A medical emergency doesn’t knock any doors when it strikes. When such an event occurs, you need to get the treatment quickly, which means you would need money to pay the bills. If you don’t have an emergency fund stashed up or your insurance does not cover the treatment, consider taking a personal or medical loan.
5 Reasons to Take a Personal Loan for Medical Emergencies
- Paperless Documentation
Availing a personal loan for medical emergency online doesn’t require any physical documentation. You have to upload the soft copies of the required documents to the website of the lender and apply for the loan. You would need basic documents like identity proof, income certificate and address proof.
- Instant Approval
Online personal loan works with algorithms that give you instant approval for the loan. You need to make sure that you enter the data correctly on the application. When you apply for a personal loan online, you can get the loan approval within a few minutes.
- Fast Cash Disbursal
Thanks to instant loan approval in case of personal loan, the disbursal is also done fast. The amount can be disbursed within a few hours, which makes sure that you don’t have to put the treatment on hold.
- Flexible EMIs
Before you take a personal loan, it would be a good idea to check your EMI with a personal loan EMI calculator. It will give you an idea of the EMI amount and tenure. This will allow you to plan your finances in a better way.
You can select a tenure that works for you. If you choose a long tenure, the EMI amount will be smaller, which will reduce the loan burden. If you want to pay off the loan sooner, choose a shorter tenure. In this case, the EMI amount will be high.
- Convenient Repayments Options
Some hospitals may not accept Credit Cards for payments. When you apply for a personal loan for medical expenses, you will get the funds immediately. You can then withdraw the loan amount and pay the bills in cash, cheque or do an online payment.
Why is a Medical Loan Better Than Insurance?
- Better Usage
You have to pay high premiums for health insurance for a long time even when you don’t use it. Moreover, many medical procedures and surgeries are not covered in the insurance. Instead, take a medical loan whenever you need it for any medical procedure. If you don’t use the entire loan amount, you can use it as savings.
- Lower Interest Rates Compared to Premium
The premiums for medical insurance are really high, which you have to pay in advance. Since medical loans are a new product in the market, their interest rates are competitive and low.
- No Restrictions on Hospitals
When you take health insurance, you have to get the treatment only in partner hospitals. In the case of a medical loan, you can take treatment at a hospital of your choice.
You need to be financially prepared for a medical emergency. When money isn’t an issue, you can focus on getting the treatment done and getting better.
Author bio: Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at shiv@moneytap.com.
