Table of Contents
Introduction
Medical emergencies can come unannounced and often require immediate financial support. While your primary article explains what a medical loan is, this guide goes a step further — it shows how to choose the best medical loan based on interest rate, approval speed, documentation, and more.
Whether you’re opting for surgery, treatment, or emergency hospitalisation, this post will help you make an informed decision.
Understand Your Medical Loan Requirement
- Before applying, ask yourself:
- How much money do I need?
- How soon do I need the funds?
- What will I use it for?
- Can I repay the loan in 6, 12, or 24 months?
Example:
Priya needed ₹2,00,000 for her mother’s gall bladder surgery. She opted for a 12-month EMI plan with a digital NBFC offering instant approval.
Compare Interest Rates Of Medical Loan
- Interest rates typically range from 10% to 24% per annum, depending on:
- Credit score
- Income
- Lender type (Bank vs NBFC)
- Loan amount
Check the Eligibility Criteria
- Most lenders require
- Indian citizenship
- Age: 21 to 58 years (salaried) or up to 65 (self-employed)
- Stable monthly income (₹15,000+)
- CIBIL score: Minimum 650+
- Documents Needed:
- PAN card
- Aadhaar or passport
- Salary slips or ITR
- Bank statement – last 3 months
Compare Processing Time
Time is critical in health emergencies. Choose lenders with:
- Instant approval (within minutes)
- Same-day disbursal
- Fastest Options:
- Digital NBFCs like MoneyTap, KreditBee, CASHe
- Pre-approved offers from your bank
Look for Pre-approved Offers
Check your SMS or email inbox for “pre-approved medical loans” from your bank. These offers often have:
- Lower interest rates
- No documentation
- Immediate disbursal
Understand Repayment Flexibility
- Choose a tenure that fits your budget.
- Short-term (6–12 months): High EMI, less interest
- Long-term (24–60 months): Low EMI, more total interest
- Some lenders offer flexi loan options: Pay only interest as EMI and principal later.
Bonus Tip: Always check if there are prepayment or foreclosure charges. Some lenders charge 2–5%.
Read the Fine Print
Always read the full loan agreement. Look out for:
- Processing fees (1%–3%)
- Insurance bundling
- Prepayment penalty
- Late payment fee
- Hidden service charges
Example:
Ravi took a ₹1 lakh loan from XYZ NBFC. The EMI was affordable, but hidden insurance premiums made the loan costlier than expected.
Look for Specialized Medical Loan Products
Some platforms offer treatment-specific loans like:
- Dental loan
- Fertility/IVF loan
- Cardiac surgery loan
- Cosmetic surgery loan
- These may have custom plans, lower rates, or direct hospital tie-ups.
Consider Zero-Cost EMI Plans
Many hospitals now tie up with NBFCs like Bajaj Finserv or HDFC for:
- 0% EMI schemes
- No credit card required
- Direct hospital financing
- These are great if you’re planning:
- Knee replacement
- Lasik surgery
- IVF treatment
- Dental or ortho procedures
- Caution: Always ask for the processing fee or any “hidden” costs.
Use Medical Loan Aggregators
Compare offers on trusted aggregators:
- Paisabazaar
- BankBazaar
- Bajaj Finserv Health
- Finserv MARKETS
- IndiaLends
Conclution
If anyone is planning to take out a medical loan or any other type of loan, it’s a good idea to consult a loan service advisor. They can guide you with the best options and provide up-to-date information, especially when loan rules or policies change. Nowadays, many loan consultancy services are
available in every city, so make sure to research carefully before starting your loan process.