Digitisation has reformed the Indian lending market widely as more number of users now rely on the digital medium. In this regard, the Indian online loan market is one of the fastest-growing industries owing to the high transparency it offers along with other benefits. The online lending rate increased by almost a CAGR of 69% between FY2010 and FY2014, revealing how customers were slowly transitioning to the internet for financial assistance.
With such a growth percentage, it is evident that online loans have numerous benefits. A medical emergency loan application online, for instance, leads to fast and hassle-free approval. This is vital, as money is a crucial factor for any medical emergency.
How applying for a loan online is helpful
Unforeseen situations, such as medical emergencies can cause more damage than one can expect. Apart from the physical and emotional strain, lack of money is a common concern during such an instance.
Thus, to evade such financial stress, individuals can apply for an emergency loan and acquire the multiple benefits it offers. Mentioned below are the pointers that discuss the reasons why online loans are preferable as well as beneficial.
- Time-saving
Individuals can apply for unsecured loans like personal loans online and use the availed amount to pay their medical bills instantly. The online process saves one from the trouble of visiting physical branches or following the tedious application procedure. Instead, one can look for prospective options online and apply for the loan. This saves time as well as the hassle of visiting a financial company.
- Calculation of EMI
The online platform of financial companies offers borrowers a tool to calculate equated monthly instalments (EMIs). This gives them an insight over the EMIs they will have to pay in future against the medical emergency loan they are opting for. This helps them make a financially feasible decision.
- Easy to apply
The application procedure is simpler as one just needs to browse to the official site and fill up the loan application form with valid credentials. However, they must qualify the personal loan eligibility criteria to be able to avail the loan.
Besides, financial companies like Bajaj Finserv simplify the loan application process for its existing customers with the inception of pre-approved offers. These offers are available on multiple financial products such as personal loans, business loans, etc. Individuals can check pre-approved loan offers instantly by submitting their name and contact number.
While the pointers mentioned above are a few benefits that individuals, applying for an unsecured loan online can accumulate, there are several other benefits besides these for such an unsecured form of credit.
- Quick disbursal of the loan amount
Financial companies that accept online loan applications also process the application quickly. Borrowers can pay off medical debt with personal loan as the amount is disbursed within 24 hours.
Other benefits of personal loan
- No requirement of collateral – Individuals do not need to hypothecate assets for such loans, as these are unsecured. Nevertheless, an applicant must be eligible for availing the credit. The criteria financial institutions generally adhere to are as follows.
(For salaried individuals)
- Age should be between 23 and 55 years.
- A salaried employee of an MNC, private, or public firm
- Salary range depends upon the city of residence.
(For self-employed individuals)
- Age limit is 22 to 55 years.
- An individual should have a CIBIL score of 750 and above.
- Flexible tenor
Several financial institutions offer borrowers the loan at a flexible tenor of up to 60 months. As a result, individuals can borrow personal loans for medical emergencies for a tenor, which suits their financial standing better.
For example, they should consider their monthly income and monthly financial obligations to determine their repayment capability. After this is done, they can take help of the EMI calculator and check that which tenor value makes the repayment easy for them.
However, it is to note that extended tenor will increase the cost of the loan, as the interest levied will be substantial. Thus, borrowers should make an informed decision before they apply for a loan online.
- No end use restriction
Such unsecured medical emergency loan has no end-use restrictions and borrowers can use it for several purposes like
- Hospital expenses
- Doctor consultation fee
- Medicine bills
- Diagnosis and tests
Apart from the medical requisites, they can also utilise the fund if the patient needs to travel or for any other expense. This makes the loan feasible.
With these many benefits and easy access, online loans are shaping up the future of the financial market in India. Now, individuals can get themselves out of this challenging situation by quickly applying for a loan through the digital medium.