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.