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Personal Loan For Medical Emergency

An unexpected emergency can hit you in more ways than one, out of which, the most catastrophic is a medical emergency. Taking a personal loan for medical emergencies ensures you do not face financial imbalance. Most of the times, medical expenses are over the head and can literally drain you of your money. The best way to deal with this situation is to take a personal loan which can be availed with very little hassle.

Some medical emergencies can be taken care of by your medical insurance, however it cannot pay all your bills. Also, paperwork for medical insurance is time taking and meticulous and at the time of emergencies, we are usually short of time and patience. When you are burdened with all the medical, diagnostic bills and doctor fees, it may be disappointing to know that your medical insurance alone will not cover all of that. This is the time that you could utilise a personal loan for medical emergency.

Advantages of Personal Loan for Medical Emergency:

Some of the advantages of taking a personal loan for medical emergency are:

  • Easy Application:

    The application process for personal loans for medical emergencies is pretty straight-forward and easy. You can avail such a loan online by registering through the bank’s official portal. You are required to enter all your details on the website and once this is complete, the next step is approval from the bank. The lender or the banks takes a maximum of up to 24 hours. However, there are certain eligibility criteria that you must fulfil in order to avail a personal loan for medical expenses. It is advisable to verify your CIBIL score along with other criteria in advance in order to avoid being rejected by the bank.

  • No Collateral:

    Personal loan for medical expenses that is taken on time can prove to be beneficial as it is unsecured ad you are not required to provide any asset as collateral towards the loan. This saves you from the additional trouble of providing documents of your assets to the lender.

  • Hassle-free Payment Process:

    Repayment towards personal loans for medical emergencies are easy to handle as the loan tenure is adequately long. The interest rate is relatively proportional to the loan repayment tenure provided by the bank.

  • Provision for Both Short Term and Long Term Medical Ailment:

    Whether it’s a short term treatment or surgery or a long-drawn cure or care post-surgery, you can avail a personal loan for medical treatment. The loan can help you make the initial payment to start the treatment right away, while you can continue to pay for the expenses as and when incurred. Loan repayment is easy to handle as it can be opted to be paid in monthly instalments.

Special Personal Loans for Medical Expenses

Apart from general medical expenses, some banks and lenders offer specialised personal loans to cover your medical costs. Some of them are:

  • Loans for Dental Procedures:

    You can avail a personal loan for paying for dental procedures such as surgery, braces or any kind of teeth reconstruction. Some dental procedures are considered to be elective procedures, however the personal loan covers both elective procedures as well as small surgeries.

  • Loans for Cosmetic Surgery:

    Elective procedures such as breast reductions, liposuction, nose jobs or implants can also be funded by personal loans. As these kind of procedures usually cost a lot, a personal loan is the best bet to cover expenses.

  • Loans for Medical Expenses during Travel:

    If you are travelling abroad, you can avail a personal loan for getting a medical check-up at a medical centre or hospital for any surgery or special treatment. Banks provide customised personal loans for such cases.

Process of Applying for Personal Loan for Medical Emergency

Some of the important things to remember while applying for a personal loan for medical emergency are:

  • Credit-worthiness:

    One of the most crucial steps in acquiring a personal loan is to be credit-worthy and proving to the lender. Providing assurance to the lender for the loan repayment is considered to be very important in being able to get an approval from the bank for the personal loan. Your credit-worthiness depends on your credit history as well as income. Unpaid bills and delayed payments in your credit history can reflect poorly and have a negative effect in the process of availing a loan for medical emergency.

  • Gathering Information:

    It is always a good idea to stay informed in advance. By contacting a reputed financial institution and finding out about the benefits availed in the loan and comparing with other schemes in the market, may help in zeroing in on a good deal. It is advisable to know about all costs and the coverage under your personal loan, before entering treatment or going under the knife.

  • Submission of Documents:

    It is very important that you have all the required documents needed by the lender, in place. Proof of your steady income should be provided to the bank for availing a loan. If you are applying for a personal loan for a major surgery with a long recovery time, your income may decrease depending on disability benefits offered by your employer. Also, if you end up sustaining injuries that may make you unfit for your job, your loan application could be rejected.

Most banks require you to submit the following documents:

  • Identity proof such as Voter’s ID, Driving Licence, Passport, etc.
  • Address proof such as Telephone Bill, Electricity Bill, Passport, Rental Agreement etc.
  • Last three months bank statements or six months bank passbook.
  • Most recent salary slip or Salary Certificate with the latest Form 16.

Some of the banks such as ICICI Bank and Kotak Bank offer a maximum personal loan of Rs.20 lakh, while HDFC and Axis Bank provide personal loans of up to Rs.15 lakh for medical emergencies. Loan tenures for these personal loans range from one year to five years. Interest rates on these loans can be availed at rates as low as 12.70% to 24%.

Although medical insurance is a necessity in today’s age, personal loans for medical emergencies serves as a contingency plan. Medical expenses at the time of emergencies seem endless and it is a good idea to be informed about more ways than one to handle such situations.

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