You may wonder what to do if your health insurance has run out and there is still a considerable amount left to pay to the medical provider. Well, you can take out a health loan for that matter, and ease the situation and let your worries go.
A medical loan may help in a lot of ways as this borrowing tool is specifically designed for such medical exigencies.
In most cases, health insurance is considered to be an excellent tool to mitigate your future risks as it will guard you against and allow you to pay for your medical emergencies. You will get all required support financially almost for all complex and costly medical treatments depending on the size and coverage of your policy.
However, you need to know a few important things about health insurance and its features. These are:
- All insurance companies will provide you with the money they deem fit and feasible
- They will never cross your policy limit while making such payment and
- Any pre-existing disease will be covered after a specific waiting period.
Therefore, if the actual amount of your medical bills is higher than this policy limit then you will have to look for other sources to foot your medical bill. Moreover, if you do not have enough liquidity to settle the difference in your medical bill and your insurance policy coverage, in such a situation, a medical loan will be very helpful and play an important role in being your last resort.
During a medical emergency as well as making the payments for your treatments you will need to make quick and informed decisions to arrange the required funds within short notice.
There are different sources such as a traditional bank or private lending sources such as https://www.libertylending.com/ that offer generic loan instruments such as personal loans, loans against security, and others that are meant for a wide range of requirements. Contact them to avail of a health loan.
The key differences
A medical loan is a special type of personal loan that is meant for paying medical bills only. There are also a few other key differences and similarities between a medical loan and a personal loan.
- A medical loan is offered for a specific reason
- A medical loan is unsecured in nature
- Interest on medical loans is usually lower than other generic loans
- The fund offered in the medical loan is directly transferred to the account of the medical provider from where you availed of the treatment instead of your personal account
- A medical loan is processed much faster than a personal loan taking around three days normally for disbursal.
Lastly, depending on the policies of the lenders, under a personal loan, your eligibility criteria will be checked to decide whether to approve your loan or reject it.
On the other hand, for a medical loan, traditional banks and other NBFCs may perform an eligibility check of your entire family together.
Therefore, you have an increased chance to get a medical loan than a personal loan especially if you have a poor credit score.
The sources for medical loans
You can avail of a medical loan from a large number of non-banking financial corporations and private lenders as well.
- You can also approach different banks as well for such a loan. Several nationalized banks offer personal loans based on medical loan products that can be used during any medical emergency.
- Apart from the banks and NBFCs, you can also approach specific lending companies that have a tie-up with hospitals and banks and offer medical loans.
Though unsecured, medical loan limits can vary hugely when the loan amount is very high the bank or the lending institution may ask for collateral from you or even seek a third-party guarantee. However, all will depend on their lending policy once again.
Reasons to take a medical loan
You may wonder whether or not you should take a medical loan given the fact that you are in an emergency.
Well, these loans are designed just for these purposes when you have less time in your hand and have to respond immediately to the financial needs for the urgent medical treatment required.
Before going in for medical treatment it should be your priority to arrange the funds for it in the shortest possible time.
However, just like any other borrowing, you must take care of a few points and features of the medical loan so that you do not end up paying exorbitant charges.
- You must read the fine print of the loan agreement before you sign the dotted line to check for the fees, rates, terms, and pre-payment or pre-closure charges as well.
- There may be a few lending companies and financial institutions that may lower the rate of interest or waive off the processing charges and make it up from other areas that you may not know. Therefore, you must also understand the hidden costs if any.
- Often, people take out a secured loan, a low-value personal loan, and a mortgage for planned medical treatments. Therefore, if you have some time on your hand, then make sure that you also evaluate all other available options. This will help you to choose the best loan and decide the best way to take it.
- It is easy as such to apply for a loan today when everything has gone paperless. You can apply for any one of the multiple options from the convenience of your home from your smartphone and do not even have to wait for the approval and an immediate disbursal is there are any pre-approved offers for you.
However, it is recommended that you do not tempt but be judicious to choose a loan that will offer you the most attractive rate of interest, have low processing charges, hassle-free repayment, and most importantly suit your purpose.
Remember, a loan is taken to meet your financial needs and not to jeopardize your finance and credit score.