A Medical Loan is a type of unsecured Personal Loan that helps you cover your healthcare cost. It can be used for any unexpected medical emergency or for paying for surgical, cosmetic, or dental procedures when you don’t have the necessary savings on hand.
These loans are a fast and simple way of acquiring cash to cover costs without depleting your savings or ruining your credit history. Some lenders provide instant loans for medical emergencies in Australia, but the repayment terms can be tricky. That is why it is essential to know exactly what you are getting into before signing on the dotted line.
This guide will provide all the information on when you should be taking out a Personal Loan for a medical situation, tips for choosing the right one for you, and more.
Who Are Medical Loans Best For?
In many ways, Medical Loans are similar to an unsecured Personal Loan so that the cash can be used for anything related to your medical needs.
Medical Loans should be taken out by individuals who need to undergo necessary medical, dental, cosmetic or surgical procedure which they cannot afford without a loan. It can also cover ongoing medication costs, specialist fees and even living or travel expenses of loved ones to support you during your medical requirements.
The Pros of Getting a Medical Loan
If you have been confused about whether to get a Medical Loan for your medical needs, it will help to consider the benefits and possible pitfalls of this type of loan. The most important benefit of Medical Loans is that they are instant loans fit for your medical expenses. These loans help you to pay for a procedure immediately if you are facing an emergency or a planned procedure. If you apply, and get approved, you can get cash transferred to your account in as quickly as 1-2 days, depending on your lender.
Moreover, it can improve your quality of life immediately, instead of having to wait to save up for the procedure. If you have excellent credit, you are likely to find a Medical Loan with lower interest rates, which can be cheaper than paying for the procedure with a cash advance or your credit card. Lastly, you don’t require any collateral to secure a Medical Loan, so you don’t risk losing any of your assets if you can’t repay the loan.
The Cons of Medical Loans
Unfortunately, individuals with poor credit scores might not find these types of Personal Loans for medical emergencies to be a favorable option. This is because they are often charged a higher interest rate, making the loan expensive to repay. This is why you should explore other options before getting a Medical Loan.
What to Consider When Looking for a Medical Loan
Now that you know what a Medical Loan is and what the pros and cons are, it might be time to look at some of the questions you should consider when choosing a Medical Loan.
How much interest will I be paying?
Ask your lender and identify how much interest you will be paying over the life of the loan. This will help you to be confident if you can repay the entire loan in the required timeframe.
Who will the money be paid out to?
Find out whether you will be receiving the cash in your account or if your healthcare provider will get it directly from the lender.
What are the payments and how often?
By figuring out how much your payments will be to pay off the loan and how regular these are (weekly, fortnightly or monthly), you can determine whether it fits in your budget or not.
Am I eligible for a Medical Loan?
Different lenders in Australia have different requirements for borrowers, so you will need to check with them. However, the typical requirements are:
- To be 18 years or older
- Be an Australian citizen or a permanent resident
- Have a regular and reliable source of income through employment
Now that you are aware of what to look out for with a Personal Loan for your medical needs, it is a good time to start considering lenders. Take the stress out of your medical bills today. If you are looking for excellent loan rates with flexible terms, instant cash transfers into your account and a quick online approval process, apply now for a Cashify Medical Loans today.
Disclaimer: Please note this content is of general nature only and does not take into account your personal objectives, financial situations or needs. For advice tailored to your financial situation, it is advised that you seek guidance from an accountant or financial advisor. The information contained in this article is correct at the date of publication.