Personal Loan for Medical Emergency

A medical loan is a type of personal loan that you can avail of in the name of medical expenses. Namely, you can use this fund to finance various healthcare requirements, including surgeries, treatments, hospital stays, medications, and medical equipment. Furthermore, as it falls under the category of unsecured loans, you can acquire this medical emergency loan without pledging any of your assets as collateral. This option might appear enticing, particularly if you are already struggling with the challenge of settling your medical costs and lack the necessary health insurance coverage to offset them.

This comprehensive guide provides information on typical medical loan interest rates, eligibility criteria, the application process, and other essential details regarding a medical loan. By the end of this guidance, you will be well-informed about how to apply for a medical loan online and make the best choice for your healthcare needs. Let’s dive in.

What Are the Eligibility Criteria for a Medical Loan?

The eligibility criteria for a medical loan in India may vary depending on the lender, loan products, and the applicant’s profile. However, some of the common factors that most lenders consider are:

Your Age: 

You should be somewhere between 21 years and 60 years old to apply for a medical emergency loan.

Your Income: 

You should have a regular source of income, either from a salaried position or as a self-employed professional. In general, a minimum monthly income of Rs 20,000 to Rs 25,000 is considered favourable.

Your Credit Score: 

You should possess a high credit score and a good credit history to qualify for a loan for medical emergency. A credit score of 700 or above is viewed as ideal. Yet, a credit score slightly below this criteria is also considerable, and thus, you may face higher interest rates and less favourable terms.

What Are the Interest Rates for Medical Personal Loans?

When you consider applying for a medical emergency loan, comparing the interest rates different banks offer is crucial. By doing so, you can identify the most cost-effective interest rates and potentially save thousands of your hard-earned money in the long run. So, we have compiled a list of top lenders and the interest rates they provide, enabling you to make an informed decision. Let's scroll down.

Lender Interest Rate Loan Amount Loan Tenure
Arogya Finance 0% to 9% p.a. Up to Rs. 10 lakhs 6 to 48 months
Tata Capital 10.99% p.a. onwards  Up to Rs 35 lakhs 12 to 72 months
Fullerton India 11.99% p.a. onwards Up to Rs 25 lakhs 12 to 60 months 
Money Tap 12.96% p.a. onwards Up to Rs. 5 lakhs 2 to 36 months
Bajaj Finserv 11% p.a. onwards Up to Rs. 40 lakhs 12 to 60 months 
Indiabulls Dhani 13.99% p.a. onwards Up to Rs. 15 lakhs 3 to 24 months
iServeFinancial 13.99% p.a. onwards  Up to Rs. 30 lakhs 12 to 60 months 
Finnable 16% p.a. onwards Up to Rs. 10 lakhs 6 to 60 months 

Can I Get a Personal Loan for Medical With Bad Credit?

In India, numerous lenders offer a loan for medical emergency to applicants with bad credit scores. However, it's essential to note that your credit score ultimately determines your interest rates and loan amount. Having a high credit score can secure you a lower interest rate, while bad credit scores typically result in higher interest rates. Moreover, in the worst-case scenario, failing to meet the minimum requirements the lender sets may lead to your application being rejected.

Hence, if you have a bad credit score, it is advisable to compare multiple lenders and explore loan options without adversely affecting your credit score. Nowadays, several lenders offer prequalification without any impact on your credit score, enabling you to review the terms for which you may be eligible upon application. Thereby, you can ultimately determine the most cost-effective medical loan for yourself as an applicant with poor credit scores.

How Long Does It Take To Get Approved for a Medical Loan?

The time duration for approval and disbursement of a loan for a medical emergency can differ from one lender to another. Besides, it is also influenced by your creditworthiness, the completeness of your document submission, and how promptly you respond to inquiries (if applicable) from the representative of your chosen lender. 

However, you can generally expect the funds to be credited to your account within 24 to 48 hours. Some lenders, on the other hand, offer a service called "pre-approval," where the lender has assessed the borrower's eligibility and creditworthiness and has agreed to lend them a specific amount of money for medical expenses at a predetermined interest rate in advance. By doing so, lenders ensure that they can provide a loan amount within a few minutes to approximately 4 hours.

Apply for a Medical Loan Online

You can easily apply for a medical loan online through the Urban Money website, where you can compare offerings from over 50 top lenders in India, check your eligibility, and apply for the one that best fits your needs. Let's follow the simple steps outlined below:

  • Visit the official website of Urban Money
  • Tap the “Loan” option and choose "Personal Loan." You can locate these options on the horizontal menu bar of the home page. 
  • You will be directed to the personal loan page to compare lenders, assess your eligibility, and submit loan applications for your medical emergency loan.
  • Click on your chosen lender, which will take you to another page where you can initiate your medical loan application.
  • Upon scrolling down, you can locate the “Appy Now” button, and tap on it.
  • A small digital form will appear on your screen, prompting you to input your name, mobile number, city, and the specific type of loan you wish.
  • Click the "Submit" button.
  • A 6-digit OTP will be sent to the mobile number you provided.
  • Enter the OTP and once again click the "Submit" button.
  • Within a day, a representative from Urban Money will contact you regarding your chosen lender.

Frequently Asked Questions (FAQs)

Do banks give loans for medical?

Yes, numerous banks provide a loan for medical emergencies.

Can I do MBBS on loan?

Yes, you can pursue an MBBS degree with a loan, but it typically falls under the education loan category rather than a medical loan.

What is the maximum medical loan amount I can avail of?

The maximum medical loan amount depends on the lender and the type of loan you choose. However, you can generally secure a loan amount of around 30 to 40 lakhs.

Can I still get a loan if I have an average credit score?

Yes, you can obtain a loan with an average credit score. However, it is important to note that having a higher score allows you to secure a lower interest rate and a higher loan amount, while having a lower credit score may result in higher interest rates and less favourable terms.

How will the interest rate and the loan term be decided?

The interest rate and the loan term for your medical loans are typically determined by various factors, including your credit score, income, occupation, age, as well as the terms and conditions of your chosen lender.

Urban Money