How Do I Qualify for a Medical Loan?

By August 10, 2020 October 23rd, 2020 Personal Loan

You may be facing a medical emergency or want to book in for knee surgery, dental work or another operation. Either way, unless you can receive free public hospital treatment or have private health insurance that will cover most of the cost, you might find you need to borrow money to finance whatever care or procedure you require.

One option would be to use a credit card to cover expenses, but if you don’t have one (or your card is maxed out), you’ll want to consider applying for a Medical Loan. Although getting into debt is never ideal, your health is priority number one. Without it you can’t really do anything. Once you’ve recovered you’ll be able to focus on repaying any borrowed funds.

Is There Such a Thing As a Medical Loan?

There are some Australian lenders that do offer loans specifically designed for medical purposes, whether it be to cover the cost of a hospital stay, a surgical procedure or a medical emergency. Lenders that offer medical-specific loans expect the borrowed funds to be spent on something medical-related.

More often than not, the type of finance many would seek to cover medical expenses would be some form of Personal Loan, where the main purpose for the loan is to offset medical costs. When you apply for a Personal Loan, you need to nominate what you plan to use the funds for. In this case, some form of medical situation.

Cosmetic surgery is also considered a medical procedure and could qualify for a Medical Loan.

What Documents Are Required for Medical Loans?

No matter what type of finance you apply for – Home Loan, Car Loan, Medical Loan, Personal Loan – you’ll need to be able to prove your identity. By Australian law, that’s mandatory. Generally, you’ll have to be able to provide 100 points worth of ID, which could be made up of a driver’s licence, passport and/or birth certificate.

For most loans, you’ll need to be able to show proof of income too. If you’re employed, usually this will mean uploading or presenting your two most recent payslips. For anyone self-employed, you’ll either need documentation from your accountant, or recent copies of your bank statements.

Your lender may request additional documents, depending on your personal circumstances.

What Is the Procedure Of a Medical Loan?

In most instances, particularly if you opt for a private lender, you should be able to fill out an application online, which is really convenient because you don’t even have to leave your house (or perhaps the hospital) to apply.

Once the application form has been completed, you’ll either be asked to upload scanned documents of your ID and income proof, or be requested to forward them within an email.

Once your application form and documents have been submitted, it’s then a matter of waiting for it to be processed and a decision to be made. But don’t worry, in most instances if you’ve supplied all the necessary documents, this is processed quickly.

Part of the process is to do a credit check on the person applying for the loan to see if they’re a risk to lend to. In some cases, employers may also be contacted to verify the applicant’s employment and salary details.

Banks often take their time when it comes to processing loan applications, so if you’re in a hurry to get the money you need for your medical procedure or emergency, you’ll be better served approaching a private lender for medical finance.

The reason being is that private lenders are all about processing and approving applications very quickly, often on the same day you apply. You could apply in the morning and have the money you need deposited into your account by the end of the business day.

Where Can I Get a Medical Loan At Reasonable Rates?

If you need a Medical Loan and don’t want to wait forever to get your application approved, then talk to the team at Cashify. We are a private lender that specialises in fast cash loans and Medical Loans, along with other types of Personal Loans and Pawn Loans. Our interest rates are very competitive with rates from as low as 8.5% pa on our premium loan options. Get in touch 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.