… and how Medical Loans help fill the void.
Health Insurance.
Health insurance in India is a growing sector of the Indian economy. The Indian healthcare system is one of the largest in the world, with nearly 1.3 billion potential beneficiaries. In terms of income and job creation, India’s healthcare industry has quickly become one of the country’s most important sectors. In 2018, one hundred million Indian households (500 million people) lacked access to health care. In 2011, the health sector accounted for 3.9 percent of India’s GDP. According to the World Health Organization (WHO), this is among the lowest of the BRICS (Brazil, Russia, India, China, and South Africa) economies. Individual and family policies are available. Health insurance accounts for 5-10% of this 3.9 percent, employers account for around 9%, and personal expenditure accounts for an incredible 82 percent. Based on the results of its 71st round of surveys, the NSSO published the report “Key Indicators of Social Consumption in India: Health” in 2016. According to a 2014 survey, more than 80% of Indians are uninsured, with only 18% (government funded 12%) of the urban population and 14 percent (government funded 13%) of the rural population covered.
Health Insurance Policy Drawbacks
One of the most significant drawbacks of having health insurance is the cost. Even for those who have a health insurance plan through their employer, health insurance can be very expensive. Costs may be so high that many people are unable to make payments. This can be particularly difficult for those with low incomes or who work for themselves. Health-care coverage for families may result in an additional financial burden.
Pre-Existing Disease Exclusion: Another disadvantage would be the exclusion of people who have pre-existing diseases. They must go through a four-year waiting period. Insurers typically require a four-year waiting period for any pre-existing illness to be covered. This presents a significant challenge for older people who have pre-existing medical conditions. This is especially true because pre-existing illnesses do not only include illnesses for which you have recently received treatment. It includes illnesses for which there were signs or symptoms in the 48 months preceding the first premium payment.
Waiting Period: During the Waiting Period, you must wait a certain amount of time before filing a claim. However, you are not permitted to claim any or all of your company’s health insurance benefits. The initial waiting period, also known as the 30-day waiting period, is the amount of time the customer must wait before filing a claim under the health insurance policy. This waiting period rule does not apply to any accident-related claims. This is also included to discourage people from taking health risks. The higher the co-pay amount selected by the customer, the lower the health insurance premium.
Co-Payment: A co-pay is a method of holding customers accountable and requiring them to participate in the claim settlement process. The amount of claim that the insured customer must bear at the time of claim settlement is referred to as the co-pay. If a person is over the age of 65, most health insurance policies require a co-pay.
Increase in Premiums: Your health insurance policy’s premiums are largely determined by your age. When you buy a health insurance policy when you are 30 years old, the premium amount can be significantly different than when you buy one after you reach the age of 50. By charging a higher premium, the insurers take on more risk. This is why it is recommended that you obtain health insurance while you are still young.
Medical Loan
A medical loan is a type of personal loan that provides financial protection against expenses incurred in the event of a medical emergency. Medical loans can be used to pay for hospital bills, medical prescription bills, surgeries, bypass surgery, chemotherapy, and other similar treatments. They can be used to finance medical procedures, medical debt consolidation, optional surgical procedures, out-of-network charges, or other medically related costs not covered by your health insurance.
What is the process of getting a medical loan?
Medical loans are provided by a variety of lenders, and the application process is similar to that of any other type of loan, with the exception that some lenders may be more flexible in terms of credit score requirements or previous credit history than others.
The following are some of the benefits of medical loans:
- Loans are granted quickly.
- There is no need for security or collateral.
- The loan is repayable in instalments.
- Medical loans are available to both salaried and self-employed individuals, subject to the terms and conditions of the lender.
- To apply for a medical loan, simple and minimal documentation is required.
- The loan funds can be used for any medical expense.
- Loan repayment terms are flexible.
- Many lenders allow applicants to apply for medical loans online.
- In the event of a medical emergency, you will most likely want the funds as soon as possible. As a result, it is critical that you check the loan’s disbursal time. It is helpful during medical emergencies.
Considerations When Applying for a Medical Loan
Here are a few things you should think about before applying for a medical loan:
Interest Rate: A variety of lenders offer medical loans at varying interest rates, which are determined by the lender’s terms and conditions. Given this, it is in your best interest to investigate and contrast the interest rates charged by various lenders. Although the interest rate should not be the only factor you consider when applying for a medical loan, it is best to choose a medical loan with a low interest rate to keep the overall cost of your loan low.
Payable EMIs: Use the EMI calculator, which you can find on the lender’s official website or on a third-party financial services website, to check and compare the payable EMI for different lenders. The EMI payable will differ depending on the loan amount selected, the interest rate charged on the loan amount, and the loan tenure. It is advised that you obtain a loan with low EMIs.
Credit Score: Your credit score will affect the interest rate that you are charged for a medical loan. If you have a good credit score, you will be charged a lower interest rate. Further, you may also be able to negotiate with the lender for a better interest rate. Thus, before applying for the loan, it is in your best interest to check your credit score.
Other Fees: Lenders typically levy fees such as the processing fee, pre-payment charge, pre-closure charge, dishonour charges, penalty charges, and so on. Before applying for a medical loan with a specific bank or financial institution, make sure to compare the various fees charged by different lenders.
How to apply for a Medical Loan from Arogya Finance?
Visit the website arogyafinance.com and click on the Apply Now button; or just follow this link – Apply For Medical Loan and fill out the details as per the given instructions.
Documents required for Arogya Finance Medical Loan
Please keep the following information on hand before completing the application:
- Identity proof: PAN Card image
- Address proof (Aadhaar card both sides images)
- If the applicant is not the patient, the patient’s Aadhaar card both sides images will be required
- As part of the application flow, the system will request a selfie (uploading a photograph will not serve the purpose). The computer’s or mobile’s front camera should be activated when prompted.
- If you are salaried, providing an official email address will speed up loan approval.
As per credit requirement following additional documents may be required:
- Self-employed: ITR for latest year
- Bank statement for the last three months
- If the address proof is not the current address, then current address proof (utility bill / rent agreement) is required.
Why Arogya Finance Medical Loan?
We believe that access to health care is a fundamental human right that all people should have. Arogya Finance with its dedicated team of professionals work tirelessly with the aim of providing that basic right. Arogya Finance has formed alliances with hospitals and other health-care providers to ensure that people can obtain medical loans for themselves and their families. Patients borrow from and repay Arogya Finance directly, freeing them to seek treatment wherever they choose. Coupled with our easy online application and flexible interest rates than most lenders and lesser disbursal time, we aim to provide the best services in this competitive market.
