5 Advantages of taking a Medical Loan over Health Insurance


Health insurance is considered to be a full proof plan to meet the financial liabilities arising from a health emergency in the family. However, many people are required to go for personal loans for a medical procedure or emergency. The reasons for opting for medical loans, as they are commonly known, could be many. In some cases, taking a loan would be a better option than insurance.

Let’s look at some of the reasons why taking a medical loan makes more sense, compared to a health cover.

  1. Easy to avail – Getting medical loans is quite easy, particularly now in the digital age. One can visit the online platform of their preferred lender and quickly apply for a medical loan based on their eligibility. Health insurance, on the other hand, often involves documentation and restrictions. It includes getting pre-authorization, selecting only impaneled hospitals, waiting periods, pre-existing diseases, etc.
  2. Freedom of meeting varied expenses – Medical loans can be used for any and every medical expenditure that you incur. Unlike a health cover, it doesn’t restrict your choice of hospitals, rejects excluded medical expenses or lines of treatment, or require paperwork in the hospital. You can use it for Outpatient Department Expenses, alternative treatments, or any incidental expenses incurred in the course of treatment.
  3. Necessity based – Medical loans can be availed as and when required. The only expense in a medical loan is the interest portion charged on repayment. On the other hand, in case of health insurance, you have to pay a fixed premium irrespective of the fact whether you claim it or not. A competitively priced personal loan taken for medical purposes can be cost-efficient, more so if the loan period can be kept shorter. This is particularly true for a healthy person who has no history of medical complications and an ideal lifestyle.
  4. Eligibility and health records – For a health insurer, the health history and age of the applicant are important factors. Premium increases with age and a person with serious health problems can be considered high-risk. In such cases, health insurance may even be denied. Personal loans are provided irrespective of the applicant’s medical condition or history.
  5. No limit on Expense – In case of a health cover, the insurance is available only up to the sum assured. If the medical expenses exceed the sum assured, the surplus expense is not paid by the insurer. A high sum assured may be selected, but the premium would rise accordingly. Personal loans, on the other hand, can be availed as per your need. Therefore, a personal loan is better equipped to meet higher costs of treatment compared to a health cover.  

Personal loan documents are simple and easy to furnish. With a trusted lender in place, the borrower can rest assured that an affordable medical loan, if required, can be easily obtained. The loan approval process involves one-time, and often limited, documentation. Medical loans can be easily availed from any financial institution. Most leading financial institutions have a strong presence in cities and towns across India. Besides instant online personal loan approval, the processing is ensured by these institutions through digital processing.

The loans are unsecured personal loans, taken particularly to meet hospital bills and medical treatment expenses. These are approved on the basis of the credit profile and the personal loan documents.


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