Personal Loan For Medical Emergency
Medical emergencies can be a source of immense anxiety particularly if you are caught off-guard.
In such situations, CredMudra’s personal medical loan can help you and your loved ones stay protected regardless of your financial circumstance.
Personal Loan For A Medical Emergency
A medical loan is a form of unsecured personal loan, i.e., collateral-free, that can be used for health-related emergencies or any urgent medical needs or health concerns. This type of credit line provides financial assistance to cover expenses that may arise during various medical emergencies, such as:
Accidents
Dental emergencies
Medical prescription bills
Cosmetic procedures
Prolonged treatments
Hospitalisation bills
Chemotherapy
Surgeries and bypass surgeries
Other similar treatments
Furthermore, there may be medical expenses that insurance policies do not cover. In such cases, a medical loan can be a lifesaver, providing access to financial assistance to help meet the expenses of medical emergencies.
Lenders That Offer Medical Loans
Here is a table listing several prominent financial institutions that provide personal loans for medical emergencies:
It is imperative that you compare personal medical loan offers across various lenders before deciding on which one to finalize, as per your financial needs and requirements.
| Lender | INTEREST RATE (P.A.) | Loan Amount |
|---|---|---|
| State Bank of India | 11% – 15% | ₹1,00,000 – ₹1,00,00,000 |
| ICICI Bank | 10.75% Onwards | ₹50,000 – ₹50,00,000 |
| Tata Capital | 10.5% Onwards | ₹75,000 – ₹25,00,000 |
| Axis Bank | 10.5% Onwards | ₹75,000 – ₹25,00,000 |
| Axis Bank | 11.25% Onwards | ₹50,000 – ₹40,00,000 |
| Fullerton India | 10.49% Onwards | Up to ₹25,00,000 |
| Kotak Mahindra Bank | 11.9% Onwards | ₹50,000 – ₹40,00,000 |
| IDFC First Bank | 10.49% Onwards | ₹20,000 – ₹1,00,00,000 |
| IndusInd Bank | 10.49% Onwards | ₹30,000 – ₹15,00,000 |
| Bajaj Finserv | 11% Onwards | ₹30,000 – ₹15,00,000 |
| Dhani Loans | 11.9% Onwards | ₹1,000 – ₹15,00,000 |
| MoneyTap | 13% – 24% | ₹3,000 – ₹5,00,000 |
Features And Benefits Of A Medical Loan
Mentioned below are 9 key features and benefits of personal medical loans:
Lenders offer easy online application modes for personal medical loans.
Instant loan approval process and fast loan amount disbursement process.
Straightforward and minimal documentation is needed to apply for a medical loan, including proof of identity and address.
Interest is charged only on the loan amount that you use, not on the entire sum.
Withdrawal amounts are available as per your financial needs and requirements, up to the maximum approved limit.
No need to pledge any security or collateral.
Lenders offer flexible loan repayment terms and EMI options.
Being a loan for medical expenses, these funds can be used to finance any and all kinds of unforeseen medical emergencies.
Medical Loan Eligibility Criteria
Following are the typical eligibility criteria for a medical loan:
Citizenship
You should not only be residing in India but also have an Indian citizenship.
Income
You should be earning a minimum income of at least ₹20,000 – ₹30,000 per month.
Age
Your age should range from 21 years old to 58 years old to apply for a medical loan.
Employment Type
You must either be a full-time employee on a monthly salary or a self-employed professional in a business vintage.
Work Experience
You must have a total work experience of 1 year or more. Furthermore, you should be employed in your current firm for 6 months or more.
Factors Affecting Personal Loan EMI
Take a look at these factors that play a significant role in determining your EMI amount:
Repayment Tenure: The loan repayment tenure you choose is inversely proportional to your EMI amount. This means the lower the repayment tenure, the higher the EMI amount, and vice-versa. Thus, you might find that having a longer loan tenure is more convenient. However, interest outgo is higher for a longer loan tenure.
Principal Amount: The principal amount that your lender approves depends on various factors, such as your credit score, repayment history, your relationship with the lender, etc. Also, the higher the principal amount, the higher the EMI. So, make your decisions carefully and within your capabilities.
Rate of Interest The EMI is directly proportional to the interest rate. In the case of personal loans, the rate of interest depends mostly on the borrower's creditworthiness. If your creditworthiness sounds promising to the lender, they will sanction your loan at the lowest rate of interest possible.
Documents Required For A Medical Loan
The documents required to avail of a medical personal loan are provided below:
1) Proof of Identity
- Passport
- Voter ID
- Aadhaar Card
- PAN Card
- Passport-sized photograph
2) Proof of Address
- Voter ID
- Driver’s licence
- PAN card
- Passport
- Aadhaar card
- Ration card
- Electricity/Telephone /Utility bills
3) Proof of Income
- Past 3 months’ salary slips
- Income Tax Return documents
- Form 16
- Recent bank statements
4) Proof of Employment
- Employer issued identity card
- Appointment letter from employer
- Employment certificate
Step-By-Step Process To Apply For A Medical Loan At Credmudra Loan
Here is the stepwise process you need to follow to apply for a personal loan online through Credmudra:
Why Does Taking A Personal Loan For A Medical Emergency Make Sense?
1)
Medical loans can be a low-cost alternative to using credit cards to pay for your medical expenses.
2)
A medical loan can be a life-saving grace when you do not have medical insurance or when your insurance policy does not cover all the expenses.
3)
A medical personal loan can help you budget and control medical costs while providing flexible monthly repayment options over a loan term.
4)
Medical loans can be used to pay for doctor’s fees, hospital stays, medical bills, and surgical procedures immediately.
FAQs On Personal Loan For Medical Emergencies
Can I still obtain a personal medical loan with an average credit score?
Obtaining a personal medical loan with an average credit score will vary depending on the lender’s terms and conditions. It is generally advisable to maintain a credit score above 750 to obtain a reasonable interest rate.
Does the lending institution have any say in determining the type of treatment prescribed?
No, the lending organisation has no say or role in deciding what type of treatment you should be provided with
How is the interest rate and loan repayment tenure determined for a personal medical loan?
The interest rate and loan repayment tenure are determined based on the borrower’s loan requirements, eligibility criteria, and the lender’s terms and conditions.
Is there a waiting period for personal medical loans, as there is with health insurance?
No, unlike health insurance policies, there is no waiting period when availing of a personal medical loan.
Are there any restrictions on the type of treatments that can be funded by medical loans?
No, there are no restrictions on the type of treatments where you can use a medical loan. Thus, medical loans can be used to finance any kind of medical expense.
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