One can never expect as when a situation of medical emergency will arise. Moreover, medical costs are nowadays rapidly rising making it difficult to afford. In a medical crisis, you may not be financially prepared. Then what is the way to overcome this situation? The answer is ‘Medical Loan’.
Medical Loan helps to meet the financial need in case of medical emergencies. It is a kind of personal loan which covers the medical expenses such as- medical bills, hospitalization charges, surgeries, tests, post-operation expenses and much more. With medical loans, you don’t have to worry about the finances for the treatment, you can take care of your or your near ones’ health. Moreover, medical loan helps you to get treatment without any delay.
Features and Benefits of Medical Loan
Here are some of the unique features and benefits of medical loans in India-
- Medical loans donot require any security or collateral to keep with the bank.
- Medical loan involves very minimum documentations.
- Use of medical loans in India can be used for covering any medical expenses.
- User-friendly repayment option, i.e, EMI is available.
- Medical loans are quickly approved and disbursed to help you with the medical emergency.
- Loan repayment tenure is between 1 year to 5 years. You can easily repay the loan within this time period.
- Medical loans are also available online which is very time-saving and hassle free.
Medical Loans Eligibility Criteria
Here is the eligibility criteria to apply for medical loans-
- Age– Must range between 21 to 58 years
- Net monthly income– Minimum Rs. 15,000 to Rs. 20,000 (varies according to the banks)
- Type of Employment– Salaried or self-employed
- Employment Status– Minimum 2 years of overall work experience and at least 1 year in the present job or business.
- Credit Score– A good credit score of 750 or above
Documents Required for Medical Loan
Medical loan requires very minimum documents. Let’s have a look at the documents required-
- Medical loan application form
- Passport photographs
- ID proof- PAN card, Aadhaar card, Driving License, Voter ID card
- Proof of address- Passport, Utility bills like- Water bill, Telephone bill, Electricity bill
- Salaried- FORM 16, Salary slip last 3 months
- Self-employed- Profit and Loss Account Statement, copy of IT return
Medical Loan Interest Rate
Medical loan interest rates are usually competitive. Many banks and NBFCs offer medical loans to overcome medical expenses. Some of the popular bank and NBFCs that provides medical loans are- SBI, ICICI, HDFC, Tata Capital and many more. Medical loan offers two kinds of interest rates-
Floating interest rate- It is not fixed and fluctuates over the loan period. Based on the market deficit and prevailing inflation, floating interest rate varies.
Fixed interest rate– It remains fixed throughout the loan period and does not fluctuate because of the market conditions.
How to get the best interest rate on Medical Loan
- Try to pay any existing loan or liability on time to get the best interest rate on the medical loan.
- Try to maintain a good credit history by repaying any previous loan or bills.
- Donot default on any of your due payment. This will build your credit worthiness.
- Never go for multiple loan application with various lending institutions.This will reduce your credit score and will raise a question on your paying credibility.