Description

Unforeseen situations are inevitable and often come unannounced. We need the assistance of funds to tackle such situations efficiently. The escalating costs of medical bills add up to the tension of managing critical situations in life. When one is left with not enough savings to manage the immediate requirement of funds, one can tend towards Medical Loans. It can be a good choice to avail medical loans that is available with minimal formalities.

Lenders offering Medical Loan 

Bank/NBFC

Loan Amount

Loan Tenure

Interest Rate

Kotak Mahindra

Up to Rs 15 lakh

5 years

10.75% onwards

I2I Funding

Up to Rs 25 lakh

6 years

6% -36%

Fullerton India

Up to Rs 25 lakh

As per lender

11.99% p.a

Bajaj Finserv

Up to Rs 25 lakh

5 years

12.99%

Money Tap

From Rs.3,000 to Rs 5 lakh

2 months to 36 months

13% p.a onwards

India Bulls Dhani

Rs 1000 to Rs 15 lakh

3 months to 24 months

11.99% onwards

Tata Capital

Rs 75,000 to Rs 25 lakh

6 years

11.25 % p. a onwards

Medical Loan and Its Features and Benefits

Kotak Mahindra Bank

Medical emergency needs urgent funds and a lot of time individuals are not having the backing of enough monetary assistance to pay the hefty medical bills and other costs. Medical loans can come as a rescue in such situations.

  • Medical loans are available ranging between Rs 50,000 to Rs 15 lakhs
  • The loan can be availed with minimal paperwork and good customer service.
  • The loan can be availed at attractive interest rates
  • The funds availed can be used for any medical treatments

I2I Funding 

Features

To deal with the stressful times of medical emergency conditions, having the backing of funds is the most, one needs during such times.

Features

  • There is flexibility in repayment tenure of loans, with zero prepayment penalties
  • The loan can be availed with simple clicks and minimal documentation process
  • The interest rate at which loan offered is affordable
  • The long-delayed processes of availing loan is forgotten and users are offered quick funds on qualifying eligibility

Fullerton India

Features

  • Applicants need not pledge any collateral as security or get any co-applicant for the loan.
  • The funds will be disbursed to the account on eligibility.
  • The user can check the eligibility of loan online.

Bajaj Finserv

Features

  • Applicants between 23 to 55 years of age can apply for this loan, provided they are employed and having regular source of income.
  • The loan applied will be approved within minutes.
  • There is flexibility of repayment tenure.

Money Tap

Features

  • Applicants applying for this loan are required to provide minimal documents for the loan. Primary documents required are identity proof and address proof.
  • Applicants are required to pay the interest only for the amount they use.
  • An applicant can avail a loan of minimum Rs 3,000 and maximum of the approved loan limit.
  • The loan applied for, get real time approval.

India Bulls Dhani

Features

  • User is required to submit only the minimal documents while applying for the loan.
  • The money gets disbursed to the users account instantly.
  • User is required to apply for the loan online.
  • The funds can be used to cover all types of expenses of medical needs.

Tata Capital

Features

  • There is option of flexible EMI plan for the loan availed.
  • Applicant need not provide any collateral for the loan availed.
  • There is no additional fee for part payment.
  • On qualifying the eligibility, the loan is disbursed in a short span of time.

Medical Loans Eligibility Criteria

  • Applicant should be resident of India.
  • Applicants between 21 to 58 years of age to apply for medical loan.
  • Salaried and self-employed individuals can apply for the loan.
  • Individuals should be having at least 1 year of experience with the current organization.

Documentation Required

The list mentioned below of documents will be required to avail medical loan

  • Passport-sized photograph
  • Identity Proof
  • Address Proof
  • Latest Salary Slip
  • Form 16
  • Organization’s appointment letter
  • Latest bank statement
  • Valid Income documents
  • Certificate of employment

Things to consider while applying for the medical loan

Few things need to be taken into consideration while applying for the loan:

Credit Score – Credit score is the most vital factor in getting the loan approval. A healthy score has higher chances of loan approval than a weaker one.

An applicant with a good credit score stands a chance to negotiate with the lender for better interest rates. 

Interest Rate – Different lender charge different interest rates. It is advisable to compare before applying for a medical loan, and chose according to your best interests suited. To keep the overall cost low one should choose for a better deal of interest rates

Other Charges – Financing institutions levy additional charges of processing fee, pre-payment charges, pre-closure charges, penalty charges, dishonor charges etc. Before finalizing a lender look for all the additional charges mentioned.

Disbursal Time – Check out for the disbursal time of the lender, as medical situations demand immediate attention of funds. Lenders claiming to get the loan disbursed in a short span of time, will be of assistance.

EMIs Payable – Applicant willing to apply for the loan can check the repayment of the loan amount by using the EMI Calculator tool available on most lender’s website. It gives an idea of monthly cash outflow of the repayment. One will have a fair idea of availing the exact amount of loan for the medical need. 

How to apply for a Medical Loan for emergency purpose?

In today’s digital era applying for the loan is not a time-consuming task anymore. With few clicks online one can apply for the loan by filling the form and uploading the documents. A borrower is saved from doing several rounds of bank. 

One simply needs to fill the loan application, submit the necessary documents and click on the submit button on the portal. Lending institutions then contact you for further processing of loan. 

On the other hand individuals seeking to apply for the loan via offline method can visit the branch and submit the application form with necessary documents. One should apply for the loan after a thorough research of the rates and other charges quoted by the lenders.

Tips to avail for the best medical loan interest rate

Few tips will help one in getting the best deal on interest rates are:

  • Applicants seeking for the loan should not apply with multiple lenders at a time. It might impact negatively on your credit score.
  • Maintain a good credit history by paying all the dues on time.
  • Do not default on loan repayments. It impel lenders to think twice.
  • Building a good credit history goes a long way.

FAQs

Q1Does average credit score applicants get a loan?
This depends on the lender’s term and conditions. Typically, a score of 750 and above is approved faster.
Q2Is a borrower supposed to do a down payment while availing a medical loan?
Generally, it is not the case with the medical loan. Borrowers are not required to deposit any down payment.
Q3Is there any restriction on the utilization of funds being availed as medical loan?
No there is no restriction in the utilization of the funds for treatment purpose.