Personal Loan for Medical Emergency

Many banks and NBFCs offer Medical Loans, a variant of personal loan, to consumers facing medical emergencies. Such loans do not require any security or collateral and are offered primarily on the basis of the repayment capacity, credit score, occupation profile, employer’s profile, etc. of the loan applicant. However, applicants can also consider the regular personal loan offered by lenders not offering special medical emergency loans.  As lenders do not put any end usage restriction on personal loans (except for speculative purposes), applicants can also avail regular personal loans to meet various medical expenses be it hospital bills, treatment cost, cost of medicines, expenses related to surgeries and operations, etc. Some lenders also offer instant personal loans for medical emergency or medical expenses to applicants having good credit profile.

Features of Personal Loan for Medical Emergency

The features of medical emergency loan and regular personal loans offered by the lenders are usually the same. Even their interest rates usually do not vary. Here are some of the major features of personal loans which will give you a fair idea of medical loan features.

Interest Rates

Personal loan interest rates offered to deal with medical emergencies usually start from 10.49% p.a. onwards. However, some PSU banks might also offer personal loans for medical emergencies loans at lower interest rates.

Note: Rates as of 27th November 2024

No Collateral Required

Lenders do not require any collateral or security from applicants availing personal loans for medical treatment.

Have Quick Disbursal

Personal loans usually take around 2-7 working days for disbursal after the submission of loan application. Some lenders use end-to-end digital processing of personal loan application, which allows such loans to have quicker disbursal. Many lenders also offer pre-approved instant personal loans to their select customers based on their credit profile. Such pre-approved personal loans are usually disbursed within a few seconds of making personal loan application.

Minimal Documentation

Lenders usually require medical loan applicants to submit their ID proof, address proof, income proof, etc. during the documentation process. However, pre-approved personal loans offered to existing customers need not undergo fresh documentation for availing personal loans.

Flexible Repayment Tenure

Most lenders usually offer a flexible repayment tenure of 1-5 years to the applicants availing Personal Loan for Medical Emergency. However, some lenders also offer personal loan tenures of 6 and 7 years.

Eligibility Criteria for Applicants availing Personal Loans for Medical Emergency

• Applicants availing personal loan for medical treatment should be salaried or self-employed
• The age of the applicant should be 21 years at the time of loan application
• The applicant should be 60 years old at the time of loan maturity
• Individuals employed at private limited companies or public sector undertakings
• Minimum monthly income of medical loan applicants should be Rs 15,000
• Applicants with credit scores of 750 and above have higher chances of availing personal loans for medical emergency at lower interest rates

Documents Required for Medical Loan

• ID Proof (PAN card, Aadhar card, voter ID, driving license, passport)
• Address Proof (passport, electricity bill, telephone bill, Aadhar card, voter ID, driving license, PAN card)
• Salary slip for last 3 months
• Form 16
• ITR with income computation for last 2 years

FAQs Emergency Personal Loan

1. What is the minimum credit score required to avail personal loan for medical emergency?

Ans. The minimum credit score requirement for availing medical emergency loan might vary across different lenders. Some lenders might also offer personal loans to applicants who are new to credit or have no or low credit score. However, the applicants having credit scores of 750 and above usually have higher chances of availing personal loans at lower interest rates. Those having poor credit scores are usually charged higher interest rates

2. What is the minimum monthly income requirement to avail medical emergency loan?

Ans. Most lenders have set minimum monthly income of Rs 15,000-25,000 for availing medical emergency loan. However, some lenders have set a higher minimum monthly income requirement for availing medical emergency loans.