Smart ways to Avail a Small Loan for a Medical Emergency
According to a recent financial report, healthcare inflation in India is nearly double of the overall retail inflation, which has remained below 4% for 3 years consecutively.Smart ways to Avail a Small Loan for a Medical Emergency
- As of April 2019, healthcare services costs in India have clocked a growth rate of over 9%.
- 147.4 – Consumer Price Index of health in India as of June 2019.
Even though India is widely known for low treatment costs globally, it still poses a formidable financial challenge for a large section of the Indian population. The challenge of meeting treatment costs compounds when it is a medical emergency in question. For that reason, multitudes of individuals choose a medical emergency loan in a monetary bind.
Credit from institutionalised sources is one of the most convenient assistance to mitigate a medical emergency pronto. Individuals can explore a few ways to avail such loans.
What are the ways to avail credit for a medical emergency?
A medical emergency loan is available from multiple sources in the Indian financial market. However, some forms of credit can be a bane in disguise due to the towering costs, like a payday loan. Therefore, it is crucial to consider ways that are affordable and reliable, while at the same time convenient enough to address a medical emergency promptly. A few of these are listed below.
- Loan against credit card balance
One of the prompt ways to address a medical emergency is to avail a small personal loan against the remaining credit limit on a credit card. Individuals can repay such loan conveniently using the EMI option.
However, such a loan might entail a high interest rate and also all credit cardholders may not be eligible for such a loan. Therefore, individuals need to ensure they vet the option duly before going for it.
- Health card
Individuals can also opt for a health card to avail credit from an institutionalised source. It is the latest addition to the array of quick credit facilities for healthcare available to consumers.
Individuals can utilise such card in any healthcare facility to pay for a medical emergency. Furthermore, such cards come with a tenor of up to 24 months, thus, allowing ample time for repayment.
- Small personal loan from a financial institution
A medical emergency loan directly from a financial institution is one of the popular ways to address such a delicate exigency. A personal loan for a medical emergency can be used to meet a host of financial obligations like paying hospital bills and doctor’s fees, purchasing medicines and other medicinal supplements, meeting post-hospitalisation expenses, etc.
- Rs.4.29 lakh crore – Total outstanding balance in the personal loan segment as of December 2019.
One of the primary advantages of availing a personal loan directly from a financial institution is the tenor that extends up to 60 months. Thus, individuals can conveniently repay their loan in equal instalments without straining their financial standing.
Furthermore, NBFCs like Bajaj Finserv bring pre-approved offers to ensure a hassle-free and speedy procedure for loan processing and disbursal. These offers come with a host of different credit facilities like personal loans, business loans, and credit cards. Individuals can furnish their name and phone number to check their pre-approved offer.
How to avail a personal loan for a medical emergency?
In order for individuals to avail a medical emergency loan, they first need to ensure they meet the eligibility criteria for the same. The standard eligibility criteria for a small personal loan are –
- Credit score should be above 750
- Should be an Indian citizen residing in the country
- Must be employed in an MNC, or the public or private sector
- Alternatively, should possess a steady stream of income.
Furthermore, individuals can increase their chances of availing a personal loan by following measures like maintaining a low debt-to-income ratio.
Nevertheless, even apart from the aforesaid funding options, there is a deluge of other ways, individuals can avail credit. However, they should consider certain rules of thumb. Like, for instance, a medical emergency loan should come with a fixed instalment, short repayment tenor, and EMIs should not constitute more than 5% of an individual’s income. A short-term personal loan can be of significant aid during a medical emergency owing to factors like instant approval and low interest accumulation.