Can I get a medical loan with a low CIBIL score?

Getting a medical loan with a low CIBIL score (below 650) is difficult but not impossible. Some NBFCs and fintech lenders may offer loans at a higher interest rate. It is advisable to apply with a co-applicant who has a good credit score to improve your chances of approval.

What is the typical interest rate for a medical loan in India?

Medical loan interest rates in India typically range from 10% to 24% per annum. The final rate depends on your credit score, income, employment stability, and the lender's policies. Banks generally offer lower rates than fintech platforms.

How quickly can I get a medical loan disbursed?

Disbursal times vary. Fintech lenders and pre-approved offers from banks can disburse the loan amount within a few hours to 24 hours. Traditional bank applications may take 2 to 7 days.

Can a medical loan be used for any medical expense?

Yes, a medical loan is a type of personal loan, so the funds can be used for a wide range of expenses, including doctor's fees, hospital bills, surgery costs, diagnostic tests, medicines, and even post-hospitalization rehabilitation costs.

Medical Loans in India: A Complete Guide on How to Apply (2025)

When Savings Aren't Enough: Understanding Medical Loans

A sudden medical crisis can create immense emotional and financial pressure. While government schemes and health insurance provide a crucial safety net, sometimes a family may find themselves uninsured or facing expenses that are not covered. In such critical moments, arranging a large sum of money quickly becomes the biggest challenge. This is where a **medical loan** can serve as a vital financial tool.

A medical loan is essentially a type of personal loan taken specifically to cover healthcare-related expenses. This guide provides a comprehensive overview of medical loans in India, explaining when to consider one, the eligibility criteria, the required documents, and a step-by-step process to apply for one in 2025. It is important to explore all options, which you can read about in our guide on getting financial help for medical emergencies.

When Should You Consider a Medical Loan?

A medical loan should be considered after you have explored other avenues. It's a responsible choice in situations like:

You do not have any health insurance or are not eligible for a government scheme.
Your health insurance has a co-payment clause or sub-limits, and you need to pay the remaining amount.
The specific treatment required is not covered by your existing insurance policy.
You have exhausted the sum insured limit of your existing health policy for the year.

Key Features of Medical Loans in India

Quick Disbursal

Many banks and fintech lenders understand the urgency of medical needs and have streamlined processes to disburse the loan amount within 24 to 48 hours.

No Collateral Required

Medical loans are unsecured personal loans, meaning you do not need to pledge any asset like property or gold as security.

Flexible Repayment Tenure

Lenders offer flexible repayment tenures, typically ranging from 12 months to 60 months (5 years), allowing you to choose an EMI that fits your budget.

Comprehensive Coverage

The loan amount can be used for a wide range of expenses, including surgery costs, hospital bills, doctor's fees, medicines, and even post-operative care.

Step-by-Step Guide to Applying for a Medical Loan

Follow these steps for a smooth application process:

Step 1: Assess the Required Amount
Get a clear estimate of the total medical expenses from the hospital. It's wise to apply for a slightly higher amount to account for any unforeseen costs.
Step 2: Check Your Eligibility
General eligibility criteria include being an Indian citizen, having a minimum age of 21, and having a stable source of income (salaried or self-employed). A good CIBIL (credit) score (typically 700+) is crucial for quick approval and lower interest rates.
Step 3: Compare Lenders and Interest Rates
Do not apply to the first lender you find. Compare the interest rates, processing fees, and repayment terms offered by different banks (like HDFC, ICICI), NBFCs, and fintech platforms.
Step 4: Gather the Required Documents
Keep the necessary documents ready. The standard list includes:
- Identity Proof: Aadhaar Card, PAN Card, Passport.
- Address Proof: Aadhaar Card, Utility Bills, Rental Agreement.
- Income Proof: Latest salary slips and bank statements (for salaried), or ITR and business financials (for self-employed).
Step 5: Submit the Application
You can apply online through the lender's website or mobile app, which is the fastest method. Alternatively, you can visit a bank branch to apply in person. Fill the application form accurately and upload/submit your documents.

Frequently Asked Questions (FAQs)

Q. Can I get a 100% loan for my medical expenses?

Yes, most lenders can finance up to 100% of your estimated medical expenses, subject to your eligibility and the loan amount approved.

Q. Will the loan amount be paid to me or the hospital?

In most cases, the loan amount is disbursed directly to your personal bank account, giving you the flexibility to pay the hospital and other related expenses. Some lenders also offer an option to pay the hospital directly.

Q. Are there any tax benefits on a medical loan?

While the principal amount of a personal loan for medical purposes is not eligible for a tax deduction, you may be able to claim a deduction on the interest paid under Section 80D of the Income Tax Act, subject to certain conditions. It is best to consult with a financial advisor for this.