With the rising cost of healthcare services, even the simplest treatment is followed by long diagnostic bills, huge doctor bills, and medical facility fees. Although you can save up for future medical necessities, a medical emergency will require immediate funds. Thankfully, there are various ways to cover such sudden financial requirements.
A medical emergency loan is one of the most preferred ways to tackle such a crisis. Personal loans for medical emergencies can prove beneficial thanks to their custom, borrower-friendly features and relative benefits. It is also one of the fastest ways to avail a large amount of money without any end-user restriction and easy repayment terms.
Which one is the better option?
Choosing between health insurance and a personal loan for medical emergency depends on your requirements. A loan for medical emergency is perfect to tackle immediate necessities of financing. Health insurance is a relatively lengthy process, and it might not cover the complete cost of the treatment.
Advantages of a medical emergency loan
There are several incentives of availing a credit for a medical emergency loan if you require financing on an urgent basis. It carries all the features and benefits of a personal loan, making it a convenient and safe option for anyone who needs monetary backing. Let’s take a look at the various reasons.
1. Easy application process – The application process of availing such loans are straightforward and time-saving. If you meet all the personal loan eligibility criteria, you can apply for the credit online, and your application may be approved within a few minutes. The financial institution may even disburse the money within 24 hours of documents verification.
On the contrary, getting the reimbursement from health insurance can take a significant amount of time. Also, the paperwork for health insurance is significantly time-consuming and meticulous, which can create a lot of hassle during an emergency.
Personal loans for medical emergencies require minimum documentation and come with easy-to-meet eligibility criteria. If you have adequate CIBIL score and are eligible for the credit, you only have to submit papers like your KYC documents, proof of employment, and bank statement to avail the funds. Financial institutions including NBFCs even offer additional deals and offers to decrease the hassle of availing a medical emergency loan.
2. Large sum disbursement – Health insurance might not be adequate to cover all the bills and expenses of a medical emergency. Personal loans for a medical emergency can prove helpful in meeting the financial crunch in such scenarios. Handsome loan amounts of up to Rs. 25 Lakh can help you with most the expenses. It can also supplement the health insurance for covering a chronic illness.
3. Affordable interest rates and other charges – Most financial institutions offer competitive interest rates on personal loans for medical emergencies. You can avail interest rates as low as 12.99% for such advances.
Other fees associated with the loan are also negligible. Lenders might charge up to 3.99% of the loan amount, and only Rs. 50 for loan statement charges. Such affordable interest rates and minimum processing fees ease up the loan repayment process without straining your personal finances.
These are the various reasons why a personal loan for a medical emergency is a more feasible option compared to health insurance. Quick disbursal, low interest rates on personal loans, easy application process, and large sum disbursal can provide the necessary advantage you might need at times of a medical crisis.