5 Reasons to Take a Personal Loan for Medical Emergencies

Ashwin and Preeti were thrilled to welcome their first baby. The delivery was due in two months. However, Preeti had to be taken to the hospital earlier than expected. Though both of them had financially planned for the medical expenses, the sudden emergency left them in a fix. Just like their situation, a sudden unplanned surgery or accident can leave you perplexed about finances too.

As we know, medical emergencies can occur anytime. While you are already emotionally disturbed, a lack of procuring finances at the right time can add to your stress. In that case, a personal loan comes in handy and can relieve you of the financial strain.

Let’s examine five reasons why you should consider a personal loan for medical emergencies.

Quick disbursal
Prompt availability of funds is often crucial, especially in case of a medical emergency. Premature withdrawal of fixed deposits or selling shares can bring in funds after 48 hours or more. Many individuals covered under the cashless mediclaim schemes may find themselves helpless if the claim is not approved or the approved claim is not sufficient.

However, personal loans for medical reasons are disbursed promptly. Pre-approved loans are disbursed almost immediately by banks depending on your bank account transactions. Other lenders too are generally sensitive to your urgency and process personal loans for medical emergencies on a priority basis for a quick disbursal.

No collateral
One of the main reasons for quick disbursal of personal loans for medical reasons is that they are unsecured. Lenders do not demand any collateral or security for granting the loan. Thus, the loan is quickly processed, and the funds are remitted to your bank account in no time.

If time permits and if your asset documentation is in place, you may choose to provide some security in the form of shares, fixed deposits, vehicles, or gold. This reduces the interest rate on personal loans.

Interest rate
The personal loan interest rates start from 10.99%. If the loan is secured, the interest rate may be lower.

When procuring a personal loan, you can choose to repay over a flexible tenure from 12 months to 72 months. For instance, if you are taking the loan just to tide over the liquidity crunch, you may choose the minimum tenure. However, if you believe there might be an uncertain flow of income in the short-medium term, you may opt for a longer tenure of the loan. Once you have the funds, you can easily pre-pay the personal loan before the expiry of its tenure.

Besides, you can take help of the personal loan EMI calculator to have a fair idea of EMIs which you would be required to pay over a period of time.

Minimum documentation
For processing a personal loan, the lenders normally require the following documents:

  • KYC documents like PAN card, Aadhar Card, driving license, or passport;
  • Bank statements for the past 3-6 months;
  • Income statements – salary slips or profit and loss accounts for self-employed individuals;
  • Proof/certificates of asset ownership where you readily have collateral to be pledged.

As you would have noticed, a personal loan for medical emergencies has numerous advantages, prompt disbursal being one of the crucial ones. It relieves your financial stress at a small cost which is often worth it.