An unexpected medical emergency can be catastrophic and can take down all your savings in a jiffy. Most of the times, people are not able to get the best of medical treatment for themselves because of the lack of funds. And with medical industry booming and the treatments and medicines touching the sky, one ought to have a pocket full of money if they wish to seek the best medical aid. But what if you don’t have that much saving or you don’t want to lose out the saving on this head. This can be rather stressful as a medical emergency has the ability to make you financially unstable. But with medical loan now available to your rescue, one can be rest assured to avail the best possible treatment without thinking twice about the money.
While a lot of us get medical insurance done for dealing with medical emergencies, but not all of these emergencies are taken care of insurance and they do not pay all your bills. They are usually very hassle-some as they involve lengthy paperwork formalities and are meticulous and time-consuming. Also, during these medical emergencies, one is usually low on time and patience level. When one is burdened with the doctor fees, diagnostic bills and hospital bills, and one gets to know that all that is not covered in the medical insurance, one can be very disappointing and feel helpless. In this time, a medical loan or health loan comes handy.
What are Medical Emergency Loan?
Medical emergency loans are personal loans which are utilised for financing your medical emergency. It has various advantages like:
- Easy Application:
The application process of medical emergency loans is quick and easy. Fintech players like LoansJagat provide an excellent platform where one can compare different lenders offering a medical loan for the best rate of interest and terms and conditions. The application process is simple as it requires to fill an online form with the requisite details about personal and loan requirement. Once this step is through, LoansJagat forwards your application to the chosen bank and then the representative of the bank calls you for verification. Once the verification is done, your loan gets approved and your money is transferred in your bank account.
However, there are some eligibility criteria which one must fulfil to avail a medical loan. One of these is the CIBIL score. A good CIBIL score ensures quick approval.
- No Collateral:
Medical emergency loans come as a blessing in the need of the hour as they are disbursed quickly without the need of any collateral to be kept as a security. This saves additional processing as there is no need for any documentation against assets.
- Hassle-free Payment Process:
Medical loans are available for a long tenure, hence the repayment towards them can be handled easily. The rate of interest is relatively proportional to the loan repayment tenure.
- Provision for Both Short Term and Long Term Medical Ailment:
Health loan gives you the funds to kickstart the treatment right away. Whether it’s a short term treatment or surgery or a long-drawn cure or care post-surgery, a medical emergency loan can be used to meet your expenses requirements as and when incurred. One can opt for monthly repayment option with EMIs which do not act as a burden.
How to Apply for Medical Emergency Loan?
One should meet the eligibility criteria for a medical emergency loan to avail it.
Lender seeks the creditworthiness of the borrower as they are at risk with no collateral being involved. Providing assurance to the lender of the repayment of the loan on time is very important for getting the medical loan approved. Creditworthiness depends on your credit history and your income status. Unpaid credit card bills or delayed payments hamper your creditworthiness and shows you in a negative light in terms of repayment.
- Gathering Information:
It is advisable to be alert and informed about the benefits which health loan provides. Be aware of schemes in the market and always compare before finalising a deal. Get yourself through with the costs and coverage under the medical loan, before starting with the treatment.
- Submission of Documents:
Keep your KYC and financial documents like income certificate ready as the bank would require it. Lenders seek proof of steady income to be sure that you will be able to repay back the loan. Chances of application getting rejected are high if you end of with serious injuries which make unfit to consume your job.
While the sanctioned loan varies from bank to bank, one can get a higher loan with a high CIBIL score and good income. Medical loans are usually offered for a range from one year to five years. Interest rate is also variable from bank to bank ranging from 10.75% to 18% per annum.
Though one cannot suffice without medical insurance, medical emergency loans come as a contingency plan to save you from all the medical expenses at the time of emergencies.