Don’t Have Insurance? Here’s How A Personal Loan Can Help

Personal loan is a good alternative to fund medical emergencies if you do not have health insurance. Read on to know how a personal loan can help at IIFL finance.

10 Oct,2022 10:45 IST 12 views
Don’t Have Insurance? Here’s How A Personal Loan Can Help

A big medical emergency can strike anytime and can decimate one’s finances. Although medical insurance is the best solution to protect oneself against such an eventuality, most Indians do not have one. Even if they have health insurance, the payout from the insurance company often takes a few days and sometimes weeks.

So, when an unforeseen medical expense hits them, people often find themselves unable to pay the hefty bills and are then forced to borrow from friends or family.

Similarly, many people don’t have adequate automobile insurance. So, if the bill to repair a car or a bike in the case of an accident is higher than the amount one can get through insurance, it can leave a big dent in one’s finances.

This is where a personal loan can become a saviour.

A personal loan is basically uncollateralized credit where a borrower does not have to pledge any asset to borrow money from a bank or a non-banking finance company (NBFC).

All one needs is a good credit history and a clean financial record to avail a personal loan easily.

Even if a borrower has a less than ideal credit score, she or he can get a personal loan, although at slightly higher interest rates.

Near-instant approval and quick disbursal in a matter of just a few hours make a personal loan a very convenient and one of the most preferred ways to manage expenses that an insurance policy won’t or can’t cover.

If a borrower applies for a personal loan from a bank or an NBFC, they need to fulfil the following criteria:

• They must be a citizen of India
• They should be between 20 and 60 years of age
• They should have a regular income, whether as an employee or in the form of business income

Application For A Personal Loan

Just as for any other personal loan, applying for a personal loan to meet medical expenses can be a breeze.

Application:

All that a borrower needs to do is to simply apply online on the selected lender’s website or app and fill out all the requisite details like name, date of birth, address, employment details, and bank account details.

While filing the application the borrower needs to submit basic know-your-customer documents like Aadhaar number, PAN number, income proof (if needed), and proof of address.

Assessment:

Once these documents are uploaded, the lender will assess the borrower’s creditworthiness on the basis of their credit history and CIBIL score and then make them a loan offer.

Disbursement:

Once the loan offer has been accepted by the borrower, the money is disbursed to their bank account within a matter of hours.

Repayment:

The repayment process is also very simple, and the loan can be paid back along with the interest online in monthly instalments. These days, lenders also give their clients an online account where they can easily see their repayment history and schedule.

Interest Rate:

The better the borrower’s CIBIL score and credit history, the better the interest rate they will most likely be offered.

Conclusion

A personal loan is a good alternative to fund medical emergencies if you do not have health insurance. You can fund medical emergencies with no restrictions. A personal loan can also be useful if a borrower doesn’t have adequate insurance to repair their two- or four-wheeled vehicle.

In India, dozens of banks and scores of NBFCs offer personal loans though many lenders have onerous requirements and follow tedious processes.

IIFL Finance, one of India’s biggest NBFCs, offers a fully online process to apply for a personal loan that will allow you to fund hospitalisation costs, paying for surgeries or post-operative therapies as well as for procuring medicines or any other medical aids or equipment needed to help a person recover.

IIFL also offers flexible repayment tenors so that you can repay the loan and interest without stretching your financial resources while you or a family member are in a medical emergency or any other purpose.

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