How to Choose a Loan to Address a Medical Emergency in India

According to India Spends, approximately 6.3 crore people are driven into poverty each year thanks to high cost of healthcare facilities in India every year. This study, released by the Public Health Foundation of India, also reveals that usually about 60% of health expenses are covered out of pocket. Even with a good health insurance policy, you may fall short of the funds required to cover your hospital bill. In such cases, a loan can help you meet costs associated with the medical treatment. However, choosing the right loan is paramount.

Opt for a Loan Against Property for a medical emergency from a trustworthy lender like Bajaj Finserv and secure an amount of up to Rs. 3.5 crore in a hassle-free way. Further, the long repayment tenor of 20 years gives you ample time to get your finances in order without adding to your immediate expenses. To add more convenience to your borrowing experience you can choose the Flexi Hybrid loan facility too. Here, you can borrow from your sanction multiple times, as and when you need funds. This facility charges you interest only on the amount you borrow and not your entire sanction. Additionally, you can repay your loan through interest-only EMIs for the whole tenor, clearing off the principal at the end of it.

The Amount you are Eligible for
A personal loan will offer you an amount based on your credit score, which is heavily impacted by your ability to repay the loan, debt to income ratio and history with credit. Under normal circumstances, the loan amount you would be eligible for will be up to Rs. 20 lakh, which is lower than that compared to a loan against property. So, if you meet the loan against property eligibility criteria outlined by a lender, you can generally get a loan amount up to Rs. 3.5 crore depending on the value of your property if you are self-employed and up to Rs. 1 crore if you are a salaried individual.

Effect of Interest Rates towards paying EMIs
A personal loan in general comes at a higher interest rate as it is a collateral-free loan. This means if you default on the payment for this loan, the lender cannot claim any asset from you to make up for the loss. On the other hand, for a loan against property, you pledge a valuable asset, which the lender can take possession of in case you are unable to repay the borrowed sum. So, lenders are likely to offer you a better interest rate on such secured loans.

Additional Read: Consolidate your debts with Loan against Property

Impact of Tenor on your Loan Repayment
Personal loans are usually sanctioned for a shorter duration and have a tenor from 1 to 5 years. The short duration may prove difficult for you to repay especially since you are incurring a large medical cost. On the other hand, with a loan against property you can stretch the tenor up to 20 years. This allows you to plan your finances better so that you can manage your repayment with ease. Moreover, you can choose to pay smaller EMIs if you are facing a cash crunch or pay larger instalments and save money on interest. In both cases, a loan against property can help you tackle medical costs with a little more breathing room during repayment.

Additional Features of the Loan
Personal loans usually have a very easy online application and give you money in your bank account in as soon as 24 hours. In some cases, you may be able to secure a loan against property quickly too, but this loan has a longer processing time as the lender needs to verify and assess your pledged property. One of the primary benefits of a loan against property is that it comes with a balance transfer feature, this means you can switch your loan against property from your existing lender to another to enjoy a more competitive interest rate on your sanction. Further, you can avail a top-up loan up to 50% of your sanctioned loan amount and use it to fund other requirements too. This additional access to a substantial amount of funds, especially during a medical emergency, allows you meet your needs better.

As you can see, a loan against property in India may prove to be a better source of funding for large medical expenditure. Based on the value of your property you can secure a substantial loan amount. Ensure that you have the documents required for a loan against property in place for faster disbursal of funds.

Unsecured loans such as personal loans or secured loans such as loans against property can help you fund this expense, but you should look for an option that doesn’t become an additional burden on your finances. Explore the types of loans that can come to your aid if you are confronted with a medical emergency based on the loan features. Here’s a snapshot.

You can also view other offers on loans, insurance and easy financing to apply hassle-free and meet all monetary needs with ease.

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