Interest Rates on Medical Loans: Here is everything you need to know

Since medical expenses often catch you off guard in today’s complex healthcare landscape, medical loans come to your rescue. These have emerged as a viable option for those seeking to deal with hefty medical bills. But before diving in, understand the medical loan interest rates, as they significantly impact your overall repayment amount.

To know more about interest rates on medical loans, read on.  

What are Medical Loans?

These are a type of personal loan that you can avail yourself of to cover costs arising due to medical emergencies. You can access these funds to pay for hospitalisation bills, surgery costs, prescription bills and chemotherapy costs. Here’s a brief overview of this financial product:

• Most lenders usually offer an online application process and ensure quick approval, which comes in handy during emergencies.
• You can use these funds for all types of ailments, ranging from minor dental surgery to chemotherapy sessions.
• These loans allow you to choose a repayment tenure best suited to your financial capabilities.
• Unlike some other types of loans, these don’t require you to pledge collateral, saving you from the stress of managing it in trying times.

Understanding Interest Rates on Medical Loans

Financial institutions generally charge between 11% and 24% p.a. on healthcare loans. However, medical loan interest rates can also vary depending on the following factors:

• Lender’s Preferred Policy: Every financial institution has its risk-assessment criteria, based on which they decide the interest rates to be offered.
• Credit Score: Credit score is a major factor that influences medical loan interest rates, as you can get funds at lower rates with a higher score.
• Monthly Income: Lenders also decide the interest rate based on your income because it directly impacts your repayment capacity.
• Work Experience: A stable employment history also strengthens your loan application and ensures that you can get lower rates.

How to Get Low Interest Rates on Medical Loans

During medical emergencies, healthcare loans can be a lifesaver. However, their interest rates can significantly impact your overall cost of borrowing. Here are a couple of strategies to get medical loans at low interest rates:

Fulfil the Eligibility Criteria

Before applying for a healthcare finance facility, check the eligibility requirements set by the lender. Consider the following before filling in the application form:

• Ensure that you meet the specific requirements of the lender by checking on the financial institution’s website.
• Having a higher income and stable employment improves your chances of securing more competitive rates.
• Lenders provide lower rates to borrowers with higher incomes because they generally have lesser chances of defaulting on monthly payments.

Also Read: Personal Loan for Medical Emergencies

Maintain a Good Credit Score

As mentioned earlier, this three-digit score indicates your credit repayment behaviour. Generally, financial institutions provide lower interest rates if you have a credit score over 750. With a high credit score, you can also negotiate better terms with the lender.

As you navigate through various medical loans when choosing one, you can opt for a product with the lowest rates armed with this knowledge. By staying informed and proactive, you can make empowered decisions that prioritise both your health and financial well-being.

With Fibe, you can get a Healthcare Financing of up to ₹10 lakhs for all your healthcare needs. You can repay it with no-cost and low-cost EMIs over the period that you desire. Download our Personal Loan App or log in to our website to get a medical loan at low interest rates with minimal paperwork. 

FAQs on Medical Loan Interest Rate

What is the interest rate for a medical loan?

The average interest rate for healthcare loans ranges between 11% and 24% p.a. Note that medical loan rates depend on several factors, such as the lender’s policies, your creditworthiness, income and more.   

What is the medical loan policy?

A medical loan is a financial product that you can get to fund your medical expenses. Among other things, you can use the available funds to cover the following bills:

• Hospital bills
• Surgery costs
• Prescription bills
• Chemotherapy costs

Who is eligible for a medical loan?

While the eligibility requirements may vary depending on the lender you choose, here are the criteria you need to fulfil to get a Healthcare Finance facility from Fibe:

• You need to be between 21 and 60 years.
• You must be a self-employed or salaried individual with a steady source of income.
• Your minimum monthly income needs to be ₹15,000 and ₹20,000 if you are a salaried or a self-employed individual, respectively.
• You must reside in a city where Fibe’s services are available.

Can I take a loan for medical treatment?

Yes, many banks and financial institutions offer personal financing facilities to help you cover the bills for medical treatment.