Life is highly unpredictable; it throws us into unforeseen and unfathomable situations when we least expect it. Take, for instance, the Covid pandemic – a pandemic that left the entire world gasping. Not just did this pandemic showed us how fickle life can be, but also reinstated the importance of being financially prepared in such circumstances.
Most of us buy out a health insurance plan and consider ourselves financially prepared to handle a medical emergency. We forget that the rising cost of healthcare treatment and drugs in India by each year may make it challenging for the medical insurance plans to meet the mounting costs. In such situations, it is wise to keep our savings untouched and turn to a personal loan for medical emergencies to ensure instant access to funds and timely medical attention for our loved ones.
A medical emergency loan offers what traditional health insurance can’t cover – expenses over and above the hospital bills, rehabilitative therapies, expensive drugs, and to make up for the loss of pay during the illness of a family’s breadwinner. However, before applying for a medical loan, it is important to ask yourself a few questions.
What to Ask Yourself Before Applying for a Medical Loan?
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- Do I Need This Loan?
Though this question may seem obvious in the first instance, it’s quite imperative to ask if you really need this loan. Be critical of your financial needs and come up with a well-thought-of honest answer before applying for a personal loan for a medical emergency. Having a deeper and detailed introspection about this will ensure that you’re making the decision of availing of a personal loan after much thought without getting overwhelmed by the urgency of the situation.
Also, during such moments of vulnerability, you might get tempted to avoid taking a personal loan and exhaust your savings instead. This, however, can have a detrimental effect on your finances in the longer run. Gather your composure and keep in mind that repaying a personal loan over time in EMIs is a far better proposition than liquidating your assets or investments. Dissolving your investments before maturity will make you lose out on the interest in the long haul.
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- How Much Personal Loan Amount I Would Require?
The amount of loan to be applied for directly affects your loan payment schedule ahead. If you apply for an amount less than what is required to cover your expenses, you might feel the need to dig into your savings which is not advisable. On the flip side, if you end up borrowing more than you need, you might struggle with the loan repayment in the future. Sit down and carefully assess your expenses and the loan amount you’d need to take care of them. Apply for a medical loan with just the right amount to keep you on track and unburdened of EMIs.
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- How Much Loan EMI Can I Afford Each Month?
Deciding how much loan amount you need to borrow is also affected by the loan repayment you can afford to make each month. The best way to address this concern is by making a monthly budget. A financial budget helps you keep your spending under control week-by-week while also helping you save some for a rainy day. By simply looking at your budget you can easily tell how much loan EMI you can shelve each month without affecting your quality of life negatively. It is better to do the simple math than straining your monthly budget at every repayment. Refer to a personal loan EMI calculator to pre-empt your loan EMI based on the loan amount, tenure, and rate of interest.
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- Till How Long I Can Repay the Loan?
It’s crucial to have clarity of the loan term offered and the loan term you are comfortable with. This will help ensure that you’re opting for the loan term after deliberate thought. While you can always use an EMI calculator to know your estimated EMI, it will also help you decide your chosen loan tenure based on the EMI amount you can conveniently pay each month. If you opt for a shorter loan tenure, you can save towards the interest payment but a higher loan EMI is sure to dent your monthly budget severely. On the flip side, a longer loan term will keep you debt-ridden for a long time. Opt for a loan tenure that hits a sweet spot syncing the loan EMI and repayment period.
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- Am I Approaching the Right Lender?
It’s important to know your lender well before closing the deal with them. Make sure your lender has a transparent loan application process, clarity on processing fees, prepayment charges, document requirements, and so on. Select a lender that offers online personal loans for medical emergencies at an affordable interest rate with minimal documentation and no collateral. Check for positive reviews, client base, and trust in their website to evaluate their credibility. Also, check their blog section to have all your personal loan questions and doubts answered by the experts.
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- Is My Credit Score Enough for the Loan?
Your credit score is a determining factor in your personal loan approval, rate of interest, and loan term. If you have a healthy credit score of 725 and above, availing of a personal loan at a competitive rate of interest shouldn’t be a concern for you (provided you meet the other eligibility conditions). While, on the other side, a lower credit score may get you a personal loan approval but you’ll be charged a higher rate of interest. Before applying for a personal loan, quickly check your credit score to have a clear understanding of your financial health.
Before applying for a medical emergency loan, make sure you’ve asked yourself the above questions and have clear answers in your mind. This is crucial to set the right foot forward in a trying situation and not get overwhelmed with the urgent need for funds.
A personal loan for a medical emergency comes as a financial saviour in times of instant cash needs without any hassle and lengthy paperwork. Place your trust in Clix Capital, your preferred online lender, with personal loan approval in medical emergencies and get instant approval and quick disbursal of funds to help you manage the treatment costs of your loved ones.
Apply for a personal loan for medical emergencies and get a better grip of the financially-challenged situation now!
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