Healthcare Insurance is one such way to finance medical expenses, but for certain procedures it is best to look at Medical Loans.
In this article we will tell you all you need to know about Medical Loans.
What is a Medical Loan?
Medical loans are personal loans that can be taken out to finance medical procedures, medical debt reconciliations, optional surgical procedures, out of network charges or other medically related costs that are not covered by your health insurance.
How Do Medical Loans Work?
Medical loans are offered by various lenders and the application process is similar to applying for any type of loan, except depending on the lender they may be more flexible in the credit score requirements, or previous credit history than others.
The only downside to medical loans is that they may have high-interest rates.
Quick Tip: Before you choose a medical loan, be sure and look into payment plans or medical credit cards.
What Are the Advantages of a Medical Loan?
With medical expenses skyrocketing, more and more people end up losing all their savings while financing a medical procedure or to meet medical bills.
That’s why taking a medical loan is a smarter choice because not only does it allow you to manage your health care costs on a payment schedule, but also helps you pay for medical needs and avoid the stresses of worrying about collections or struggling to pay-off procedures in one shot.
Other advantages of taking out a Medical Loan:
- You may be able to get the funds for your procedures much faster than if you waited for insurance to decide whether something is covered or not.
- Unsecured medical loans do not necessarily require you to have collateral
- A medical loan may not impact the credit utilization ratio on your credit report.
- Medical loans may in some circumstances offer you better finance options and rates than financing through the medical service provider.
- Use money from your medical loan to cover other medically related expenses (for example additional living expenses during your recovery and treatment).
Document required while applying for a Medical Loan
Like any other loan application, Medical Loans require the standard document verification.
Below are the documents every lender asks for when you apply for a medical loan:
The documents required to establish your credentials
- Voter ID
- Aadhaar Card
- Ration Card
- Driving License
Proof of identity and proof of residence
- Ration card
- Telephone or Electricity Bill
- Rental agreement
- In case you’re employed, your monthly salary slip.
- In case you’re self-employed, a recent acknowledged ITR.
Learn more about your Personal Loan Eligibility here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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