The Coronavirus pandemic has taught us the importance of saving money so that one can address a health or any other personal emergency. During the pandemic, we have seen that the cost can go up significantly not only during treatment of the disease but also for treating post-Covid complications.
Most people think that having a medical insurance is sufficient during such medical emergencies. While health insurance is necessary, in some cases,it is not sufficient,and such people will be forced to run from pillar to post to arrange for the remaining funds.
Whether you have insurance or not, if you need emergency funds, the most important thing is to choose a route that allows you to access funds quickly. Here are various loan options for a medical emergency.
1. Personal loan for Medical Emergency

When it comes to our lives or those of our loved ones, we
do not want to leave any stone unturned in ensuring that the best
medical facilities and treatment are provided. However, during
medical emergencies, our financial circumstances often play a key
role in determining the quality of treatment. This is where the personal loan for
medical emergencies comes into play.
A personal loan
can help you pay hospital bills along with allied costs during a
medical emergency. This may include the cost of hospitalization,
medical expenses, rehabilitation, recovery, equipment costs, hospital
bills, nursing care, etc.
2. Fintech Loans
Those who find it difficult to get a credit card or bank
loan can go to fintech lenders. These businesses often offer loans
to those with low credit scores or CIBIL score.
Fintech companies are generally less stringent than major banks and
NBFCs when reviewing personal loan applications. These companies may,
at times, approve loan applications rejected by major banks and NBFCs
due to low credit scores or risky credit profiles. However, given the
higher risk of default, fintech usually charge a higher interest rate
on loans.
It is advised to choose this funding route only if
standard borrowing options do not work for you. When choosing a loan,
it is best to compare the interest rate and choose the lender that not
only has a low-interest rate but also low or zero prepayment or
foreclosure charges, so you can close the loan whenever you have
enough funds.
3. Credit Card Loan
For those with a credit card, the quickest way to finance
a medical emergency would be to swipe their credit cards and pay off
the cost incurred. Paying all the credit card debt by the due date
will save you from penalties, late fees, and interest costs, and it
will also preserve your credit score.
However if you are
not able to make your payments on time, credit card debt can be one
of the costliest borrowing options as annual interest rates can
range from 25% to more than 50%. Hence, borrowing through credit
card must be done with utmost care because there must be enough cash
flow with you to pay off the debts and the funds must be available
before the repayment period because if the debt is not paid on time,
it could lead to higher penalties and interest.
The good
part is that a credit card can give you an interest-free credit
period up to some days, after which you can repay the amount from
your own sources or after receiving a refund from the insurer.
However, if you cannot pay the full amount by the due date, it
is best to convert your payments into EMIs. Credit cardholders who
cannot pay the full amount on the due date can convert all or part
of the bills to interest-free EMIs as per their ability to pay.
In short, for those with a credit card, the quickest way to
finance a medical emergency would be to swipe their credit cards and
repay the amount by the next due date. Paying all the credit card
debt before the due date will save you penalty and interest and will
preserve or improve your credit score.
4. Loan Against FDs
In case of a medical emergency, many investors would
close their long-term FDs and if they did, they would lose
interest and pay early withdrawal fees. Instead, if you have a
bank FD locked with a good interest rate, it is best to borrow
funds against that FD. Each lender has its own rules regarding how
much of the FD-locked amount they can lend and at what cost.
5. Loan Against Gold
Those who cannot get a personal
loan for medical emergencies can pledge their gold jewelry or
other forms of gold to pay medical bills. Gold loans are mostly issued
on the same day.
6. Loan Against Shares
Your investment in stocks, bonds, life insurance
policies,etc. can also be used to get a loan. You can go to a bank
where you have a long-term relationship to get a loan on these
investments by pledging your investments with the bank.
7. EPF Advance
You can get a non-refundable advance on your Employees'
Provident Fund (EPF) up to one’s 3-month basic salary or 75% of the
total credit balance of your EPF contributions.Earlier EPF used to
have a 20-day prepaid delivery window which now has been reduced to
3 daysin recent times, with the use of technology.
Although
many experts do not recommend spending your retirement funds in an
emergency, if you do not have an alternative, this may be the last
resort.
The cost of treatment has increased by leaps and
bounds over the past few years. Hence, it is best to keep some
liquidity for such unforeseen events, in addition to your medical
insurance. However, if these options are not available, or if they
are not sufficient, you need to explore other funding options to
tide over your requirements. Apply Now for a personal
loan for a medical emergency with Poonawalla Fincorp in just a few clicks.
In times of emergency, obtaining money should be a hassle-free affair. We offer flexible payment options for all cosmetic, medical, and dental procedures. With us, you can easily relax knowing that your medical expenses are covered. A Medical Loan will take the weight off your shoulders with competitive interest rates and payment plans designed to suit your needs and get the best treatment for your loved ones or yourself without worrying about medical bills.