Medical contingencies never knock at your door to enter your life. As they make their entrance unannounced, thus you must be prepared for them from the very beginning i.e., as soon as you begin earning by opting for health insurance. However, there are many who avoid availing insurance and consider it a distant goal. If you are one of those, you may avail a medical loan to meet medical emergencies. Availing a medical emergency loan is the next prudent way to meet the cost arising out of an unexpected health complication.
What is a Medical Emergency Loan?
Medical emergency loan is a variant of personal loan for medical emergency. This personal loan provides financial coverage against expenditures that you may incur in the occasion of any medical exigency. Like personal loan, medical loan too has the same features i.e., no security requirement, quick disbursal, and simple online accessibility. Also, lenders prefer approving your medical loan if you have a good repayment history and strong credit score. However, with respect to usage purpose while personal loans come with no usage restriction, medical loans can only be used for meeting medical emergencies.
Here are Some of the Top Benefits of Availing Medical Loan
Zero Security Requirement
Medical loan is an unsecured loan that does not need any security or collateral. Lenders approve medical loan based upon your credit profile, past repayment history, income, and various other factors. Thus, you do not need to block your existing assets to avail medical loans from the lender, keeping such investments free for other uses.
Quick Approval and Loan Proceed Disbursal
Financial institutions understand your urgency and hence try to disburse the personal loan for medical emergencies as soon as possible. Many also provide a pre-approved version of medical loan, which takes just a day for disbursal.
Flexible Repayment Tenure
Medical emergency loans do not require lump sum repayments. Such loans come with extended tenure of as high as 5 years with few lenders willing to offer a higher tenure of up to 7 years. This allows you to plan your EMI as per your finances and repayment capacity.
Credit score is an important factor that determines your medical loan rate. A higher score usually means lower interest rate and vice versa. Apart from this, also note that interest rates differ from lender to lender which may range anywhere between 8.90% and 24% p.a. In simpler words, interest rates charged by a lender to an applicant may not be the same for the same applicant on approaching another lender. Thus, striking a comparison among lenders based on rates and various other charges are crucial before choosing any lender.
With such benefits on offer, opting for a medical loan can indeed serve as a life saver. However, you must ensure to take up just the required amount through loan. After all, this is a financial obligation that requires to be paid back along with interest. For calculating your EMI before availing a loan, you may use a personal loan calculator, which takes into account your loan amount, interest rate and loan tenure to calculate your EMI.