Medical loan or personal loan, which will be better for sudden health-related expenses? Know the difference between the two

When there is a situation of sudden medical expenses and you do not have money, then which option do you choose between a medical loan or a personal loan?

When there is a situation of sudden medical expenses and you do not have money, then which option do you choose between medical loan or personal loan? Which option will be better for you? You should already know this.

What are medical loans?

Medical loans are prepared keeping in mind health related services. The interest rate in this type of loan is low. The terms of loan repayment are also convenient. This type of loan is given for surgery, treatment of any major disease, pregnancy treatment etc.

So that the family members of the patients do not face any kind of problem in medical emergency, many banks provide medical loans with low interest rates with less documentation.

Benefits of Medical Loan

· These loans are given keeping in mind many specific diseases and treatments related to health.

· In this, the loan taker has to follow easy terms for repayment.

· Many banks also provide delayed payment schemes so that patients do not have to worry about repayment before treatment.

· Many times such loans are made available ahead of time so that there is no shortage of money in case of treatment of the person.

Medical loans provided by banks

Medical loan starts at a very low rate in ICICI Bank, which is around 10.85 percent. The bank gives a period of 12 to 72 months to the loan taker for repayment so that the patients can be treated well and the borrowers do not face any problem in repayment.

Similarly, Kotak Mahindra Bank provides medical loan up to Rs 35 lakh at competitive interest rates with fewer documents. There is not much difference in the terms and conditions of medical loans in most major banks.

Main points of personal loan

Personal loan is also available very easily. The loan taker can use it for medical expenses as well as for any other requirements. These loans come under the unsecured category of loans, which are easily available by banks.

For this type of loan also, the loan taker does not have to wait much, and the process of documentation is also very less in this.

However, in medical loans, benefits are given in medical related loans, delayed repayment or long time is given for payment, however, these benefits are not available in personal loans. Personal loan gets paid in a few days.

The interest rates of personal loan depend on factors like your credit profile, credit score, loan history, your monthly salary, credit card usage etc.

What is the difference between medical loan and personal loan

· Medical loans are specially made for health related services. Whose repayment structure is sometimes very easy. In this, banks often charge low interest rates. Apart from this, many types of medical fees like surgery and post-surgery treatment are also covered under medical loan. Patients are not harassed much for the repayment of this loan, so they are given a long time by the bank or financial institutions.

· Talking about personal loan, it can be taken for any work, which may include medical or non-medical expenses. It is best for those expenses which are accidental such as for child care, for transportation.

· The terms and conditions of personal loan can be a little stricter than medical loan, along with this the interest rates can also be higher in it.

· Which type of loan to take out of the two now depends on your financial needs.

· If you want to take a loan only for medical treatment and all the expenses are related to medical treatment, then it would be better to take a medical loan for this. But if you want to take a loan to meet medical expenses as well as other types of financial obligations, then you should take a personal loan for this.

· Before taking any type of loan, you should have good information about the interest rates, terms and conditions. For this, you can get information by contacting the bank, financial institution or customer service center.