Emergencies and accidents do not happen with prior notice. They often hit us when you are least prepared. This is certain. Another thing is certain that medical costs in India are rising at a fast pace.
Hearts bypass operation costs anywhere between Rs. 2 lakh to Rs. 5 lakh. More advanced surgeries like those involving neurological systems cost Rs. 10 lakh. When the hospital tells the patient’s family the money needs to be deposited within 48 hours, the race against time begins.
People often run pillar to post like sell jewellery, liquidate investments etc. to get some funds. But, the easiest and fastest way is to secure money is to avail a personal loan for a medical emergency.
A medical loan is given for various contingency situations related to health or any urgent medical needs. But do you need to be very rich to get such a loan? Do you need to own a house to get a medical loan? Can self-employed people get a personal loan for a medical reason? All these answers are related to medical loan eligibility. Let us take a detailed look at this topic.
No security, no guarantor: Given that a medical loan comes in the bracket of personal loan, it can be availed from different financial institutions. The rules and the eligibility criteria will differ. Top lenders like Tata Capital can be expected to have easier and more flexible eligibility norms. Since a medical loan is like any other unsecured personal loan for a medical emergency, there is no need to mortgage home asset. There is also no need to get a guarantor for the medical loan. So, if you meet the eligibility norms, it is much less hassle.
Simple norms: Your eligibility for a medical loan depends on three main pillars. Firstly, getting a medical loan depends on your salary/income bracket. Secondly, the organization you work for is also important. Thirdly, the lender wants to do an evaluation of your financial capability to repay the loan. If this evaluation turns out to be good, then getting this personal loan for a medical emergency is not a problem.
For salaried: Top financial institutions like Tata Capital have easy norms for potential medical loan borrowers. Since most people have a job rather than business, let us first have a look at the salaried person medical loan eligibility. You need to have an identity proof like Voter ID, Passport, or Driving License, etc. For address proof, you can either submit your Ration Card, Electricity Bill, Passport, etc. To assess your personal loan repayment capacity, you have to submit last 3 months bank statements. Salaried persons are also asked to provide a 2-year employment continuity document like a certificate, and some proof of income like salary slips for the last 3 months. See, it is so easy.
For self-employed, business persons: Medical loans are in demand from a certain set of people. There are many people in the work-stream who are starting their own office or pursuing business. These are called self-employed individuals, and people with businesses. Lenders are open to giving a medical loan to them.
While the identity proof, address proof and bank statements requirement are similar to those for salaried individuals, self-employed people seeking a personal loan for a medical emergency are asked for educational or business continuity documents.
To be eligible, you should give a highest professional degree for education and for proof of business continuation try to give either Trade License, or Sales Tax Certificate, Certified copy of Partnership Deed, Memorandum of Association, Article of Association and Board Resolution.
Just like any other personal loan, a medical low borrower who is self-employed or runs a business is also asked to give ITR filings like latest Income Tax Return (ITR) along with the computation of income, Balance sheet and Profit & Loss for the last two years. This has to be certified by a Chartered Accountant.
Loan amount eligibility: A salaried individual, with a minimum income of Rs 20,000 a month, should be eligible for a maximum medical loan of Rs 15 lakh. A self-employed professional, with a minimum annual income of Rs 2 lakh, can get a maximum medical loan of Rs 20 lakh. Any business person and a self-employed person can get Rs 15 lakh personal loan for medical purposes.
At Tata Capital, a medical loan is extended with minimal paperwork. Just because it is an emergency situation for you, it does not mean the interest rate is high. There is a humane face to lenders, and so interest rates are quite competitive and a flexi EMI payment structure helps you to pay back this personal loan for medical reasons when you want.