Five reasons you should consider personal loan during medical emergencies

Medical emergencies can strike without a warning, forcing people and families into unexpected bills. From hospitalization expenses to prescriptions and surgical treatments, there's a possibility that these costs could overshadow one's savings and any health insurance that the person may have. In such a scenario, personal loans offer much-needed financial support so that you can navigate through difficult times without any stress. Here's a closer look at personal loans and how they might help during medical emergencies.

Understanding personal loans

A personal loan is a quick solution for your financial needs, where you have immediate access to the funds. It's well-known for minimum documentation procedures, rapid approval, and flexibility while being applicable in a wide variety of applications including medical crisis, education, renovation of homes, and a debt consolidation process. However, ensure you find a legitimate lender first and compare interest rates followed by checking one's possibility of making payments.

5 benefits of taking personal loan during medical emergencies

1. Fast access to funds: In case of a medical emergency, the timing is everything. Personal loans are meant to provide instant financial aid, and most banks and other institutions are now accepting online applications. After approval, they can disburse funds in hours or even on the same day, allowing you immediate access.

2. No collateral is needed: A personal loan is an unsecured loan, and you are not obliged to pledge any assets as collateral. This simplifies the procedure because you don't need more documentation, nor is your property at risk. You will find it to be a very excellent choice if you want your money right away, with no hassles whatsoever.

3. Flexible repayment options: Most personal loans have adjustable payback terms, ranging from 12 to 60 months. Borrowers can utilise online EMI calculators to estimate their monthly payments and select a tenure that best fits their financial condition. This flexibility makes repayment easier and boosts your confidence when applying for the loan. 

Borrowers also have the option to foreclose their loan by paying off the remaining principal in a single payment before the end of the loan term. While there is flexibility, borrowers must be mindful of EMI bounce penalty and foreclosure charges that a bank may levy.

4. Minimal eligibility criteria: Qualification for a personal loan usually only requires regular income and a good credit score. In addition, many banks offer pre-approved loans to regular customers, which requires even less documentation. Such ease makes personal loans ideal for crisis situations when there is little time and resources to squabble over.

5. Keep your savings: Your investments often are for long-term goals, such as purchasing a home, supporting schooling, or preparing for retirement. Personal loans can be handy in overcoming short-term financial crisis allowing you to keep your long-term investments and savings untouched.

Conclusion

A personal loan is a convenient option in case of medical emergencies as it allows instant access to funds without any collateral, along with flexible repayment alternatives.  However, this convenience comes at a price. Since these loans are collateral-free and require minimum documentation, they come with high interest rates, that can go as high as 20-25%. Hence, it's highly recommended to check and compare the interest rates before signing up.  A personal loan is certainly an immediate solution in a financial crisis but borrowers must do their due diligence.