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 and because of that, insurance schemes like MediSave and personal 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 can be an option for those who are in need of urgent funds. These medical loans come in the form of personal loans and can be borrowed from some of the best licensed money lenders at affordable interest rates in just an hour. Soonseng is one of the top money lenders in Chinatown that can provide urgent loans to clients who are in any medical emergencies. 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 personal insurance plans cannot cover. A lot of the time, they are used for unexpected emergency situations where you do not have the required insurance plans for coverage, or in some cases, these loans are needed to help pay off your medical bills for insurance plans that only payout after your medical treatment is complete. In more complex cases, you may have to be in charge of paying off a loved one’s bills if they are in a critical condition.
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. However, it is recommended for individuals who have a chunk of medical debts already accumulated, to opt for a debt consolidation option to combine all their bills into one. This service can decrease your interest rate charges and help to pay off your debts faster.
What do you need to consider before getting a medical loan?
There are two main options where you can apply for a loan and there are banks and licensed money lenders. Usually, both options offer unsecured loans, which means no collateral is needed for you to apply for the loan. However, you will have to manage your finances and decide how much of a loan amount is needed for your medical expenses. Banks offer bigger loans of up to 8 to 10 times your monthly income but may also require a minimum loan amount of up to 5 figures. On the other hand, some of the best licensed money lenders will offer loans up to 6 times your monthly salary and will not have a minimum loan amount to refrain you from paying more than you need.
Of course, it is always important to shop around for affordable interest rates before you settle on a loan. Generally, bank loans have a lower interest rate than licensed moneylenders, whose rates are capped at 4% per month under Singapore law. The reason why licensed moneylenders have a higher fee is because you can get quick and seamless transactions if you go through the top money lenders in Chinatown. You can receive your loan within an hour as your credit score is not as analysed while a bank will take a few days to go through the documentation. Especially in emergency medical situations, this may be an important 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.
Are you eligible for a medical loan?
Before you apply for a loan, ensure that you fit the approved criteria of the financial institution you are borrowing from. Singapore citizens, Permanent Residents or a foreigner with a working permit who are at least 21 years of age are eligible for a loan. You must also be permanently employed for the last 3 months. Generally, banks only offer personal loans to those with a minimum yearly income of $20,000 while licensed money lenders will provide a smaller loan even if your annual income is less than $10,000. If you’re looking for a bigger loan from a bank, be sure to have a good credit score as they will require your past bank statements while a moneylender will only need your identification and proof of income.