Medical emergencies and sudden health issues can happen at any time. Difficult time and situation not only affect physically and mentally, it also affects our finance. Health insurance might cover the bulk of the costs, but there’s often a substantial amount that remains to be paid out of pocket. For those without enough savings, an unsecured personal loan for medical expenses can be a savior. But like any financial decision, it’s essential to understand the nuances.

What is an Unsecured Personal Loan?

An unsecured personal loan is a type of loan that doesn’t require collateral, such as a car or house, to recover the loan amount. This is in contrast to secured loans where assets can be seized by the lender if the borrower defaults. Instead, unsecured loans are based primarily on a borrower’s creditworthiness.

Why Consider an Unsecured Loan for Medical Bills?

  1. Instant Funds for Medical Emergency: Unsecured personal loan has a faster approval time as compared to secured loan. There are hundreds of personal loan lenders who provide instant loan within hour or within a day. You can avail instant funds in case of medical emergency. 
  1. Flexible Amounts and Terms: Unsecured loan can be avail for a specific amount with a certain limit and terms. Most of the lenders provide a personal loan based on your capability to repay the loan that is why monthly salary play an important role to get a personal loan. A borrower should have at least 20,000 INR to avail a personal loan on salary. 
  1. No Risk to Assets: Unsecured loans are collateral free and do not require collateral to recover the loan amount. However, defaulting on loan can harm your credit history and your loan application may reject in future due to low credit score.

 Factors to Consider Before Taking Out an Unsecured Personal Loan


  1. Interest Rates: Unsecured personal loans are popular because of collateral free loans and that is why these loans have higher interest rates as compared to secured loan. There are hundreds of NBFCs and online lenders which provide loan. Check for different lender and compare their interest rate before applying for a personal loan.
  2. Loan Amount and Terms: Don’t borrow more than you need. While it might be tempting to have extra cash on hand, remember that you’ll be paying interest on whatever you borrow. Similarly, consider the loan term. Extending the term might reduce your monthly payments, but it could also mean you pay more in interest over the life of the loan.
  1. Origination and Late Fees: Some lenders charge fees upfront or if you miss a payment. It’s essential to understand any additional costs that could be tacked onto your loan.
  1. Your Credit Score: Your eligibility, interest rate, and loan terms largely depend on your creditworthiness. Before applying, check your credit score. If it’s low, consider ways to improve it or look for lenders catering to individuals in your credit range.
  1. Alternative Options: Always evaluate other options before committing. For instance, some medical facilities might offer payment plans with little or no interest. Or, if possible, consider borrowing from friends or family.

A Few Practical Tips

  1. Negotiate with Healthcare Providers: Before resorting to borrowing, try to negotiate the bill with the hospital or clinic. Sometimes, they might offer a discount or a more affordable payment plan.
  1. Review Your Medical Bills: Errors can occur. Ensure that you’re not being charged for services you didn’t receive and that your insurance has covered what it should.
  1. Seek Professional Advice: If you’re overwhelmed, consider consulting a financial advisor. They can provide guidance tailored to your personal situation.


While unsecured personal loans for medical expenses offer a solution in dire times, they’re not always the best or only option. Carefully consider the benefits and drawbacks, compare multiple lenders, and make informed choices. Your health is paramount, but so is your financial well-being. Making well-informed decisions now can prevent future financial strains. Remember, borrowing money can help you if you’ll use it correctly and repay the loan amount on time.

Previous post Use UPI Payment Methods For Safest Money Transactions
Next post The Rise of CNC Plasma Cutting and Welding in Dubai