Medical emergencies may arrive at any time and can become difficult to address, particularly when you don’t have the required funds to manage them. With constant improvements in the healthcare infrastructure, the medical costs have increased. It falls on an individual’s shoulders to ensure the availability of sufficient funds to address such emergencies. For that purpose, several individuals turn to facilities like a medical emergency loan that can be availed of conveniently and timely to address medical exigencies.
Here are a few ways in which you can raise funds for a medical emergency –
- Loan against fixed deposits
One of the simplest ways to raise funds is via an advance availed against your fixed deposits. The credit amount, in this case, depends on the total deposited amount as financial institutions only sanction a share of that as a loan.
Therefore, even though the option is hassle-free and fast, it might not be adequate in all cases. Nevertheless, it is critical that before you avail of a loan against your deposits, you must go through the implications such credit will have on your FD.
- Loan against credit card limit
Another at-hand and simple funding option, if you are a credit card holder, is to avail of funding against your unutilised card limit and utilise it as a medical emergency loan. Similar to conventional loans, you can repay it in EMIs and unlike the aforesaid option, it does not involve leveraging a personal asset.
However, like a loan against FD, it might not be sufficient if you have a low unutilised balance on your card. Furthermore, such a credit facility typically entails a high rate of interest and every cardholder does not qualify for such a loan.
With the evolution of technology, several platforms have come into existence in the past few years that facilitate crowdfunding for medical emergencies.
However, such platforms are still in infancy and their popularity as well as reach are limited. Therefore, even though it is one of the most economical and smartest ways to raise funds for a medical emergency, crowdfunding in India still hinges on substantial uncertainty.
- Personal loan from a financial institution
One of the most popular funding options through which you can conveniently, timely, and adequately cater to your medical requirements is a personal loan for a medical emergency.
One feature that distinguishes this credit facility is the loan amount, which can be substantial and adequate. Financial institutions such as Bajaj Finserv provide up to Rs.25 lakh as personal loan, which is sufficient to meet an array of expenses related to an emergency.
Furthermore, these financial companies also bring pre-approved offers that expedite and simplify the loaning process. Such offers apply to a host of different credit facilities, including personal loans, business loans, and credit cards. You can check your pre-approved offer by furnishing your name and phone number.
However, before you apply for a fast personal loan for unforeseen medical expenses, ensure to vet a few ancillary factors such as your eligibility and EMI payable.
You can use a personal loan calculator as well to find out your instalments beforehand and weigh it against your affordability and prospective financial standing. That way, you can manage loan EMI efficiently.
In that respect, another critical factor you might consider before availing a medical emergency loan is the repayment tenure. In case of a personal loan, you can choose a tenure of up to 60 months as per your convenience. Remember, a longer tenure would result in smaller EMIs; however, it would also entail higher accrual of interest. Therefore, duly consider your income and prospective financial undertakings to find the right personal loan tenure that works for you.