When health troubles strike, the first thing that looms like a big black cloud of over everyone’s head is the financing. It gets even worse when your surgery is not covered within your medical insurance. So, how do you go about financing your surgery bills? While many opt for going with the spending through a personal loan or a credit card, there is a better alternative like a medical loan, which can get you covered at a time like this.
How do Medical loans work?
A medical loan is an unsecured loan that you can use for medical and surgery purposes. A medical loan is a personal loan but disbursed directly to the hospital for the sole purpose of the surgery or medical procedure rather than personal use.
One big benefit about getting a medical loan as against a personal loan is that you can avail it at 0% interest. After all, medical surgeries are something that can be a life-saving affair for people. And since it is not a luxury, why should one pay extra on the interest.
When you apply for a medical loan, the hospital in which you are supposed to go through with your surgery gets the lump sum, after you make a certain amount of down payment. You can choose the number of months to make the repayment as per your convenience. It’s usually quick disbursal and has minimum documentation needs.
How are credit cards different from medical loans?
A credit card is a line of credit from which you can borrow money at any time, depending on the credit limit that you get. It is known as revolving debt. Once you use up all the credit money up to the limit offered, you are supposed to pay the amount so that the credit limit gets cleared. If you miss that, you begin to carry a balance. You will have to pay interest on your debts. The danger with credit cards is that you can always spend more than your paying capacity and that can keep you stuck in debt. So, credit cards are the best when you are making small purchases which you can repay back within the stipulated time.
When is a medical loan better?
Medical loans are the better when you are talking about a surgery that might probably cost you more than just a few thousand rupees. If for instance, your surgery requirements are beyond 50 thousand to 1 lacs, you want to make sure that you take a loan where you are not further pushed into debt because of the high interest rates.
So, choose wisely when it is about taking a decision which will affect you not only now but in near future too.