Pandemic has taught us that we can never be sure what medical emergencies will arise in the future and how much money will be necessary to handle them. More people opt to invest in insurance for financial assistance on these rainy days. With health insurance, coverage is limited in treatments, hospitals, and funds. However, another alternative is to take out a personal loan, which has no such limitations. This article will explore the benefit of a personal loan for health emergencies.
Are personal loans a viable option for medical emergencies?
Today, an individual can take out a personal loan for any financial assistance they may need, including medical issues. Below are some reasons why taking out a personal loan in case of a medical emergency is a viable option:
Quick access to funds
Apart from medical treatment, the other time-sensitive thing is the funds required to treat it when there is a medical emergency. A personal loan can help with that. Moreover, applying and approval for the same is also quick and hassle-free with online applications. The funds also get directly credited to the account, sometimes within 24 hours. Furthermore, individuals don’t need to pledge any of their security or collateral to get access to it.
Medical emergencies are stressful enough that people don’t want to worry about documents verification and other forms of proof for getting medical treatment. For most personal loans, minimum documentation is required, such as identity proof, salary slips, and bank statements. Moreover, since collateral isn’t necessary, borrowers don’t have to arrange documents for them. Banks may even offer pre-approved loans for their existing clients.
Fixed interest rates
The personal loan interest rate is another benefit in taking out a personal loan in health emergencies. The demand for personal loans has increased in the last few years. Banks and financial institutions are offering various competitive interest rates to make the best of that. Along with that, borrowers can even take advantage of value-added services, festive discounts, and offers. Furthermore, personal loan interest rates are fixed in nature. Therefore, there is no need to worry about interest rates rising later.
Another advantage is that personal loans come with flexible tenures and repayment options. Thus, borrowers can plan everything as per their convenience. The repayment period usually goes up to 5 years, but companies like Tata even offer up to 7 years of repayment flexibility. To plan repayment strategies smoothly, the borrower can also take the help of an online personal loan EMI calculator.
Coverage of all expenses
Health insurance specifies which medical conditions and issues are covered under the policy. Additionally, there is a limit on how much can be used. However, a personal loan for health allows the borrower to use the funds in any way they want. Furthermore, in health insurance policies, the insured can only receive treatment at the hospitals mentioned in the policy. In addition, the person will not have to provide a medical certificate, expenses, or billing proof. But with personal loans, such restrictions do not apply.
After reading the above article, you would have understood how personal loans can help with medical emergencies. Medical treatment should never be compromised. However, despite the pros of a personal loan for health emergencies, you should always carefully research lenders, their approval process, repayment options, and other terms and conditions before investing. You can always take the advice of an expert or financial advisor.