Could a Personal Loan Be Your Ticket to Paying Off Medical Debt?

Medicine and healthcare costs can be expenses that several individuals need to bear at some point in their life. Moreover, not having a life insurance can lead to financial burden. Even a health insurance may not be enough at times, to cover the vast expenses that medical treatments entail.

Furthermore, there are several non-covered charges, such as premium costs, various diagnosis costs, deductibles, etc., that might add up to a high amount pushing you towards financial debt. In such a case getting a personal loan could be a fair option. Keep reading to learn how.

Reason for Choosing Personal Loans for Medical Expenses

The benefit of applying for a personal loan is that you can borrow a decent amount of money for any reason. Using the personal loan, you can renovate your home, start a small business or get your car fixed. Apart from these, you can also use personal credit to meet your medical expenses. Moreover, these are primarily collateral-free credits, which reduces the risk of losing valuable assets.

If you have numerous medical bills, it may become difficult to keep track of their due dates. In this regard, a personal loan will give you the freedom to plan your medical treatments and manage finances simultaneously.

Where Can You Opt for a Personal Loan

You can find several financial institutions offering personal loans of high amounts at competitive rates. You can check out the traditional lenders and online NBFCs to compare the offers. In addition, there are several online markets offering personal loans from different loans at low-interest rates.

Personal loans provide as high as Rs 25 Lakhs, enough to cover a full or significant portion of your medical expenses. However, before choosing any lender make sure their offers align with your requirements in terms of credit amount, tenure, interest rates, eligibility, etc.

Advantages of Opting for a Personal Loan

Unlike secured loans, personal loans are easier and quicker to secure and offer wide-ranging benefits. Here are some of the following:

• Collateral-free loans

You can secure personal loans without depositing any collateral. If you have a good credit history, it will be easier to procure a substantial amount from your personal loans. It is a favourable option in case you have a high medical expense. However, your eligibility depends on your credit score and creditworthiness. Therefore, having a good repayment history will benefit you further.

• Low application processing time

With the availability of various online lenders, you can expect a quick application processing time. Online transactions are safe and fast and also require minimal documentation. Many lenders also offer pre-approved personal loans to eligible/existing borrowers. Therefore, if you need financial security within a short period, a personal loan plan can be highly beneficial.

• Flexible tenure

There are many lenders who offer extended tenure on personal loans from 12 to 60 months. Therefore, if you are worried about the debt burden, then select a lender that gives you the best repayment extension.

• Covers different types of treatment

A personal loan gives you the freedom to use the money for different types of necessities. For instance, you can pay medical bills, cover surgical expenses or the whole treatment process. Therefore, you can opt for the best possible treatment available without holding back due to monetary issues. Most personal loans cover hospitalisation, chemotherapy, surgery and other costly procedures.

Eligibility Criteria of Personal Loans for Medical Emergency

In order to apply, you must check the following eligibility criteria for a personal loan:

• You should be a salaried applicant.
• The age range to apply for a personal loan is 21 to 60 years.
• You must be employed at a private company or a public undertaking.
• You must either show a good credit score or meet the minimum salary requirement of the lender.

However, eligibility criteria may vary for different lenders. Therefore, compare and select the one that best fits your profile.

Documents Necessary for a Personal Loan

A personal loan requires fewer sets of documents. However, some of the essential ones include the following:

• Valid Identity Proof such as an Aadhaar card, PAN card, voter ID, driving license, and passport
• Address Proof such as passport, Aadhaar card, voter ID, electricity bill, telephone bill, PAN card, driving license, Property documents, etc.
• Proof of income such as salary slips of the last 3 months, bank statements of the last 6 months, current employment certificate, etc.
• Please note that the necessary documents may vary based on the lender you are choosing.

Tips to Improve Your Loan Eligibility

To make sure that your loan approval process is quick and guaranteed, here are a few tips you can follow:

• Maintain a healthy credit score and a consistent repayment history: It is one of the lender's first checks. A credit score above 750 is considered good to get approved for loans.
• Clear outstanding dues: This will inform the lenders that you are capable of managing your finances and paying dues on time.
• Opt for longer repayment tenure: It reduces your monthly repayment burden; therefore, chances of defaulting are low, as viewed by lenders.
• Find an alternative income source: Try to find alternative income sources to show a higher annual earning. Also, if you have an earning spouse, you can apply from a joint account.
• Avoid applying for multiple loans at the same time: Multiple loan applications indicate that you are in dire need of financial support. In addition, it increases your risk as a loan seeker to the lenders.

There are several lenders offering attractive benefits on instant personal loan today. Securing a substantial amount with reasonable interest rates can be a convenient way for you to pay off considerable medical expenses. Moreover, personal loans require fewer eligibility criteria and no collateral.

Therefore, you need not depend on family or friends for financial support during hard times. Instead, you can weigh your options to select which creditor suits your requirements the best and apply.