Life is unpredictable, and you never know when you or a loved one might face a medical emergency that requires hospitalisation. Such situations can be both stressful and financially burdensome. To help manage these unexpected expenses, banks offer medical loans, providing crucial financial assistance when you need it most.
Key features of medical loans
While medical loans share similarities with personal loans, they come with specific features designed to meet urgent healthcare needs:
1. Fast disbursal
Medical loans typically have a quick approval process, with funds disbursed within 2 to 7 working days after your application is submitted. Many banks utilize technology to streamline document verification and eligibility checks, further expediting approval. If you have a good credit history and are an existing customer, you might qualify for a pre-approved loan, ensuring faster disbursal.
2. Easy documentation process
The documentation required for medical loans is straightforward, making the application process easier. Generally, you will need:
- ID proof: PAN card, Aadhar card, voter ID, driving license, or passport
- Address proof: Passport, utility bills, Aadhar card, voter ID, driving license, or PAN card
- Income verification: Salary slips for the last three months and Form 16 or Income Tax Returns (ITR) for the past two years
For existing customers, pre-approved personal loans may not require extensive documentation.
3. Flexible repayment terms
Medical loans offer flexible repayment tenures, usually ranging from 1 to 5 years, with some banks providing options extending to 6 or 7 years. This flexibility allows you to choose a repayment plan that fits your financial situation.
Interest rates offered by banks for medical loans
Interest rates on medical loans vary across banks and non-banking financial companies (NBFCs). Here’s a quick overview:
EMI calculator for medical loans
Understanding your monthly instalments (EMIs) is crucial when planning a loan. An EMI calculator is an easy-to-use online tool that helps you quickly determine your EMIs by simply entering the loan amount, interest rate, and tenure. This tool provides a fast, accurate breakdown of your payment schedule, saving you valuable time and effort.
Conclusion
Medical emergencies can be incredibly challenging, both emotionally and financially. If you find yourself in this situation, it’s essential to consider the long-term implications of taking out a medical loan. Keep in mind that medical loans often come with high interest rates, similar to personal loans.
Therefore, assess your financial situation carefully before committing to a long-term financial obligation. By understanding the nuances of medical loans, you can make informed decisions that will help you navigate through unforeseen healthcare expenses effectively.
