Importance of personal loan in medical emergency you must know
Medical emergencies are most often unexpected, and they come without any warning. It is very little you can do to be prepared for such emergencies. These emergencies are often costly, as you might be paying a lot for the treatment.
Medical treatment costs often include hospital bills, doctor’s fees, and more. Although having health insurance might help, you might still have to take care of certain things on your own.
If you find yourself in a similar situation, you might have to take a major chunk out of your savings or borrow the money from banks or your known ones.
Taking a personal loan for a medical emergency might be a viable solution, and this is what we will discuss in this article.
Personal Loan for Medical Emergency
If you are short on funds, taking a personal loan for a medical emergency might greatly help you. First, a personal loan for a medical emergency will not force you to spend all your savings in one go. You can pay the loan in small instalments over time.
A personal loan for a medical emergency can be available in a few minutes, provided you have a strong credit score and suitable credentials. This might come as a lifesaver in some instances. It’s because hospitals might refuse to start the treatment until you pay the total amount in advance.
Furthermore, these days, personal loans are available for medical emergencies and are issued mostly by NBFCs and financial institutions. The interest rate for these personal loans for a medical emergency can vary.
Benefits of Taking a Personal Loan for Medical Emergency
There are numerous reasons why taking a personal loan for a medical emergency can be beneficial.
- Instant Fund Transfer
Once your loan is approved, the funds are immediately transferred to your bank account.
The process of applying for a personal loan for medical emergencies is fairly simple. Most applications are approved within a few hours, provided you have the necessary documents & a good credit score.
- No Collateral Requirements
In most cases, availing of a personal loan does not ask you to submit any collateral. It’s a major reason why taking a personal loan in case of a medical emergency helps many people.
No mandatory collateral requirement makes taking a personal loan highly convenient. The process is even simpler if you opt for a personal loan from a financial institution. Piramal Finance offers instant approval & attractive offers for their customers.
- Flexible Repayment Options
Another major advantage of taking a personal loan for a medical emergency is its flexible repayment options. The loan tenure ranges from 12 to 60 months, and you can use EMI calculators to calculate your monthly EMI payments. This feature would help you manage your finances better as you’ll know how much you would need to pay monthly.
This flexibility offered by personal loans allows you to manage your finances much better without forcing you to spend a major chunk out of your savings fund.
- Can be Spent on Different Kinds of Treatments
You can spend the money as per your requirements, and this is where a personal loan might prove to be better than health insurance.
Health insurance sometimes only covers particular diseases and limited medical treatments. If your medical emergency falls out of the areas they cover, you might not receive health insurance benefits.
5. Multi-Purpose Personal Loan for Medical Purposes
There are a lot of financial institutions that provide different loans for different medical purposes. You can get specialized loans for dental procedures, cosmetic surgeries, travel expenses related to medical treatment and more.
How to Select a Personal Loan for Medical Emergency?
One of the major reasons why taking a personal loan for a medical emergency is such a viable option is because hundreds of lenders can loan you the money. However, the terms and conditions of each lender differ, which is why you must compare them against each other so that you can pick a plan that best suits your needs.
Here are some of the factors that you should always consider when selecting a personal loan for medical emergencies:
- Compare the Interest Rate
You must compare the interest rate charged by different load providers. It is so because personal loans are unsecured, and the interest rates can range from 8% to up to 35%. If you are not comparing the interest rates, you might pay more even when there’s a cheaper alternative available.
- Know the Repayment Clause
It’s always essential to go through the terms and conditions of a personal loan before finalising it, especially the repayment clause. The loan should be flexible in terms of repayment, and it should not be a financial burden for you in times to come. Most loan providers allow you to convert your loan into EMIs, and you might also have the option of a lump sum payment.
- Compare the Charges
Whenever you take a personal loan, there might be some fees that you must pay. These charges often include processing fees, prepayment charges, and more. You should always compare these charges as they might significantly add up to the loan amount.
- Online Convenience
In a medical emergency, it might not be feasible for you to leave your loved ones and travel to process your loan application. The personal loan provider should always provide an online payment processing portal, and the entire application process must take place online.
Final Thoughts
One can never be sure when one might face a medical emergency, so having an emergency fund is necessary. However, with the ever-rising prices in the healthcare industry, one might have to look for alternative ways to arrange funds, or they might end up blowing their entire savings.
This is where a personal loan for medical emergencies is useful, as it prevents you from exhausting your savings and lets you take a loan at your convenience and affordability. Financial institutions like Piramal Finance provide you with the facility of availing of personal loans for medical emergencies at affordable interest rates and flexible repayment plans for ease and comfort.