Manage Your Medical Expenses with a Quick Medical Loan

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India has one of the highest medical inflation rates among Asian countries, which increases the cost of medical treatment and health insurance. This makes healthcare less accessible and puts a greater financial strain. In 2021, the inflation rate in the country was 14%. And according to an industry report, the global medical inflation rate is estimated to be 10% in 2023.

Despite the cost of healthcare, medical treatments and emergencies are unavoidable. Whether it is due to chronic conditions, genetics, global pandemics, epidemics, increasing pollution and consumption of carcinogens, or lifestyle habits, health conditions and ailments are on a rise in people of all ages and demographics. Tests and scans themselves cost thousands of rupees while standard treatments can run into lakhs.

So, if a medical treatment or emergency were to come up, it could force you to use the funds you were saving for certain financial goals in your life. To avoid this, it’s important to know well in advance the financing options you have so that in case you need access to funds for medical purposes, you can do so without delay or stress.

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Financing options for medical treatments and emergencies

There are two popular financing options for medical purposes. They are:

Health Insurance

General insurance companies provide a variety of health insurance policies to safeguard you financially against medical contingencies. You can choose the amount of health insurance cover you want to opt for and for that you have to pay a premium to the insurance company, which is essentially the cost of the policy. The insurance premium depends on a variety of factors such as the sum assured, your age, your current health, etc.

Most health insurance policies now come with cashless claims which means that in case of hospitalisation, you do not need to pay out of pocket and then later file a claim with your insurer. Instead, the medical bills and expenses are directly settled between the hospital and your insurer. This is an important benefit of health insurance policies.

Medical Loans

A medical loan or a medical emergency loan is a personal loan offered by banks and other financial institutions to help cover the costs of hospitalisation, medicines, scans, etc. A medical loan for emergencies is a saviour as it allows you to access funds immediately to meet urgent medical needs. You can apply for a medical emergency loan online and avail funds up to Rs 40 lakh instantly. The application process is simple, and the documentation required is minimal.

Medical loans are the go-to option for people who do not have a health insurance cover or need a treatment that is not covered by their health insurance. The funds from a medical loan can be used for any treatment or post-treatment care. It can be used for self or for a family member. Hence, medical loans are more convenient as you get the money you need with the flexibility of using it in a way you seem necessary during a medical emergency.

Reasons why a medical loan can be more helpful than health insurance

Every individual should have a health insurance policy in place that offers a comprehensive coverage. However, despite that, there are several situations in which a health insurance plan can fail to provide financial assistance when needed the most. And in those situations, a medical loan can come in handy. Some of these situations include:

• Pre-existing conditions: Every health insurance plan comes with a waiting period for pre-existing conditions. Most plans come with a waiting period of two to four years for all pre-existing diseases or health issues that the policyholder may have. In such a case, if you need medical treatment for a pre-existing condition before the waiting period is over, a medical loan can come to your rescue.

• Critical illnesses: Most insurance plans exclude critical illnesses like cancer, kidney disease, heart disease, etc. Or you have to opt for an add-on policy to cover such critical illnesses and pay an additional premium. In case you do not have such an add-on, a medical loan can be helpful to pay for critical illness treatments and care.

• Mental health: Most insurance policies in the country only cover physical health and not mental health. This means that treatment for mental health issues such as depression, anxiety, chronic stress, etc., are not covered by insurance. So, in case you need to see a psychologist or psychiatrist, you can apply for a medical loan. Since a medical loan does not have any restrictions on the end usage of funds, you can use that money to fund your therapy sessions and get the care you need.

• Other exclusions: Standard health insurance policies tend to have several other exclusions such as dental treatment, maternity-related expenses, sexually transmitted diseases, cosmetic treatments, injuries from adventure sports, etc. Again, a medical loan is a great financing option for all these situations as it helps you get the medical care you need without any delay.

How to apply for a medical loan?

When applying for a medical loan, one of the most crucial things is a quick application process that allows you to get the funds in your bank instantly so that there is no delay in receiving the right treatment and medical care. And applying for a medical loan with Kotak is an easy and simple four-step process. You can do this by yourself from the comfort of your home, the waiting room of a hospital, or the parking lot of your office – anywhere, anytime.

First, fill in the loan application form that requires your details such as name, date of birth, mobile number, email ID, city of residence, employment type, and net monthly salary. Second, upload documents including PAN, Aadhaar, and last three months’ bank statements to verify identity, address, and income.

Third, enter the loan amount you need and the bank details for the account from which the loan’s Equated Monthly Instalments (EMIs) will be auto-debited each month. Review and confirm the loan repayment details and then sign the e-agreement. Lastly, complete the video KYC, post which your application will be processed, and the funds will be disbursed into your bank account.

Hence, from the moment you click on the personal loan apply button, the whole process is streamlined, and you can access the funds within a few hours if there are no issues with your application. You can also take a minute and use the personal loan EMI calculator to determine what your EMIs will look like over your loan’s repayment tenure as well as what the total interest outgo will be to get clarity on how you will repay the loan and if you want to opt for a longer or shorter repayment tenure. This tool is available for free on Kotak’s website and you can use it as many times as you need to determine loan repayment terms that align with your needs.