Medical Loan
Medical emergencies arrive without warning and if you don’t have a health insurance plan or an emergency fund, you’re in deep trouble. This is when you look at a medical loan. A medical loan is an unsecured loan just like a personal loan. It can be used for emergency hospitalization like an operation, surgery, day care procedures or a therapy. With a medical loan you don’t need to liquidate FD’s break investments or sell a property.
Things to know on Medical Loan
- The loan amount is disbursed directly to the hospital when you present the surgery bill.
- Banks and NBFCs may approve the medical loan within 3 days.
- Medical loan can be a no cost EMI loan. In a medical loan, the hospital pays the lender, interest on the loan called upfront subvention fee.
- Interest on medical loans depends on income, the company you work for and the city of residence.
- Banks offer medical loans under the unsecured category of personal loans.
- A medical loan can be availed for emergency hospitalization ranging from Rs.15, 000 to Rs.15 lakhs. This covers most medical emergencies.
- A medical loan can have tenure of around 1-5 years.
- Banks charge interest of around 12-20% a year. The processing fees are around 1-2% of the loan amount
- A medical loan does not have hidden charges.
- A medical loan can be used for doctor’s fees, hospital bills or a surgery.
Eligibility criteria for a medical loan
- A salaried, self-employed or even a pensioner who has taken VRS can avail a medical loan provided he/she is an Indian citizen.
- This is an unsecured loan with no need of a collateral or deposit.
- Salaried/Self employed must be between 21-60 years to avail a medical loan.
- You must have work experience of at least 2 years and must be residing in the city for at least a year.
- Banks would look for a minimum salary of Rs.20, 000 a month.
- Banks demand a CIBIL score of at least 650 before sanctioning the medical loan. Some NBFCs check creditworthiness through a psychometric test.
Documents required for a Medical Loan
- Salaried
- Identity proof like Passport, PAN card, Aadhar or a Driving License.
- Address proof like Passport, Voter ID or a Ration card.
- Your birth certificate.
- The last 3 months salary slips.
- Passport sized photographs.
- Form 16.
- Latest 3 months bank statements.
- Appointment letter from the company where you work.
- Self employed
- Proof of qualification like mark sheets and certificates.
- Self employed citizens require office address proof like electricity or a water bill/rent agreement.
- Identity proof like Passport, PAN card, Aadhar or a Driving license.
- Address proof like Passport, Voter ID or a Ration card.
- Your birth certificate.
- Latest 3 months bank statements.
- Audited Balance sheet and ITR of last 3 years.
Benefits of Medical Loans
- You enjoy affordable medical treatment.
- Loans are disbursed real fast within 2-3 days.
- There’s no collateral or deposit required.
- Loans can be repaid in EMIs.
- Minimum documentation and rapid sanctioning of loans.
- Medical loans can be availed online.
- Health insurance plans may not cover all diseases/medical procedures. Medical loans can be availed to cover any medical procedures.
- Health insurance plans have a waiting period before diseases are covered. With medical loans diseases are covered with no waiting period.