With the rising getting medical care is costlier now than ever before. In such cases, your savings or insurance plan may not always be sufficient enough to meet high treatment costs. In such cases, a medical emergency loan may be a viable choice.
A medical emergency loan is a personal loan you can opt for to cover your medical expenses. This credit works similarly to a personal loan, providing you with umpteen benefits, such as:
- Easy approval
- Minimal paperwork
- Simple eligibility criteria
- Near-instant disbursal
Thankfully, advancements in the fintech vertical let you avail anything from a ₹1 Lakh loan or any higher, right from the comfort of your home. To know how you can apply for this loan and understand the benefits of a medical emergency loan, read on.
Helps Get Emergency Funding
With a personal loan, you can get funds instantly using a simple loan application process. You can now apply for a medical emergency loan or any other credit without visiting the lender’s branch.
All you have to do is meet the required eligibility criteria and submit relevant documentation after approval. Once done, you get the funds in your account within a day or two.
While you can get a ₹1 Lakh loan to cover certain emergency expenses, you may also be eligible for higher amounts based on your income and other eligibility parameters. The maximum amount of loan you can get varies from one lender to another.
You can opt for amounts ranging from 50,000 to up to , depending on your requirements. Thus, you need to scout for a lender offering a medical emergency loan amount that best meets your requirements. Most lenders disburse the required funds within 24-48 hours post approval.
Avoids Collateral Risk
Unexpected medical emergencies In such cases, you may even pledge your assets as collateral to accumulate necessary funds. With a medical emergency personal loan, there is no need to stress about arranging cash by pledging your valuable assets.
This is because medical emergency loans are collateral-free loans, so you can get a loan based on your credit score. Ideally, most lenders prefer a score of 750 or above. A credit score of 700 can also get you loan approval, but scores lower than this mark can be problematic.
For instance, if your score is 600 or lower, you may experience delays in approval. Thus, make sure you maintain a healthy credit history to avail a loan without much hassle.
Helps Pay for a Wide Range of Expenses :
With a medical emergency loan, you can cover your pre- and post-hospitalization expenses. This simply means that there are no end-use restrictions on the loan amount. Be it diagnostic check-ups or treatment costs incurred while in the hospital, you can manage them all using a medical emergency loan.
Based on your medical requirements, you can determine whether or not you want a ₹1 Lakh loan or an amount lesser than this. Furthermore, you can use these funds to cover medicine, therapy, and doctor visit fees as well.
You may also use the loan amount to meet domestic expenses, such as food costs, groceries and more. Thus, it is entirely up to you how you want to use the sanctioned amount.
Helps Repay with a Flexible Tenure
When availing a personal loan, you have the option to choose a repayment tenure based on your financial parameters. Generally, with a medical emergency loan, you can get a loan for one year or even four years.
Remember that the longer the tenure, the lower will be your monthly instalments, but your overall borrowing costs on the loan will be high.
Thus, adopt a smart strategy when deciding your tenure to avoid overburdening your finances. Some lenders also offer a Flexi Term loan, wherein you can withdraw your approved sanction as per your requirement.
One of the main advantages of this particular type of medical emergency loan is that you need to pay interest only on the amount withdrawn, and not on the total sanctioned amount.
Keeps Borrowing Costs Affordable
You can avail a personal loan at affordable interest rates, helping you reduce your overall borrowing costs. Thus, during medical emergencies, you can opt for a lender providing lower interest rates. This will help you repay the amount stress free, without affecting your monthly finances.
However, remember that your loan interest rate depends on various factors, such as:
- Tenure you choose
- Your credit score
- Loan amount
- Your monthly income
Research and compare various loan options available in the market before zeroing in on a lender.
Steps to Apply for a Medical Emergency Loan
Here are the steps you can follow to get a medical emergency loan.
- Step 1: Visit your preferred lender’s website after comparing various options
- Step 2: Fill in the required personal details, such as your name, mobile number, etc.
- Step 3: Check for your loan eligibility and submit the required documents post approval
- Step 4: Enter the required loan amount and suitable tenure
- Step 5: Get funds credited to your bank account after the loan disbursement
Remember that before applying for the loan amount, you need to check your eligibility to ensure your loan application will get approved.
Eligibility and Document Requirements
Before applying for a medical emergency loan or any other personal loan, you must meet the minimum eligibility criteria set by a lender. However, note that eligibility parameters may vary from one loan provider to another.
Here’s a list of the typical eligibility criteria you need to meet:
- You must be over 21 years old
- You must be an Indian resident
- You must have a credit score equal to or more than 750
- The minimum monthly salary should be ₹15,000 or more
- You must be employed for at least two years, either salaried or self-employed
Once you meet the criteria for a medical emergency loan, you can proceed with your loan application post approval.
In order to verify your details, the lender may need you to submit KYC documents. Here is the list of documents generally required for a medical emergency loan:
- Aadhaar card
- PAN card
- Voter’s ID
- Proof of income, such as salary slip or bank account statement for the last three months and ITR
- Proof of employment, which includes Form 16 by the employer for salaried and ITR for self-employed
Upon submitting these documents, the loan can get approved within 24-48 hours, and funds are then disbursed to your account.
With a medical emergency loan, you can protect yourself and your family in case of any medical crisis. In addition to quick disbursement, affordable interest rates and flexible tenure options enjoy stress-free borrowing. You can apply through a lender’s website or app to get a ₹1 Lakh loan or more without any hassles.