In 2020, the transaction value in the personal finance sector totals $1.5 billion as per reports. The significant size of this market is owing to the reasons that personal loans can be used for many purposes.
For instance, a personal loan comes forward as a formidable measure to attend to unprecedented health emergencies. It not only provides individuals with the financial capacity to tackle unplanned medical expenses effectively by availing quality and timely treatment without putting a strain on their savings.
Moreover, with the evolution of technology, demand for a personal loan for medical emergency has trended upwards due to ease and pace of availability. It has encouraged multitudes of consumers to depend on this line of credit to address medical emergencies and other unprecedented and perhaps substantial expenses.
An overview of the personal-finance market in India –
- Transaction value in this sector is forecasted to grow at a CAGR of 19.3%.
- Online or digital remittances of personal loans amount to 95% of total transactions in this sector.
- According to a recent RBI survey, consumer spending on essential items like medical costs has grown by 83%.
The above data substantiate the growing popularity of the personal finance industry, which is suggestive of its capability to meet and increasingly satisfy consumer demand.
How to get a personal loan online for a medical emergency?
The application procedure for most financial institutions, in a strict sense, differs when it comes to the online procedure.
Nonetheless, here’s all you need to know about a personal loan for a medical emergency and the process to avail it –
- Check the eligibility criteria
Before you apply for a personal loan online, check if you meet the personal loan eligibility criteria of your preferred financial institution. It might or might not vary among lenders.
The standard criteria that most financial institutions go by in the Indian financial market for a personal loan are –
- You must be an Indian citizen residing within the country.
- You should possess a credit score of 750 or above.
- You must have a steady source of income – employment or self-employed.
- You should be within the age of 23 years to 65 years of age.
Alongside this set of criteria, financial institutions might have their own defined criteria that you would need to satisfy to qualify for a personal loan.
- Learn about the features of personal loans offered by different lenders
This step is quintessential to securing a personal loan that adequately meets your financial requirements. You should check the features and benefits of personal loans offered by different financial institutions to base your application decision.
The features you should look for are –
- Loan quantum
A high loan amount is paramount to attend to a medical emergency appropriately. Therefore, before you apply, check the maximum loan amount offered by a specific lender and also the amount you qualify for according to its eligibility criteria.
For instance, NBFCs provide a personal loan up to Rs.25 lakh. Such a high amount ensures that all aspects of treatment are sufficiently covered without straining your savings.
- Repayment terms
You should also consider the terms of repayment of your personal loan for a medical emergency before application.
First and foremost, check the repayment tenor. EMIs of your personal loan directly depend on this factor. A longer tenor would mean smaller monthly instalments but increased interest accrual. On the other hand, a shorter tenor would indicate steep EMIs but lower interest on a loan. You can use a personal loan calculator to determine the correct tenor.
Secondly, see the charges associated with the repayment of loans from different lenders to make an informed decision.
- Approval and disbursal process
Lastly, check the approval and disbursal process and shortlist the lenders that provide faster disbursal as time is of the essence when availing a personal loan for medical emergency. You might also check for pre-approved offers provided by leading lenders like Bajaj Finserv.
These offers accelerate the application, approval, and disbursal and are ideal instruments to address a medical exigency promptly. These offers apply to a broad array of credit facilities like personal loans, business loans, etc. You can check your pre-approved offer by providing your name and phone number.
The convenience of digital loans bolstered by quick approval and disbursal has significantly contributed to its popularity and robustness in recent times.
- Retail lending has witnessed a CAGR of 16% over the past 5 years as per the Boston Consulting Group.
- Check the documents required
Once you have checked the personal loan eligibility criteria for personal loans and its features, the subsequent step is to check the documents you need to apply for a personal loan.
The following documents are most commonly required for personal finance in India –
- KYC documents.
- Income proof like latest salary slips, savings account statements, or Income tax returns.
Arrange all the necessary documents beforehand to ensure a speedy personal loan application process.
- Apply for the loan
Once you have conducted adequate research and zeroed in on a lender to avail a personal loan for a medical emergency, all that is left is for you to apply. You can either apply offline or online.
Applying offline might be tedious and lengthy, considering the manual work behind it. Hence, it is one of the reasons why you should avail of a personal loan online.
The process is discussed below –
- Visit your preferred lender’s official website and fill out the application form for a personal loan from the dedicated webpage.
- Choose the loan amount and tenor.
- Submit the necessary documents.
After successful completion of an application, you will receive an approval from the lender and subsequently disbursal in your account. And that concludes the process of how to get a personal loan. With this immediate injection of funds, you can address any unprecedented medical expenses promptly and effectively.