Home / Brand Post / Availing an instant personal loan for a medical emergency? Follow these steps

Unforeseen medical emergencies necessitate substantial funding requirements for medical expenses. To meet such urgent financial needs, unsecured loans like personal loans can easily be a viable solution. Loan disbursal takes place within 24 hours allowing the ease to move ahead with the treatment.

However, you need to consider certain steps to avail such an emergency loan.

Here are a few actors to be followed:

Eligibility criteria

You must fulfill the following criteria to qualify for the personal loan:

Applicants must be an Indian citizen within 23 and 55 years of age.

He/she should be a salaried employee of an MNC, public or private company.


Eligible salaried applicant needs to furnish the following documents:

KYC documents including Aadhar card, voter ID card, and driving license.

Employee ID card.

Salary slips.

Financial statements of your salary account, i.e., bank statements.

CIBIL score

It is mandatory to possess a credit score around or above 750 to avail a fast personal loan. It ensures the lender of your repayment capacity. Additionally, the lender may offer more attractive interest rates for those with higher CIBIL scores.


Fixed obligation to income ratio (FOIR) is the criteria set by the financial institutions to determine loan eligibility based on the net income and fixed obligations of the borrower.

The formula for calculating Fixed Obligations to Income Ratio or FOIR is –

FOIR = (Summation of existing obligation/net monthly salary)* 100

It should be noted that the margin for FOIR should not exceed 50%. Such a FOIR indicates that the applicant has only 50% of his/her monthly income available to accommodate EMIs. Higher FOIR indicates that an applicant can manage credit with more ease.

Borrowers may still avail a personal loan, but the interest rate would be higher.

Upon approval of these factors, the borrower can avail various benefits on a personal loan for medical emergency.


No need for collateral

Being an unsecured loan, this emergency loan allows the borrower to avail credit without the need to pledge or mortgage any asset. Incidentally, the application process becomes hassle-free and time-saving.

Once you fulfil the eligibility criteria, your online loan application will be approved within minutes. Financial institutions may even disburse the funds within a day or two after validating your documents.

Higher loan amount

One of the key advantages of an emergency loan is immediate disbursal of a large amount of money. This substantial funding can be used to meet various types of medical expenses as there is no end-usage restriction on the disbursed funds.

You can finance additional expenses associated with long term ailment or immediate medical procedures with the help of this loan.

Rate of interest

Competitive personal loan interest rates in case of an emergency are provided by most financial institutions. Although such rates are higher in comparison to secured loans, borrowers with higher CIBIL score are provided with lower interest rates.

Additional fees associated with this loan are also negligible. Thus, in case of a medical emergency, attractive interest rates as well as minimum processing fee can help a lot to avail the loan easily.

Flexible tenor

Financial institutions provide instant personal loan with flexible repayment options. Accordingly, you can set an EMI as per your repayment capacity. In order to determine your preferred payment schedule, use a personal loan calculator.

Lenders like Bajaj Finserv allow you to avail loans up to Rs.25 lakh with tenor options ranging up to 60 months. In addition, they also provide pre-approved offers on both secured and unsecured loans such as personal loans, housing loans, business loan and so on. These offers reduce the hassle and simplify the process of availing an emergency loan. You can check your pre-approved offers by providing some essential details online like name and phone number.

Therefore, to prevent a financial breakdown in times of emergency, avail a medical emergency loan only after considering these pointers mentioned above. Nonetheless, follow the above-mentioned precautionary steps to avoid rejection of a personal loan application.

Disclaimer: This content is distributed by Bajaj Finserv. No HT Group journalist is involved in the creation of this content.

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