Loan Against Property for Medical Expenses: A Brief Guide

Medical emergencies are often unplanned and expensive. Thus, it is quite common for people to find it compelling while addressing the medical expenses out of their own pocket. This goes without saying for people belonging to the lower and the mid-income category. Talking about the coverage provided by medical insurance (if you have one), there are times when the cost is beyond the insured sum. Hence, availing a loan to address the medical expense becomes inevitable, and the only way out is to find the right one for the purpose.   

Secured Loan or Unsecured Loan: Which is the Better Way Out?  

Secured or unsecured, both are a suitable solution for the said purpose. However, one must compare both types of options available and choose the affordable one - based on the final amount one has to pay against the loan for medical expense. Based on that, a loan against a property for medical expense from a trusted lender can be a feasible alternative.

Perks of taking a Loan Against Property for Medical Expenses:-

> Loan at low-interest: First of all, the loan would be available at a very low-interest-rate compared to unsecured counterparts. Besides, you won’t require a good CIBIL score to qualify for the loan. That said, a good repayment history can get you good deals.

> Wide Repayment Tenor: The repayment tenor, since the loan is secured by collateral, would be longer.

> Tax Benefits: Since the loan would be used for addressing the expenses incurred through a medical emergency, the borrower would be entitled with tax benefits under section 80D.   

Bottom Line: The maximum loan amount varies as per the market value of the property pledged as collateral. Hence, plan accordingly.   

Also Read: HOW TO CHOOSE A LOAN TO ADDRESS A MEDICAL EMERGENCY IN INDIA