What Are the Eligibility Requirements for Medical Loans?
An individual may need medical aid anytime in their lifetime. Sometimes, these medical costs can be expensive, and they might need financial assistance to get the best treatment they need. That is when they can get medical loans to support their medical requirements ranging from surgeries, IVF and transplants to cosmetic or dental procedures. Personal Loans for medical emergencies are hassle-free and quick, making them the best funding options for urgent medical expenses during an accident or another exigency.
Online applications that the most advanced NBFCs support make the loan process very easy and fast to benefit most people. However, they must fulfil the lender’s eligibility criteria to get the required funding in time. Below are the eligibility requirements for medical emergency loans to plan the loan application better.
- Age
The applicant must come under the lender’s minimum and maximum age requirements to qualify for a medical loan. It tells the lender about the borrower’s financial stability and ability to repay the borrowed amount.
If an individual is just out of college, they may be financially stable to repay the loan. Likewise, if they are approaching retirement, their earning potential reduces significantly during the period. Financial institutions generally prefer applicants with ages ranging from 21 to 58. However, different lenders have unique age requirements one must check and fulfil before applying.
- Monthly Income
Loan repayment highly depends on an individual’s monthly earnings. Therefore, loan seekers must pay attention to their income when applying for a Personal Loan for a medical emergency. Different lenders have unique minimum income requirements. Moreover, lending institutions consider the applicant’s city, occupation, and work experience when assessing their income.
Although finance companies consider the applicant’s primary income source, mentioning passive income sources like incomes from rent, investments, and dividends also count. A decent monthly income of at least Rs 15,000 reassures lenders that the borrowers can pay their EMIs on time.
- Credit History
Medical loans are unsecured forms of credit that do not require any kind of security or property backing them. Therefore, loan providers determine an applicant’s creditworthiness by assessing their credit metrics. An individual’s credit history reflects their EMI repayment patterns, which credit bureaus rate through a 3-digit number called a credit score. Most lending institutions have a minimum credit score requirement in order to avoid loan defaults and receive timely EMI repayments. Maintaining a consistent repayment history positively impacts the factors affecting loan approval.
- Debt-to-Income Ratio
Suppose an individual works for a prestigious organisation with a handsome salary package but spends most of their income on other financial obligations. Such a situation can significantly affect their Personal Loan eligibility. The lending institutions calculate their debt-to-income ratio by dividing their existing financial commitments by their total monthly income to avoid this situation. A higher DTI ratio results in loan rejection or a higher interest rate. Maintaining a lower DTI, typically not more than 40%, is important.
- Job Stability
When evaluating their loan application, lenders consider the applicant’s work experience and current employment. Those with stable jobs and regular salaries have better chances of obtaining Personal Loan approval. Self-employed professionals with established financial situations are also eligible. On the other hand, lenders may reject loan applications if the applicant’s employer is a start-up or has a history of poor financial health or late salary payments. These factors significantly impact an individual’s ability to repay the borrowed loan.
How to Check Eligibility for a Personal Loan
Going through the lender’s eligibility criteria is the best way to check eligibility for a Personal Loan. Those looking for the same must review the lender’s age, income, employment, credit score, and other requirements and ensure fulfilling them before applying. The Personal Loan eligibility calculator is an efficient online tool that helps calculate Personal Loan eligibility based on the applicant’s loan requirement, net monthly income, and current financial obligations.
Check the above pointers to get guaranteed approval while looking for a Personal Loan for a medical emergency. When someone needs immediate funds during a medical emergency, they don’t have time to waste on loan rejections and additional formalities. Apply for collateral-free medical loans with reputable lending institutions and get the required funding within minutes.
