Factors to note when applying for a medical loan – Kotak Bank

11 MARCH, 2020

The cost of medical care and services is always expensive, especially when one requires urgent and long term hospitalization. During such testing moments, health insurance taken by you for yourself and your family members can be the ultimate savior. However, there are times when medical expenses run too high. In such cases, the exorbitant bills may not be completely covered by the insurance provider. This is when you can opt for a medical loan.

A medical loan is a type of personal loan that covers your medical expenses, especially during an emergency. Many banks and financial companies provide medical loans to individuals in need. Fortunately, most banks today have also streamlined their procedures so that the loan is disbursed at a much faster pace.

Here are some things to know when applying for a medical loan:

Make a rate comparison

Many banks charge different interest rates for a medical loan. The interest rate gaps can be huge and could majorly impact your savings. Hence, it is important to make a rate comparison of different banks and financial institutions that provide medical loans. Post analysis, pick the one which brings you the best value.

Documentation

Make sure to know what documentation is required by the bank or the financial institution in order to get the loan approved. The most common documents needed will be proof of address such as Aadhaar card, driver’s license, passport or PAN card. Bank statements, salary slips or income tax returns will be required to access proof of income.

Affordable EMIs

It is wise to use an EMI calculator to check and compare the EMIs of different banks and financial institutions before availing a medical loan. The payable EMI will vary depending upon the loan amount, interest rate and loan tenure.

Other charges

Banks and financial institutions usually charge certain fees like processing fees, re-payment charges, pre-closure charges, dishonor charges and penalty charges to name a few. So before applying, research and compare the various fees levied by different financial institutions.

Credit score

Your credit score could impact the interest rate that is charged on your medical loan. A good credit score will let you negotiate with your lender for a better rate of interest. So before applying for a loan, it is important to check your credit score.

Avoiding delays in getting medical loans

Provide valid documents


One important reason for the delay in the approval of medical loans is the lack of proper documentation on the part of loan applicants. As a loan applicant, it is essential to provide authentic address and income proofs as demanded by the bank.

Choose banks known for quick loan disbursal and smooth procedures

Make sure that the bank you choose to apply for a personal loan for a medical emergency has a reputation of disbursing loan amounts without any delays. After all, you do not want to face delays when stressed by a medical emergency.

Also, some banks still follow cumbersome procedures of approval of medical loans which leads to delays. It is advisable to first research about the bank and the loan approval procedures before deciding on the right pick. It also serves well to check customer feedback and reviews with regard to the bank, to be sure about the same.

Read more to know about how to manage your medical emergencies with personal loans here.

 

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

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Frequently Asked Questions

What can a personal loan be used for?

Personal Loan can help you meet unexpected expenses such as wedding expenditure, school or college fees, dream vacations, home renovation projects or even for the purchase of consumer durables. 

 

Applying for a personal loan is a lot easier, quick, and convenient with Kotak Mahindra Bank.Click https://www.kotak.com/en/personal-banking/loans/personal-loan.html to apply for the same. 

 

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Do I need to provide any security or collateral to obtain a personal loan?

No, you do not have to provide any security or collateral to obtain a personal loan. Personal loan is a type of unsecured loan. This essentially means that it is not backed by the guarantee of collateral. You are not burdened by the need to generate collateral like gold, property or shares, as with other types of loans. As there is no security to assure loan repayment, the bank will focus on the income and financial stability of the applicant. 

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What are the benefits of taking a personal loan with Kotak?

There are several benefits of availing a personal loan from Kotak bank. Some of the most notable benefits include:

  • prepaymentInstant approval – The bank approves the loan at a quick rate and this makes the process much easier to serve different financial purposes.
  • Easy Documentation – It comes with minimal documentation requirements to help you save time and cater to your emergency financial needs without any hassle.
  • Versatile usage – The personal loan can be used to fulfil many purposes. From funding a dream wedding to serving a medical emergency, it can be used to serve different planned and unplanned financial needs.
  • Attractive interest rate – The personal loan is made more convenient with an attractive rate of interest starting at 10.75 p.a.
  • Part Prepayment facility – In case of excess funds/financial liquidity , you can reduce your loan burden with part prepayment

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What is the eligibility criteria to apply for a personal loan?

The eligibility to avail Personal loan is as follows :

  • All Indian residents who are employees of either MNCs, Public and Private limited companies with a minimum age of 21 years and maximum age of 58 years are eligible for a personal loan.
  • Other Personal loan eligibility criteria :
    • Income Net monthly salary of Rs. 20,000/-
    • Minimum educational qualification - Graduate
    • Years in city - Minimum 1 year
    • Total work experience - Minimum 1 years

You can apply for a personal loan by following the below steps:

On Mobile banking

  • Go to Apply Now
  • Personal Loan ( If eligible)

On Net Banking

  • Go to Banking
  • Apply for Preapproved Personal Loan (If eligible)

Or

By simply clicking https://rcasprod.kotak.com/personal-loan?source=website&banner=ProductPageApplyonlineTab

Please Note: The same would be subject to approval. The time frame for the personal loan is 10 working days if approved.

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What is the best way to apply for a personal loan?

You can apply for a personal loan by following the below steps:

 

On Mobile banking

  • Go to Apply Now
  • Personal Loan ( If eligible)

On Net Banking

  • Go to Banking
  • Apply for Preapproved Personal Loan (If eligible)

Or

By simply clicking https://rcasprod.kotak.com/personal-loan?source=website&banner=ProductPageApplyonlineTab.

Please Note: The same would be subject to approval. The time frame for the personal loan is 10 working days if approved.

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