Throughout the year 2020, cracks in the Indian healthcare system have become much more apparent than before. Even by conservative estimations made from government statistics, budgetary allocation for healthcare amounted to Rs.69,000 crore, which made up a mere 1% of GDP. It amounted to a meagre 5.7% increase from the previous budget.
It is in this backdrop that healthcare costs in India are rising steadily. If one of your family members has to be hospitalised to treat a critical illness, it may end up putting a substantial strain on your finances. In such a financial crunch, availing of a medical emergency loan can extend much-needed liquidity.
These are instant personal loans that are available without any end-usage restrictions and can be utilised to meet any number of financial requirements, medical or otherwise. Nonetheless, to avail of this advance, borrowers need to be aware of a few crucial pieces of information.
When should you apply for the loan for emergency situations?
The personal emergency loans give you the freedom to use it for any legal purposes as per your needs. But many people use the same for the following reasons. Take a look:
1. Medical emergencies
One of the top reasons people apply for emergency loans is to cover an urgent medical situation. The loan can cover all bills for hospitalization, medicines, and diagnostics, post-hospitalization and beyond.
2. Debt consolidation
If your debt is consuming a significant portion of your income, you can always rely on the loan for emergency situations. You can use the loan money to pay off the entire debt in one go. This way, you can pay just 1 EMI in the month and enjoy considerable savings.
3. Wedding expenses
From catering to decoration to guest accommodation to booking honeymoon packages and more, the personal emergency loan can be used for all.
4. Higher education
You can also use the loan money if you wish to send your children abroad for pursuing a quality education.
5. Home renovations and repairs
If your home has been crying for repairs for a long time, then you can use the loan for emergency situations to manage all expenses. You can also do that if you wish to give a facelift to your house.
Eligibility criteria
To opt for a quick personal loan during a medical emergency, an applicant has to meet the following basic eligibility criteria –
- Must be a resident citizen of India.
- Aged between 23 years to 55 years.
- Employed with a multinational company, private or public company.
The minimum salary requirement to avail of a personal loan primarily depends on the city of residence. For instance, if you are a resident of Delhi, Mumbai, Pune, or Bangalore, you need to earn a monthly salary of Rs.35,000 to avail of such a loan.
Prospective borrowers are also required to maintain a CIBIL score of 750 or above to get this advance. To get a personal loan with low CIBIL, individuals may have to compromise with the loan terms.
Required documentation
To get the loan, one needs to submit the following documents to the lender –
- KYC documents, which would include Aadhaar card, PAN card, voter ID, passport, driving license, etc.
- Bank account statement for the last 3 months.
- Salary slips of the previous 2 months
- Passport-size photographs
These comprise the important documents required while applying for a personal loan.
Application process
The application process to avail of a medical emergency loan is quite convenient and simple. The steps to apply for a quick loan are as follows –
Step 1: The online application form has to be filled with the necessary personal, financial, and employment details.
Step 2: Mention the loan amount and repayment tenor to obtain instant approval.
Step 3: All the relevant documents have to be submitted to the lender’s representative.
Step 4: On approval, the loan amount will be disbursed within 24 hours.
Prominent NBFCs like Bajaj Finserv further expedite the loan application process with pre-approved offers that involve minimal documentation. Such offers are extended on various types of credit like personal loans, business loans, etc. You can check your pre-approved offer by submitting your name and contact number.
Advantages of availing of a personal loan during a medical emergency
Some of the major benefits include –
- High loan amount – Instant personal loan can offer a high amount of up to Rs.25 lakh based on an applicant’s eligibility. Such a personal loan can help you meet your financial needs without hassle.
- No end use restriction – There are no restrictions on how the loan amount is to be utilised. The personal loan availed for a medical emergency can be used for ancillary expenditure as well. It ensures that borrowers do not have to take any other loans to meet the sundry expenditure.
- No requirement of collateral – Since it is an unsecured loan where no collateral has to be pledged, the CIBIL score of an applicant has to be high enough. One may check a free CIBIL score online to ascertain his/her eligibility.
- Flexibility in repayment – Repayment tenor for the loan can go from 12 months to 60 months.
A medical emergency loan would help you to manage exorbitant medical bills without spiralling into financial distress. Moreover, timely servicing of the loan would help you to increase your credit score as well.
