An emergency may come in any form and from any side. And it always comes without any warning. A wise person is one who stays financially prepared for emergencies more than anything else. But ascertaining the financial implication of an emergency is often beyond our control. This is where medical loans come into the picture. A medical loan is a type of personal loan especially suited for meeting emergency medical obligations.
Read this article to find out how a personal loan can take care of your emergency expenses and the documents required for availing a personal loan.
Why Should You Apply For a Personal Loan For Managing Medical Expenses?
Personal loans, of which medical loans are a part, offer a host of attractive features that make them the preferred choice with Indian borrowers. Instant online approval, quick disbursal of funds, low rate of interest, high loan amount, long tenure, and no-collateral guarantee make personal loans so popular with borrowers. Moreover, the documents required for applying for a personal loan are fewer than many other types of loans.
What is the Best Way to Use a Personal Loan?
Personal loans are of various types, such as wedding loan, medical loan, women loan, holiday loan, elite loan, salaried loan, self-employed loan, doctor loan, travel loan and others.
As various reputed lenders provide instant online approval of personal loans, you can choose any type of loan for managing emergency expenses. However, when it is about emergencies, borrowers prefer personal loan for medical emergency over other types of loans. The reason is for its popularity is the lowest interest rate and instant approval of the loan.
How Can You Extract the Maximum Benefits Out of a Personal Loan?
- Choose the Right Loan Amount
The amount you are eligible to get on a personal loan, especially a medical loan, depends on your eligibility. A few factors that determine your loan eligibility include the credit score, existing debt, monthly income, liabilities, fixed expenses, nature of income and its stability, and loan term.
Generally, you can get funds of up to INR 25 lakh. However, you should always think from a long-term perspective to determine the right amount for you. Clearing off your debt earlier can make you eligible to apply for a fresh loan.
- Compare Interest Rates
A few years ago, borrowers had to pay more than the prevailing market rate for availing an emergency personal loan like a medical loan. Moreover, the documents required for availing instant personal loans were usually more than the normal requirements. Not anymore, as reputed lenders give you the same interest rate irrespective of your urgency.
Modern technology has made it easier to browse lenders’ websites and check who is offering the best rates. Make sure you do not compromise with the service quality for a few percentage points discount in the interest rates. Medical loan interest rates start from 12.99% at present.
- Choose the Tenure Properly
Generally, Indian lenders allow you a tenure of up to 60 months for repaying the medical loan principal along with interest. You may use an EMI calculator to check how much you have to pay every month.
While an EMI calculator may give you some idea about your monthly outflow, you may change the tenure and see how much it costs to clear off the loan earlier, even if that requires you to increase the monthly amount.
- Read the Terms and Conditions Before Entering Into an Agreement
Before signing the documents required for availing a personal loan, you should check if anything is hidden. Prepare a list of questions that you may ask the lender beforehand. As lenders become more borrower-friendly, they are laying bare their secrets before everyone, empowering borrowers to make informed decisions.
For example various financial institutions have no hidden terms, and however much you need to know can be found on its website, no strings attached.
- Keep the Documents Handy
The best part of an instant personal loan is its minimum documentation. All you need to keep ready are age, address, and identity proof, income statement, educational certificates, bank statement, and application form.
While any health emergency comes without any warning, a medical loan can make you stay prepared to tackle the crisis. But before applying for the loan you must check the best features, interest rate, eligibility criteria and EMI payment option and choose the best one which suits you.