Medical emergencies come unannounced. A Health Insurance covers you and empowers you to financially deal with rising medical costs. Many people still do not pay much attention to this and do not plan their finances in advance to deal with medical emergencies. Also, not everyone can afford Health Insurance that can provide them complete protection during medical uncertainties. This is where medical loans come handy. Like personal loans, medical loans are also unsecured. The interest and tenure of a medical loan is flexible, depending on a customer’s loan needs and eligibility criteria. These medical loans can be utilised to pay for expenses like hospitalisation bills, medical prescription bills, surgeries such as angioplasty chemotherapy and others similar treatments.
Eligibility For Availing A Medical Loan
You need to be a working or self-employed Indian citizen to avail this loan. There is no minimum salary requirement for availing this loan and no deposits are needed. You can get loan upto Rs 25 lakh based on your Credit Score of 750 and above.
Features Of Medical Loans
With Personal Loans disbursed at an average of 18-24%, medical loans are more pocket friendly and have their benefits over personal loans.
Once sanctioned medical loans are disbursed on priority and directly to the hospital to ensure the treatment is carried out immediately, thus ruling out any misuse. A personal loan whereas is credited directly to the applicant’s account, which increases the chances of it being used for purposes other than medical treatment.
Benefits Over Health Insurance
You can make use of medical loans to cover for treatments that are not covered under your health insurance. This means that any complications arising due to a preexisting disease, and not covered by your health insurance can be paid using a medical loan. As in the case of health insurance for certain diseases, there is no waiting period and the loan is granted immediately.
Availability on no cost EMI
Banks and NBFCs are also offering a no cost EMI option where the borrower has to pay two month’s EMI upfront while the balance amount is paid in 10 installments. The interest cost is borne by the hospital trough subvention fee.
Some Disadvantages Of Medical Loans
When paying in cash or from your own pocket you can save on some expenses by bargaining with the hospital. Usually most hospitals offer cash discounts for patients paying upfront. If taking a medical loan option, the hospital may not consider requests for any such discounts thus increasing the overall cost of treatment.
Processing Fee And Onetime Costs
All medical loans come with a processing fee as well as onetime cost that can easily amount to 2-3% of the loan. While you may overlook the fee in the event of a financial emergency, the charges can add up to be a substantial amount in itself.
A medical loan can be a great asset in a medical emergency but should be taken only after understanding of the loan terms and conditions in totality and as a last resort option.