Personal Loan to Pay Medical Expenses

13 Jul 2020

More than 26% of people have already taken personal loans to meet their medical expenses till date. More than 44% of people in the US have divulged that they are unable to pay for $400 emergencies. As per researches by various agencies, 6.3 million adults in the country took personal loans to pay off their medical bills. The total amount borrowed is approximately $6.12 Billion (Source: Finder.com)

Medical emergencies are unwanted and also unavoidable. People do opt for Medisave schemes and health insurances to meet such medical emergencies, but there are certain medical expenses which cannot be covered by either of these. For example, critical illness and certain surgeries do not fall under these policies.

What happens if such a condition arises? Well, the banking and financial institutions have come up with myriads of financial products that can solve the purpose. Personal loans are the most popular form of financial aid that people aim for in case of medical remedies. It comes with minimum or no liability and gets processed faster, thus making it easy for the people seeking help for medical expenses.

People opt for the following methods to pay for medical bills – personal loans, credit cards, short-term payday loans and loans from family/friends. Out of it, more than 24.5% people took personal loans to finance their medical bills. 12.2% of people in the US are without medical/health insurance who have only one way of paying for the hefty medical bills, and that is personal loans.

There are various personal loan providers in the market, make sure that before applying you make a thorough analysis of the interest rates, repayment period, other charges if any and then choose the one that suits you the most. If you want, then you can also calculate the EMI using the personal loan repayment calculator. Most of the websites and loan providers offer this facility on their website.

What are the benefits of personal loan for medical expenses?

Ever-rising healthcare cost has become a primary concern for most of us. As compared to the earlier time, the healthcare cost has gone high, thus making it difficult for many to match up to the expenses. Medical expenses have been a source of constant headache for American consumers for ages. According to a report by the Consumer Finance Protection Bureau, 20 % of the credit reports of Americans show at least 1 medical collection and on an average .consumers owe $600 in medical dues. The Affordable Care Act has not had a good impact either, contrary to common beliefs.  It has increased the worries of an average consumer by raising co-pays and deductibles, meaning that a significant part of their medical claims are not covered by their health insurance plans.

Expectedly enough, it could be one large and unexpected medical bill that puts people in the hole. For many consumers who may be struggling temporarily with medical expenses in case of a medical emergency, a personal loan may be their best option to prevent further deterioration of their finances.

These are unsecured loans that are not protected by any collateral and are not time-consuming. Thus, it becomes easier for a person to avail personal loan to meet the medical expenses.

Here are some of the benefits of personal loan for medical expenses:

  • There is no need for collateral- Personal loans are unprotected, it means that one doesn’t need to submit any asset or security, nor does it require a guarantor. People having an excellent credit rating and reports can apply for the same.
  • Quick and simple procedure- Personal loans are easy to apply. They have hassle-free application procedure and get processed quickly. All you need to have is a good credit score and credit report. The loan disbursement takes places in 4-7 days of application submission.
  • Easy Repayment options- Personal loan gives the liberty to choose loan repayment tenure. Choosing the tenure for loan repayment gives the customer the leverage to decide his repayment based on his financial capability.
  • Multi-purpose loan- Personal loans for medical expenses have no restriction on its usage. Irrespective of the type of medical expenses you want to meet, personal loan gives you the leverage to do the same. You can use this amount for surgeries, full payment of expensive treatments, etc.

Steps You Should Take Before Applying for a Personal Loan to Pay Medical Expenses

People will tell you that resorting to the method of debt in order to get over a financial issue can be risky at times. But it’s not, if you do due diligence and apply a great deal of thought before doing so. Before applying for a medical loan, you should try certain avenues and go through the following steps-

  1. Confirm if your medical bill is accurate enough: Some medical bills are incredibly inaccurate and often includes charges for services that were not provided or duplicate services. Make sure review and dispute ( if required) each of these charges with your provider.
  1. Ask for financial assistance: Some private medical providers may provide financial assistance (such as installment plans etc), even though they are not mandated or obliged to do so. If you happen to get such an assistance, accept it only after reviewing the terms and conditions carefully. If such an assistance comes up with an exorbitantly high interest rate or an uncomfortably short installment period, you would be better off with a medical loan.

    Some non-profit providers are obliged to assist you if you are going through a financial hardship. In certain cases, you may also end up getting an installment plan on 0% interest. You may also request your provider to pay about 60% of the bill amount upfront and pay the rest on easy installments.
  1. Scrutinize your medical insurance coverage: Some insurance companies have a habit of applying unfair means while crediting full and proper coverage to you and they deviate from the agreed terms and conditions. In such situations, you may end up paying more in premiums than you can actually save, should a medical exigency comes your way. Review your insurance coverage properly before you commit.

Medical emergencies can arise at any moment, you may have taken health insurance or would have saved money for the same, but sometimes this amount may not be sufficient. In such cases, you can opt for a personal loan that will help you pay your medical bills with ease. To avail a personal loan at competitive interest rate, fill out this blog form.

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