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What You Need To Know Before Taking A Medical Loan

A woman in a wheelchair with her therapist to illustrate the concept of taking a medical loan for medical emergencies

Life can be unpredictable at times and we may find ourselves or our loved ones in an emergency medical situation. It is no secret that medical bills in Singapore can burn a hole in your pocket.

Because of that, insurance schemes like MediSave and hospitalisation insurance plans are very important to have. However, for hefty bills, your MediSave balance may not be enough to sustain you.

If you find yourself needing treatment or surgery that your insurance plans do not cover, searching for a large sum of cash can be daunting. In such cases, medical loans from licensed money lenders in Singapore can be an option for those who need urgent funds.

These medical loans come in the form of personal loans and can be borrowed from some of the best licensed money lenders in Singapore in less than 30 minutes. However, before diving into this option, it is important to know the ins and outs of a medical loan.

What is a medical loan?

Medical loans are specifically meant to fund any medical cost that your insurance plans cannot cover. A lot of the time, they are used for emergencies where you do not have the required insurance plans for coverage.

A medical loan can be used to pay off a variety of treatments such as surgical and non-surgical procedures, consultations, hospitalisation costs, medication, and medical tests. In some cases, these loans are needed to help pay off the medical bills for insurance plans that only pay out after your medical treatment is complete.

However, individuals who already accumulated a chunk of medical debts should consider opting for a debt consolidation loan instead. Using this option would consolidate all the debt into one. Apart from being easier to manage and track payments, a debt consolidation loan can decrease your interest rate charges and help to pay off the debts faster.

Read this to learn more about debt consolidation loans.

Where to get a medical loan in Singapore? Can you get a medical loan from a bank?

You can get a medical loan from a licensed money lender in Singapore.

Banks do not usually offer medical loans, however, you can apply for personal loans and use them for your medical needs.

As a rule of thumb, you can normally loan up to 4 to 10 times your monthly income. They may also impose a minimum loan amount of up to 5 figures. However, to get a loan from the bank, you need to meet their salary requirements of at least $20,000 and have a good credit score, which makes them inaccessible for some people.

A good alternative to banks would be licensed money lenders. Unlike banks, licensed money lenders do not discriminate based on credit score. They also do not have a minimum salary requirement. Instead, licensed money lenders look at your current income and existing loans to decide on your eligibility.

Depending on your creditworthiness, the best licensed money lenders can offer loans up to 6 times your monthly salary. As they do not have a minimum loan amount, you don’t need to borrow more than you need.

What about the interest rate?

It is important to shop around for affordable interest rates before you settle on a loan. Generally, bank loans have a lower interest rate than licensed money lenders, whose rates are capped at 4% per month by the Ministry of Law.

One of the reasons licensed money lenders have a higher fee is because you can get quick and seamless transactions. As long as you get all your documents in order, you can receive your loan in less than 30 minutes.

Your credit score is not scrutinised unlike if you were to apply for a loan from a bank, hence the process is a lot faster. In emergency medical situations, this can be a crucial factor in your decision-making.

On top of interest rates, do not forget to factor in extra costs, such as origination or service fees. Lastly, you should match your loan tenure to your financial situation for a comfortable repayment plan. Being a responsible borrower would go a long way to ensure a healthy financial life.

Are you eligible for a medical loan from a licensed money lender?

To apply for a medical loan from a licensed moneylender in Singapore, you need to:

  • Be a Singaporean, Permanent Resident, or Foreigner with Work Permit
  • Be at least 18 years old
  • Have a consistent source of income (full-time, part-time, self-employed, or freelance)

Need a medical loan from a licensed money lender in Singapore?

At Soon Seng Credit, we offer medical loans with competitive interest rates, flexible repayment periods, and fast processing. Soon Seng Credit is one of the top licensed money lenders in Chinatown, Singapore. Contact us today to discuss your requirements.

We assume no responsibility or liability for any errors or omissions in the content on this website. The information contained on this website is provided with no guarantees of completeness, accuracy, usefulness, timeliness, or any warranties of any kind whatsoever. The content on this website is for informational purposes only and should not be construed as professional advice.

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