How to get personal loans for medical emergencies?

A personal loan can be obtained for a variety of reasons. One of the most common reasons why people opt for personal loans is to fund medical emergencies. Withdrawing on credit cards or opting for other sources can work out to be more expensive than personal loans. It is for this reason that when one is short of funds for medical emergencies, he/she opts for a personal loan. Here is how one can get a personal loan for medical emergencies:

Evaluation of options: An important step while taking a personal loan is to research personal loans from different banks. Since time is of the essence while funding a medical emergency, the most important factor to be checked is how quickly the loan can be sanctioned and disbursed. Ask your existing bank, as the documentation is usually much simpler if you are already the bank’s customer. Also remember to check the interest rate and mode of computation of the interest (on fixed or reducing balance basis). Although EMI outflow is a crucial factor, quickness is getting the loan is more critical in this case.


A personal loan is much simpler than other loans. Nevertheless, in times of emergencies, it may look like it is very difficult to arrange even the simple documents. It is therefore always better to approach your existing banker, as the documentation requirements will be simpler. Even if this is not looking attractive, it is advisable to keep your basic documents like address proof and identity proof handy to meet such emergencies.


For any loan, you need to be transparent and disclose your details upfront. This is always important, as disclosing fraudulent details or hiding material information can lead to an adverse effect in your credit rating.

Read all terms and conditions carefully:

Reading the fine print before signing the dotted line is vital in any agreement. When you take a personal loan, there are chances that there may be hidden charges or some terms which are not very apparent on paper. This may work to your disadvantage. Although taking a personal loan in medical emergencies means you will not have much time, it pays to check out the minute details before signing the agreement.

Check prepayment terms:

When you prepay a personal loan, many banks impose a prepayment penalty. Some banks do not allow prepayment for a period of 6 to 9 months. Generally, a loan taken for medical emergencies is like a stop gap arrangement, and you may want to pay off the loan before the completion of the tenure. Therefore, it pays to check this factor before taking the loan. A bank which imposes a higher prepayment penalty or which is more stringent in its prepayment terms should ideally be avoided.

Maintain good credit rating:

A personal loan is riskier than other loans, since it is unsecured in nature. Lenders insist for a good credit rating, and always check your credit score before granting the loan. It is therefore always important that you maintain a good credit rating. Although this cannot be set right at the last minute, you must always keep in mind that maintaining a good credit rating means you can get the loan easily and also at better rates.

Check for flexibility in cost:

Personal loan interest rates are generally high, since there is no security required. However, you can ask the bank if they can reduce the rates if you offer a security or a guarantor for the loan. Check your financial situation and ask for flexibility in terms accordingly.


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