Here’s what you need to know about a medical loan

Medical emergencies can befall anytime. In such situations, the individual does not have any time to waste. Now, it is important to be covered under insurance; however, do note that even insurance policies have certain limitations. If the insurance policy does not cover the current health complication that an individual or their family member is facing, they can always choose to apply for a medical emergency loan to arrange for the required funds.

A lot of financial institutions offer medical loans with simple application procedures so that applicants can easily arrange for the funds in case of a medical emergency. If you are hearing about medical loans for the first time, here’s what you need to know:

Benefits of taking a medical loan

  1. You do not need to provide collateral

This type of a personal loan for a medical emergency is unsecured. It means that borrowers do not need to pledge any collateral to the lender while applying for this loan. This not just makes it easy for the borrower but also helps them complete the loan process sooner since they do not have to provide any documents for collateral.

  1. You can arrange for the funds immediately

While facing a medical emergency, an individual would not have time to visit a bank, wait in a long queue, fill up and submit several documents, and then finally wait for the verification process to get done. With a personal loan for medical emergencies, lenders understand the borrower’s urgency, which is why the procedures of applying for this loan are simple and hassle free. You can get swift approval from a lender when it comes to a medical loan and have the loan amount disbursed quickly.

  1. You can use the medical loan to cover additional expenses

Insurance policies do not cover all kinds of treatments, and this is where a medical loan can be helpful. With the loan amount, you can get financial assistance for medical procedures such as dental surgeries, chemotherapy, or any other expenses not covered by your insurance policy.

Documents required for a medical loan

There are certain documents that you will need to submit to the lender, which are as follows:

  1. Proof of identity
  • Driver’s license
  • Passport
  • PAN
  1. Proof of residence
  • Ration card
  • Voter ID
  • Passport
  • Utility bills
  • Driver’s license
  1. Proof of income
  • Salary slips
  • Recently acknowledged income tax return (for self-employed borrowers)

Eligibility criteria that lenders set for medical loans

Applicants should:

  • Be citizens of India
  • Be in the age bracket of 21-60 years
  • Have been working for at least a year
  • Be earning a monthly income of at least Rs 25,000
  • Have completed graduation

If you are worried about your medical bills, keep in mind that financial institutions offer medical loan that range from Rs 50,000 to Rs 25 lakh. This can help in covering the expenses you are facing, after which you can repay the loan thanks to the flexible repayment tenures that lenders offer.