Medical Loans in India: Your Complete Guide to Financing Healthcare (2024)

Medical emergencies can be terrifying, especially if you are not prepared. Many people are investing in medical insurance but a significant number remain uninsured, particularly for emergencies. Additionally, there are instances when insurance does not cover certain medical expenses. 

In challenging times such as medical emergencies, personal medical loans offer a means to ensure the well-being of you and your family, regardless of circumstances. 

What is a Medical Loan?

A medical loan is much like a personal loan as it is meant to cover the expenses related to healthcare like medications, surgery, transportation, and others. Since a medical loan is taken on an emergency basis, the lender should have a good credit profit and he or she must be willing to repay the amount at a higher interest rate.

What are the Types of Medical Loans Available in India?

A medical loan in itself is an unsecured loan that falls under the personal loan category. Various types of loans are available under the medical loan subcategory itself but none of them are for individuals looking to invest for their future unforeseen medical emergencies.

Yet, we will discuss the names of all types of medical loans or healthcare industry loans that are available in India.

• Working Capital Finance - Hospitals must manage assets and liabilities to ensure continued service and profitability, including payment, salaries, buying consumables, repair and maintenance. Working capital financing provides cash credits, overdrafts and demand loans for daily operational requirements.
• Merchant Establishment - Overdraft (ME-OD) Service - Healthcare institutions can use overdraft limits based on credit card swipes for working capital needs.
• Infrastructure Loan - Healthcare businesses need funds for expansion and infrastructure, including new premises and existing centre expansion and for balance transfer for working capital or current term loans.
• Medical Equipment or Asset Finance -  This loan helps healthcare organizations buy various assets and medical equipment like colour dopplers, CT scanners, X-ray machines, and sonography machines. Up-to-date equipment is important for delivering quality patient care. 

Institutions Offering Medical Loans in 2024

Although there are several institutions (including both banks and NBFCs) that are currently offering medical loans under the personal loan category, we have only provided the top and renowned institutions below. Kindly note that the interest rates provided below are subject to change and one must consult the official website of the respective institution for a more updated interest rate detail. 

Institution Type	Name of the Institution	Interest Rate Per Annum
Bank	Punjab National Bank	8.9% to 14.45%
	Axis Bank	10.49%
	IndusInd Bank	10.49%
	HDFC Bank	10.50%
	Bank of Baroda	10.5% to 12.5%
	ICICI Bank	10.75%
	Kotak Mahindra Bank	10.99%
	State Bank of India	11% to 15%
	Canara Bank	13% to 14.15%
NBFC	Paisa Bazaar	10.49%
	Tata Capital	10.99% to 19.75%
	Fullerton India	11.99%
	Indiabulls Dhani	11.99%
	Bajaj Finserv	13%
	Money Tap	13%
	Paysense	16% to 36%

 

Benefits Of Taking A Medical Loan

• Flexible Loan Tenure: A medical loan from Investkraft has a flexible payback period of 1 to 5 years and a sizeable loan amount. Additionally, you can get an amount ranging from Rs 50,000 to Rs 40 lakh, which can assist you in meeting your financial obligations in the event of a personal emergency.
• Quick Amount Disbursal: Investkraft authorizes urgent medical loans in no time and disburses funds one working day after receiving the required documentation.
• No Restrictions on End Use: Any urgent costs, whether medical or not, can be covered by an emergency medical loan.
• Easy Monthly Installments: There is less pressure to repay the loan in full because you may arrange your EMIs and loan terms based on your monthly income. Loan terms range from 12 to 60 months, and the inexpensive EMIs make it simple on your wallet.
• Minimal Documentation: Since there is little documentation involved, applying for a medical loan or a personal emergency loan from us is a stress- and hassle-free alternative. You may always opt to apply online.

Factors to Consider Before Applying for a Medical Loan in 2024

If you want to avail urgent funds for a medical emergency, there are several lenders available to provide the best offers. However, the decision to choose a particular one shouldn’t be taken in a hurry. Instead, one should check all the major factors before deciding on a specific medical loan provider.

• Interest Rate: Since you will be taking a medical loan to cover your medical expenses, you should be ready to repay the amount at higher interest rates. But that interest rate should be like that you can repay the amount. The best way to confirm this is to check the interest rates of different medical loan service providers and compare them against each other. Now find out which offers match your loan repayment capacity better.
• Affordability: Before applying for a medical loan, it is smart to verify and compare the EMIs of several banks and financial organizations using a medical loan EMI calculator. The loan amount, interest rate, and loan term will all affect the EMI that must be paid.
• Credit Profile: The interest rate applied to your medical loan may vary depending on your credit score. With a high credit score, you may bargain with your lender for a lower interest rate. Therefore, it is crucial to verify your credit score before asking for a loan.
• Documentation: Make sure to be aware of the paperwork that the bank or other financial institution needs to authorize the loan. Aadhaar cards, driver's licenses, passports, and PAN cards are the most often requested proof of address. To obtain evidence of income, bank statements, pay stubs, or tax returns would be needed.
• Disbursal: One most important things to check is the time taken by the medical loan service provider for loan disbursal. As healthcare is an emergency, the lender should be extremely prompt when it comes to approving and disbursing the loan amount.

Applying for a Medical Loan in India: Step-by-Step Process

Medical emergencies are always stressful and dealing with the financial burden only adds to the anxiety. However, a medical loan can provide the necessary assistance to cover the costs of treatment. Here is a step-by-step guide to applying for a medical loan in India. 

Stage	Particular	Details
1	Check Eligibility	You must fall within the age range of 23 to 65 to meet the requirements of most lenders You must have a stable income either as a salaried employee or as a self-employed individual. A strong earning potential is necessary for this eligibility requirement Having a high credit score, usually above 750, provides you with increased chances of approval and ensures a more favourable interest rate
2	Choose a Lender	Investigate various financial institutions and online lenders that provide medical loans Compare interest rates, eligibility criteria, repayment tenure, loan amounts offered and processing fees
3	Gather Documents	You need to submit any of the following documents for KYC (passport/driving license/voter ID/PAN card/aadhar card) Provide the bank statements for the past 3-6 months Provide your salary slips for the last 3 months if you are employed Include medical documents such as cost estimates and doctor’s prescription, if available
4	Apply for the Loan	Many lenders offer online application options and some also provide the possibility to visit a branch in person Many lenders offer online application options and some also provide the possibility of visiting a branch in person Upload all the necessary documents
5	Loan Approval and Disbursement	The lender will carefully review your documents and evaluate your creditworthiness Once your loan application is approved, the funds will be deposited directly into your designated bank account

 

FAQs

Q. How Can I Apply for a Cash Advance Loan Online?         

- For more information about applying for a medical loan for an emergency, go to Investkraft’s website. You may also complete the same task using Investkraft’s mobile app.

Q. What Requirements Must One Meet to Qualify for a Medical Loan?   

- For further information, please see the 'Eligibility Criteria' section.        

Q. What Purposes do Medical Loans Serve?

- Any urgent financial necessity may be covered with a medical loan. You can use it to cover unforeseen medical expenses.

The Conclusion

Though getting a medical loan in the case of an emergency is not a big thing these days, it is necessary to choose the right medical loan service provider that can provide the loan amount quickly, easily, and affordability. The best way to ascertain this is to do a thorough comparison of different medical loan service providers and choose the one that matches your needs the best.