What is the interest rate on a medical loan?

A medical loan is another type of personal loan. Therefore, personal loan interest rates are applicable for medical loans too. However, loan aggregators help you with the best repayment options for good 5 years. Explore Buddy Loan in order to reap more benefit for a medical loan.

Personal loan policies and procedures also apply to medical critical care loans. But there is a difference. Unlike personal loans, medical loans are disbursed faster. Usually from 5 minutes to 24 hours.

Interest rates

·         Interest rates are starting as low as 11.99% p.a.

·         High interest is levied on borrowers who cannot furnish adequate documents such as PAN Card, AADHAR card, Salary certificates and who don’t have a good credit score. It is based on the banks discretion whether to give the medical health checkup or hospitalization loan or not.

·         Better option would be to call the bank directly and check with them.

What are no-cost equated monthly installments medical loans

No-cost EMI consumer items personal loan is popular with the middle class demographic segment. This medical emergency loan product is inspired from it.

·         The interest cost is borne by the medical treatment center. The borrower only has to pay towards the principal amount. For example, for a medical loan of Rs.1,20,000, the borrower has to pay Rs.10,000 for 12 months.

·         The hospital will pay a subvention charge which is a percentage of the medical loan amount to the lending institution.

What could go wrong with no-cost EMI hospitalization loans?

·         The hospital could raise the medical expenses to make up for the subvention fee that has to be paid to the lending bank. For a treatment cost of Rs. 1,20,000 the hospital could charge Rs.2 lakhs.

·         Part of the profits realized from over-charging the patient can be paid as subvention fee to the lending institution. This still leaves the bank with a profit.

Doing the math before going for a no-cost EMI medical loan

·         Compare treatment prices across different hospitals. Read reviews from patients of hospitals. Ask around.

·         No private hospital will operate on a social-service philosophy. Therefore, even after paying the subvention fee, the hospital will still look to make a profit. Look for an ethical hospital where one can expect the hospital to make a nominal profit which is not burdensome on the borrower.

Conclusion

Check on bank product aggregator sites the different terms & conditions, tenures, rates of interest, documents required etc and such details before making an informed application. Call up your bank and ask them to guide you. Try to steer clear from no-cost EMI loans as much as you can.