A loan may have a specific name but can be used for different purposes according to its terms and features. Few loans such as student loan, marriage loam, home loan or an auto loan are meant to be spent for the specific purpose the loan is designed for but others such as a personal loan can be used for varied purposes and are given to you with no questions asked.
If you wish, you can also pay off the bills using your credit card and therefore transform your medical debt in to a credit card loan. You will have to repay this loan as per its terms and conditions and within the stipulated time limit. You may also use a personal loan to get rid or your medical bills or even take out a medical loan for that matter.
Medical loan features
There are different reliable sources from where you can take out a medical loan. Traditional banks often offer these loans and sometimes even other reliable private lending sources such as https://www.libertylending.com/may also offer you such a loan if you are lucky enough.
Healthcare as it is in these times is very expensive. Most people will not have a robust health insurance plan and cannot afford to undergo expensive medical treatments that may be required or pay it off after they undergo such a treatment. It is true that a solid health insurance plan will protect you from the medical uncertainties in your life but sometimes even this may not be enough to cover all the expenses.
In such situations you will have to make the payment from your pocket or from other sources such as your family or friends. Typically, a medical personal loan can come to your rescue during these difficult times.
Personal medical loans are specialized personal loans that are aimed at offering you a cover for your unforeseen medical expenses. These special medical loans can be used to pay for medical expenses that include the following:
- Hospitalization bills
- Cost of surgeries such as bypass surgery and angioplasty
- Medical prescription bills
- Chemotherapy and several others similar treatments.
This is a very good option to choose when your health insurance cannot provide the full coverage.
The eligibility criteria
All medical loans will enable you to cover those expenses that your health insurance will not due to its limitations. Another significant advantage of taking on a medical loan is that you will not have to give anything as deposit or pay collateral for it. The primary objective of these medical loans is to provide you with an opportunity to receive quality medical care without any delay.
However, you may find that your loan approval is rejected by the lender. The main reason for such denial is that you may not have met with the desired requirements to obtain such a loan. In general, the eligibility criteria for obtaining a medical loan are as follows:
- You must be a salaried or self-employed individual or
- A pensioner having taken a voluntary retirement.
Most of the banks usually do not have the requirement for a minimum salary of an individual to apply for such loans. Apart from that, banks usually do not require much documentation for it as well.
The most common documents that you will have to furnish along with your application for the medical personal loan are:
- An identification proof that may include a copy of your passport, PAN card or driving license
- A valid proof of address such as your passport, SSN, voter card, driving license, ration card, recent electricity or telephone bill
- Birth certificate as a proof of your date of birth
- Passport size photographs
- A couple of latest salary slips if you are salaried
- Appointment letter of the company
- Income tax details
- Bank statement for a few months
- Valid income documents for self-employed applicants and
- Proof of qualification.
Well, all banks and money lenders may not require all these documents together and therefore you are required to know about their lending policy beforehand either by visiting their office in person or online.
Rate of interest
Ideally, the banks will have two types of interest rates to offer for the medical loans and other financial institutions and lenders may also follow the same principle. Though the rate amount may be governed by the government the common types of interest rates are:
- Fixed interest rate: This is the type where the rate of interest remains constant throughout the loan term even if there is a change in the prevailing money market. Therefore, you will pay the same amount of interest till the tenure ends. This type of interest rate is often favored by people who have a fixed and tight budget to follow because it helps them to know the amount they have to repay every month and make arrangements to keep the fund ready for to make their loan repayment easier.
- Floating interest rate: This type of interest depends on the prevailing market economics and therefore the floating interest rate fluctuates. It may change even daily depending on the deficit and inflation in the market rate. However, floating interest rates are usually much lower than the fixed interest rate for the fact that it keeps on changing.
However, no matter whichever source you choose, all will consider your credit score first to go ahead with the document verification and loan processing stage. Your credit score will also be the deciding factor of the rate of interest to charge from you as well as the length of the loan, both of which will in turn determine the monthly payment amount. Therefore, make sure that you have a sold FICO score.
Benefits of medical personal loans
The features and benefits of personal medical loans are that these are affordable and approved quickly. You get to repay the loan in small installments and not have to worry about loss of collateral as there isn’t any. With simple documentation required both salaried as well as self-employed individuals can get these loans online as well.