Finding medical loans and medical finance in South Africa
Losing your health and falling sick can end up being quite expensive. The cost of medical emergencies can put your finances in intensive care even after your recovery from sickness. Even if you have health insurance, it is possible to end up with thousands of rands in medical bills. It’s either that or you might be faced with a medical emergency that your savings can not cover. In such times, a medical loan can be the lifesaver you need.
A medical loan is money that is advanced to you so that you can cover your medical expenses. The lender will then arrange for you to pay back this money over a period of time. You can use this cash to pay for preventive expenses or emergencies.
How do medical loans work?
A lot of medical loans are not secured. That means you don’t have to put up your belongings as collateral or security for the loan. Unsecured loans are usually given to people that have a good credit score. This is because it might not be safe for the lender to provide you with a loan if you have previously missed payments or an unproven track record.
If your credit score is low, you might have to secure your loan with some of your assets. This lessens the risk for the lender since they have something to hold on to should you fail to repay your debt. Generally, you can borrow between R2000 and R3000 and loan terms can be from 1 year up to 5 years. Check this article for tips on how to improve your credit score quickly.
Reasons why one might want a medical loan
- Emergency medical bills
- C-section
- Surgery
- Dental work
- Urgent care
- Cosmetic surgery
There are medical procedures that cover urgent life-or-death situations. If something like that happens, getting medical attention would be the first priority, and a medical loan can be one way to get the treatment you need.
Some treatments, however, are elective, and they are not life-threatening. While they might have the potential to improve your comfort or quality of life, they might not be urgent. Still, saving up for such procedures might be difficult, and medical loans can be of great help.
What are medical practice loans?
Some loans can be provided to medical professionals who are looking to start or expand their own businesses. This type of loan typically covers operational costs and purchasing of inventory or equipment.
From a medical loan provider’s standpoint, doctors have some qualities that make them good loan candidates. These include the following.
- Strong earning potential
- High net worth
- Stable income
Doctors who already own a practice and are looking to expand are also excellent candidates for a medical practice loan.
What are medical equipment loans?
Doctors can get loans for upgrading or buying new tools. These loans are useful when buying large pieces of equipment, like an MRI machine. This is because the machine can be used as security for the loan itself.
Because of their self secured nature, these loans are usually easier to obtain than other types of loans. Lenders view these loans as low risk since they can recover their money quite easily should the borrower fail to pay it back.
What to consider when getting a medical loan
Getting a loan to help with your healthcare-related bills is indeed a good idea. One should note, however, that while a medical loan might be the only available option, it can also be quite damaging to your finances if you do not do your research well. Take care to avoid making rushed decisions when faced with urgent medical expenses.
Consider the following crucial factors before taking out a medical loan.
- What is the loan’s interest rate? This is the cost of borrowing. It is how a lender benefits from giving you money. You should make sure that you do not get a loan with an interest rate that is too high. Higher interest rates mean that the loan is expensive and you will pay a lot more on top of what you borrowed.
- What is the loan’s annual percentage rate (APR)? The APR is the actual annual cost of borrowing. It includes total fees and interest.
- Is the interest rate fixed or variable? A fixed interest rate never changes from the time you take out a loan to the time you finish paying it off. In contrast, a variable interest rate changes as the rates rise and fall. While it might allow you to benefit from lower rates, it might also result in you paying more than planned.
- How much is the initiation fee? Most lenders charge a one-time initiation fee when you take out a loan. Some require that you pay it upfront and some spread it out together with the monthly instalments. The initiation fee is used to cover the cost of processing the loan.
- How long does it take to receive the money? Find out how quickly the money will be sent to you after approval. This factor is quite important if the loan you’re searching for is for a medical emergency. For such, you need a loan with an easy and quick application process, and which will be paid into your account more quickly.
What are the general requirements for a medical loan application?
- A South African ID;
- Minimum age of 18 years;
- A regular, monthly income;
- Payslips and bank statements (proof of income);
- South African bank account details;
- Contact information;
- Proof of address; and
- A good credit score.
If you meet the medical loan requirements for your chosen lender, the next step is to visit their website by clicking the correct “Go to Site” button on this page. Once you’re there, you can begin the online application process.
Find your monthly instalments with the medical loan repayment calculator
The medical loan repayment calculator can be used to find out how affordable your instalments will be. It is quite easy to use. Simply adjust the sliding tools provided to select how much you need and how long you need to repay the loan. Click calculate, and you will immediately see an approximate monthly payment for each lender in the comparison tables above.
This loan calculator is, therefore, a useful tool that helps to determine the best loan for your budget. In addition, it helps you compare lenders so you can find the best medical finance available.
Advantages of Medical loans
- Easy application process: That means you can make a medical loan application in the comfort of your home. The application process is quick, and the money can be made available to you within a day in some cases.
- Competitive interest rates: Having a high credit score and a positive credit history means you can manage to get a low, affordable interest rate on your medical loan.
- Flexible payment periods: Some payment periods can stretch as far as five years which gives you enough time to repay the loan if your savings are low.
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