Emergencies can happen anytime, anywhere, and without warning. And when it is a medical emergency, one wants to make every effort to get things under control. But with rocketing healthcare costs, one might find themselves short on funds. This is where the medical emergency loan comes in. These are personal loans to use for medical emergencies. They don’t need collateral, and the disbursals are instant. Medical emergency loans can be used to pay hospitalization bills, surgery costs, medicine expenses, and other treatments.
Features of Medical Emergency Loans
Instead of digging into your savings, simply opt for a loan in difficult times. There are many reasons to take out a personal loan for a medical emergency. Let’s have a detailed look at it.
- No Collateral
One of the top features of loans for medical treatment is that they don’t require any collateral. The loan is given based on your income, repayment capability, and credit score. So, these loans come in handy in times of medical emergencies.
- Flexible Repayment Tenure
The medical emergency loan comes with flexible tenure. There is no pressure to repay the amount immediately. Generally, the tenure is 12 to 60 months. One can choose easy EMI options according to their suitability.
- Quick Approvals and Disbursals
Medical emergencies come without warning. At that time, one looks for funds as quickly as possible. Loans for medical treatment are popular because of their quick approval and disbursals. The loan usually gets approved in less than a week after applying, depending on the credit history. Many lenders do the whole process online. And based on their credit profiles, some lenders even give their customers loans that have already been approved.
- Minimal Documentation
Amidst a medical emergency, the last thing a person wants is a pile of paperwork. The best part about medical emergency loans is that they require minimal documentation. Generally, the only documents a lender asks for are basic identity and address proof, along with income statements or job or business details. Many lenders have a completely online process, which saves a lot of time. Minimal documentation lets one focus solely on the medical emergency.
- Quality Healthcare
The costs of healthcare are always on the rise. Sometimes medical insurance coverage is not enough. A personal loan for medical treatment allows people to receive the best medical care possible.These are additional funds that let you access the hospitals of your choice.
Eligibility Criteria for a Medical Emergency Loan
Lenders understand that a medical emergency is a difficult time. One might need quick financing during these times. Hence, medical emergency loans come with very basic eligibility requirements.
- Applicants should have a salaried job or be self-employed. Some lenders require the applicants to have been employed for at least 2 years, with a minimum of 1 year with their current employer. The minimum work experience required can vary from lender to lender.
- Age bracket of 21 to 65 years. The age bracket may vary a little, depending on the lender.
- Applicants with a credit score of 750 or higher can get a medical emergency loan easily. However, even with a low credit score, one can get a loan, but with higher interest rates.
Required Documents for a Personal Loan for a Medical Emergency
The best part about medical emergency loans is that they require minimal paperwork. Some lenders might ask for some additional documents, like a Form 16 or an ITR with income computation for two years. Otherwise, the generally required documents are listed below.
- Identity proof (Aadhar card, PAN card, driving license, passport, voter ID)
- Address proof (Aadhar card, PAN card, passport, voter ID, electricity bill, telephone bill, driving license)
- Proof of income (tax returns, salary slips, bank statements, etc.)
- Proof of employment
Health is not something to take lightly. So when it comes to healthcare, one wants the best for themselves and their family. Even if there is medical coverage, sometimes that is not enough. Healthcare prices are soaring, and sometimes one can find themselves short of funds. This is exactly why taking a personal loan for medical emergencies is a smart move. It gives the applicant the additional funds they need to get the best treatment available. The process is simple, and disbursals are instant. Not much paperwork is required. Hence, it allows them to solely focus on the emergency.
Head over to Piramal Finance for more such helpful blogs and other finance-related queries.
- What is the process for applying for a medical loan?
One can easily apply for a loan online. Provide the lender with all the basic details and required documents. If the documents are satisfactory, the loan is approved and disbursed in less than a week. The required documents are already mentioned above. Visit Piramal Finance if you have any additional loan questions.
- What is the maximum amount of a medical emergency loan?
The loan amount differs from lender to lender. It can range anywhere from Rs. 25,000 to Rs. 10 lakh and more. A healthy credit profile can help one secure a larger loan at a low interest rate.