who need some extra help. 

Surprise expenses happen. It doesn’t matter if you’re a medical student with zero income, a resident with a meager income, or an attending physician with a six-figure income. An unexpected expense can be distracting and add an immeasurable amount of financial stress.

You’re way too busy with your career for the bait-and-switch interest rates offered by traditional banks. A PRN loan is a straightforward loan that gets you the money you need as quickly as possible. There are no fees. No negotiation. No nonsense.

A PRN loan makes borrowing money simple and stress-free — and that lets you focus on your career.

OK, I’m sold. How do I get a PRN loan?

The PRN loan is only available at Panacea Financial. The business was founded by two doctors and built exclusively for medical students, residents and attendings.

Every PRN loan comes with access to a primary care banker who knows your financial needs and goals. They’re trained specifically to understand the evolving needs of a medical professional and, over time, they get to know you and learn to anticipate your needs. Best of all, Panacea Financial offers concierge service 24 hours a day, 7 days a week. You can call, chat or email for personalized service based on your schedule because they work doctor’s hours, not banker’s hours.

Apply for a PRN loan today! The application is free and applying will not hurt your credit score.

Michael Jerkins, MD MEd is the President and Co-Founder of Panacea Financial and is also a practicing physician. He has lectured locally and nationally on physician personal finance, and has been published on student debt associated with medical education.

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