In India, the rate of inflation in healthcare is almost two times than in other sectors. Even with health insurance, out-of-pocket expenditures on medical treatments can put many families into dire financial constraints. Unforeseen expenses can disrupt your life savings.
However, instead of liquidating your investments for paying exorbitant medical bills, you can apply for medical loan. This is a type of personal loan wherein you do not have to pledge collateral and can use the proceeds for meeting healthcare costs. If you need information on how to get a medical loan in case of emergencies, here is a brief guide.
Compare interest rates
Several banks and NBFCs offer loans for medical procedures and treatments. The interest charged depends on your job profile, the reputation of the company you work in, your monthly salary, the city you live in, and other such parameters. You can research online and find a lender that offers the most competitive medical loan interest rates.
Check your eligibility
You can find out the loan you are eligible for by visiting the financial institution’s website. Your age, the number of months you have been working in your current organization, your monthly salary and work experience determine whether you can avail of a loan for medical treatment. Try to find the financier with the least stringent eligibility criteria and terms that suit your requirements.
Additional Read:- Easy Tips and Ways to Get a Quick Medical Loan
Determine the EMI
You can use a medical loan calculator on the lender’s website to determine how much you have to pay in equated monthly instalments (EMIs). If you want to lower your EMIs, you can select a longer repayment tenure. It’s always advisable to find out the EMIs for different loan tenures and then decide accordingly.
Prepayment, foreclosure, and other charges
If you want to repay the loan in part or in full, you might be charged for prepayment or foreclosure. Some lenders will allow part payment of the principal amount without charging any extra amount.
The company granting the loan will also ask for some non-refundable fees to process the loan. Moreover, if you delay EMI payments, you will have to pay an additional penalty interest on the overdue amount. You can also be fined if your EMI check bounces due to insufficient funds in your bank account. Find out more about such miscellaneous fees and opt for a lender that charges the least to avoid increasing the overall cost of your loan.
You will need to provide documents in support of your eligibility to avail of a medical loan. These documents include:
- Photo identity proof
- Address proof
- Your latest salary slips and updated bank statements
- A certificate stating the period you have been in continuous paid employment
Additional Read:- Top advantages of taking a medical loan in case of an emergency
Nobody should delay medical treatments for lack of money. If you need money to cover healthcare costs, apply for a personal loan for medical emergency from Tata Capital. Get quick access to funds with instant loan approval and get the best possible treatment at the earliest.