Are you, by any chance, in a situation where a loved one needs immediate medical attention and you do not have enough funds to pay for the treatment, even after having taken family health insurance? You are not alone. In many cases these days, health insurance is just not enough to cover the huge medical expenses. Medical emergencies could cost anywhere between 5 and 15 lakhs and even more. These amounts are high for an insurance cover and often people are left distraught trying to pay the hospital bills.
This is when people turn for help to companies providing medical loans. This helps the patient to get the right treatment at the right time. People doubt if a medical loan is the right step to take in such a situation. Well, why not? Let’s look at the benefits of a medical loan versus other financing options.
The Loan Amounts
Once your insurance cover is exhausted and you still need some funds to cover the expenses, you can apply for a loan for the balance amount. This could be as small as INR 30,000 or as huge as INR 50 Lakhs. This range of loan amount will not be available with any personal loan.
The Speed of Approval for Loan
If you apply for a personal loan, the process of approval will require verification of documentation and credit score. This process takes time and even then you may not be able to get the loan amount you desire. When you need the amount quickly, it is better to go for a simpler process, which is provided by the medical loans.
Who Really Needs the Medical Loans?
Most of the applicants for a medical loan come from the middle and lower income groups and the average amount applied for is around INR 1 lakh. The loan is beneficial for these consumers as it can be availed irrespective of the age or the medical history of the patient, which are the typical restrictions imposed by insurance companies.
The Rate of Interest Rate
If you go to any lender for emergencies, they would charge you a heavy interest on it. With medical loans, the interest rate is reasonably maintained at 12-15%.
As the patient recovers from the treatment, you can start planning the repayment of the loan, the tenure for which is typically between 6 and 48 months.
A personal loan from banks is not advisable for a medical emergency as the banks have a longer procedure for approval, which fails the purpose of emergency funds. Also, the approval depends on the current financial status and the credit history of the applicant who can actually be the patient as well.
In a nutshell, medical loans are a boon to the people and the society because the companies look at the status of the family as a whole before giving the loan, which makes it easier to get a loan as per your requirements.