5 things to know while applying for a personal loan for medical emergency

Medical emergencies come unannounced, and bring with them huge bills. You may be able to foot the bill partly with your savings. But what happens if you can’t pay the rest of it?

In such cases, you can think of taking a personal loan. You can take such a loan without giving a collateral as well. To cater to this particular need, lenders have come up with personal loans for medical emergencies. These loans can help you tide over your difficult phase without, at least, worrying about the expenses. And you do not have to offer a security deposit either. Read on to know more about these loans.

• Scout for the right lender:

When you get a house built, the architect is of utmost importance, right? Similarly, when you apply for a personal loan for a medical emergency, you must pick the right lender. It is useful to pick a non-banking financial company (NBFC) that offers a low interest rate and a flexible tenor. You must also consider the other features of the loan. Read through the terms and conditions before you apply for one. Shop around until you find a good fit.

• Gauge if you fit the bill:

Lenders are wary of giving loans to customers with a bad credit history. Even if you have a good CIBIL score, it must meet your lender’s standards. One way of doing this is by checking the eligibility criteria on the lender’s website. If they don’t match, the lender may turn down your application. Will you be able to pay off the loan after your surgery? The lender will take this into account when you apply for the loan.

• Keep an eye out for the charges:

When you opt for a loan, be aware of the interest rates and charges. Understand the type of interest rate the lender is offering you. Charges like prepayment penalty, processing fees, and late payment fees can add to your costs. A high processing fee can add to your total loan cost.

• Do not bite off more than you can chew:

Only opt for an amount you can afford, not what you are eligible for. First, take a call on whether the loan is an absolute necessity. If you are sure that it is, decide whether you will need a longer or flexible tenor. Then choose a lender who can give you that option. For instance, Bajaj Finserv has the option of flexi-loans. In these, the tenor is flexible and you can pay off the loan comfortably.

• Know your repayment options:

Lenders offer a plethora of repayment options. Make sure you know what your options are and if you can prepay the loan with minimal charges. You can also opt for flexible loans that allow you to pay only the interest. Some loans even offer EMI (equated monthly instalment) holidays. The repayment options available are the accelerated, the step-up and step-down, and the balloon repayment schemes. Pick an option that meets your needs. 

When something happens out of the blue and you don’t know how to pay for the costs, a loan like this can be a godsend. But you must be mindful of what comes with the personal loan for a medical emergency before opting for it. If you are planning to take one, Bajaj Finserv, a leading NBFC in India, offers personal loans for medical emergencies at attractive interest rates. Visit the Bajaj Finserv website for more information.