Medical emergencies can come at any time and if you hadn't been proactive on the front, you might find yourself in a really tricky situation. So, to come to your rescue have come certain NBFCs and fintech players with No-cost EMIs for healthcare needs that provide an alternative funding tool which seems to be less expensive than usual personal loan product available at a higher interest rate of 15-25%.
General Features of No-Cost Medical Loan
Ticket size for such a loan ranges between Rs. 20,000 and Rs. 5 lakhs with a tenure of 6 months to 3 years time.
The loan type that is specifically for catering to your emergency medical expenses provides the sum directly to the hospital. But for the same, the borrower needs to produce the hospital bill.
Lower Interest rate: Some of the new fintech companies providing easy medical loans offer funds at a lower cost of 6-7% per annum for tenure over 12 months.
Easy and Fast Disbursement: The funds via the medical loan are approved as well as disbursed in 2-3 days time which in the other conventional financing routes considerable time.
No-Cost EMI Medical Loans: How do these work?
In it the borrower needs to pay 2 EMIs on an upfront basis, say for eg: If the tenure is for 6 months and the amount of loan is Rs. 60,000. Then, the borrower ought to pay a EMI which comes out to be Rs. 10000 for two months in advance.
The interest part is borne by the hospital as subvention fees for patients which is usually 7-8% of the loan amount. So there is in a literal way no associated cost apart from the loan processing fee and other similar small charges.
Companies offering these no-cost EMI Medical Loans
Bajaj Finserv, Arogya Finance and other small fintech companies are expect to follow suit with similar offerings