It’s no secret that healthcare has become quite expensive today. Forget about the treatments for critical health conditions, even small medical issues can make a big dent in your savings. However, that’s not the real problem. The real problem is when you the medical expenses become too high for you to handle. When this happens, what are you to do?
There are three possible ways to manage medical expenses:
If you already have an insurance cover, then you will be able to save some or all of the medical expenses depending on the cover limit. However, if your expenses exceed the insurance sum, then you may need to arrange the remaining amount through any of the next two methods.
A credit card is extremely useful when you are traveling and don’t want to carry a lot of cash with you, or want to enjoy special discounts and perks when shopping online, or even just to buy expensive items on EMI basis. However, you can also use a credit card to pay for urgent medical expenses, especially when you are having trouble getting a loan for low cibil score.
If your medical bills are not too high, then your credit card(s) will be able to cover them in most cases. However, if the total amount exceeds a few lakhs, then it may be difficult to cover it all without looking into personal loans.
When your medical bills are too high, then personal loans are your best bet. This is because these loans can be obtained for any valid reason, and healthcare is one of them. Also, there is usually a very high upper limit on the maximum amount you can apply for. That said, it still has some problems, which are:
Traditional personal loans can take up to a week or more for a lender to approve. That too if you are offering collateral such as your house, stocks, etc. Since medical expenses often demand urgency, this option may not work for you.
Difficulty in Approval:
If you need a loan for low CIBIL score then it can become challenging to convince a lender. This is because most of them look for a CIBIL score of 750 or more. If yours is lower than this, then you may face a lot of rejections, especially when the loan is unsecured (without collateral).
A much better way to get a personal loan is to approach an NBFC (Non-Banking Financing Company). This is because the new-age finance companies offer flexible loan products that come with numerous advantages, such as:
- Fast disbursals: A number of fintech startups offer instant loan disbursals. In fact, if you have the right documents, then you can expect to get your money in less than 15-30 minutes!
- Easy Process: Another major benefit of an NBFC is that their loan procedure is simpler and convenient. Most of them have their own apps which you can download on your smartphone to apply for the loan on the go and at any time of the day. The paperwork requirements and formalities are also way more lenient than the traditional lenders.
- Easy Repayment: Even the loan repayment is easier with an NBFC. This is because of flexible EMIs. In other words, you don’t have to pay a fixed EMI every month. Instead, you can increase or decrease the EMI amount from time to time depending on how much amount you are comfortable with.
To sum it up, personal loans are one of the best options for paying your medical bills. That said, you still want to be careful about a few things. One of these is your credit score.
Just like other types of loans, a medical loan also requires attention to detail. You must take utmost care to not delay a single EMI and repay the loan on time. This is because your repayment history plays the biggest role in your score calculation. You must also never apply for a loan at multiple banks at the same time because multiple inquiries for your credit report also affects the score negatively.