Ever since the Covid-19 pandemic has affected the world, the necessity to have medical funds at one’s disposal has been realised. Treatment costs are soaring sky-high now, and even with a health insurance policy, the out-of-pocket expenses for medical treatments can weigh you down financially.
Here, to deal with heavy medical expenses, you can avail of a low-interest medical loan. Since a high interest rate translates into a bigger loan repayment amount, it is crucial to understand what impacts your medical loan rate before approaching a lending institution.
Read on to understand everything you need to know about interest rates on medical financing.
Interest rates on medical loans
The average interest rate on medical loans can range anywhere from 11% to 24%. However, the rates can differ for each borrower depending on the following factors-
- Your preferred lender’s lending policy
- Your repayment capability and CIBIL score
- Job profile
- The city you live in
- Nature of employment
- Monthly income
- Work experience
Additional Read: How to Improve your Chances of Availing a Medical Loan
How to get low medical loan interest rates?
#1 Fulfil prescribed loan eligibility
Before choosing a lender to apply for a medical loan, check its eligibility criteria and make sure you meet every requirement. If you work for a credible organization and have a stable job, your chances of securing more competitive interest rates are high.
Besides that, the interest rate on your personal loan for medical emergencies will be more attractive if you belong to a high-income bracket. From the lender’s perspective, the higher your income, the lesser are your chances of defaulting on EMIs.
#2 Maintain excellent CIBIL score
Another crucial factor that lenders check before approving your loan is your CIBIL score. Your CIBIL or credit rating depicts your creditworthiness. A score over 750 is considered great. With a high CIBIL score, you can negotiate loan terms and get more attractive personal loan interest rates on medical finance.
Eligibility criteria and documentation
Eligibility conditions can vary from one lending institution to another. However, to avail of medical finance with Tata Capital, you must meet the following conditions-
- You should be a salaried person with a monthly income of Rs. 20,000 or more
- You should be aged 21-58 years
- You need at least one year of work experience
- You should have been with your present organisation for a minimum of six months
After fulfiling the eligibility criteria, gather all the documents required. Following are the documents lenders usually request:
- Photo identity proof – A copy of your driving license/voter ID/passport / Aadhar card
- Income proof – a copy of your last 6 months’ bank statements
- Employment certificate showcasing 1 year of continuous employment
- Your address proof – electricity bills, ration card, or passport
- A copy of your salary slips for the last 3 months.
Additional Read: Here Are the Things You Should Know While Applying for a Medical Loan
To sum up
Looking for funds to finance a medical emergency? Tata Capital has you covered. Avail of collateral-free medical financing at flexible tenures with us. Use our personal loan EMI calculator and compute your instalments payable and apply now.