Tanmay Seth, a software engineer in his early 30s, thought he had his finances under control. After all, he had savings, two houses, and medical insurance for his whole family. But then Tanmay’s wife was diagnosed with a medical condition that his insurance did not cover. He was in a fix. How could he pay his wife’s hospital bills? Should he sell his second apartment? Should he charge it to his credit card? Should he consider the hospital’s own EMI repayment options?
Tanmay chose the best alternative—he applied for a personal loan. His wife was able to get the best medical attention and recovered. Tanmay himself found that he could repay his medical loan with no inconvenience.
Many people these days are choosing a personal loan to take care of medical expenses. There is good reason for this. Personal loans are a safer and more reliable option during a medical emergency. Here are five reasons a personal loan is your best bet when you or your dear ones are facing huge medical expenses.
1. Personal loans are easy to get: In a medical situation, you do not have the time to arrange for funds. If you do not already have a credit card, there is no opportunity to apply for one. That would mean wading through massive amounts of paperwork. Liquidating assets could take days or weeks. On the other hand, loan providers make personal loan applications simple and quick. You can even apply online.
2. Personal loans are flexible: Many hospitals offer repayment schemes. So, you can pay your bills in instalments. But the repayment is on the hospital’s terms, not yours. With a personal loan, you have far more freedom to choose the amount of EMI and the tenure. This way, you can make sure that the new loan does not put your family’s finances in any stress.
3. Personal loans are cheaper: Personal loans do have interest charges. But these are much lower than the rates charged by a credit card loan. The repayment schemes offered by hospitals are also far higher than that of personal loans. Additionally, in a personal loan you have some room to negotiate. The interest cost can come down if you have a healthy credit rating. A good previous loan relationship with the lender would also help.
4. Personal loans are not capped: It is difficult to predict how high your hospital bills will run. It could be stressful to find that you have maxed out your credit card. Then you will have to find another source of money. But you can rely on a personal loan to fund whatever amount you need.
5. Personal loans are easy to repay: They give you flexibility on the EMI amount and the tenure. You can even prepay the loan. Most loan providers allow penalty-free prepayment after a certain number of EMIs.
Health problems visit everyone at some time or another. In such troubled times, you would want to focus on supporting your family. You should not have to sweat about the financial aspect. The option of a personal loan lets you do just that.