Cash woes? A personal loan to the rescue!

    Personal Loan for Medical Expenses

    Personal loans can be a useful financial tool for a number of reasons, including home renovations, vacations and weddings. When you’re in dire needs of funds for any other reason, you can use a personal loan to meet all your expenses.

    You can never be too prepared for a medical emergency. When it comes to tackling unexpected medical expenses, personal loans can seem like a boon.

    Uses of Personal Loans for Medical Expenses

    You can use a personal loan to pay for various medical expenses such as dental work, surgery, emergency health care or even cancer treatment. Besides your medical expenses, you can also take a personal loan in Malaysia to pay your family’s health care costs.

    While there’s no personal loan meant for medical expenses, any personal loan once approved can be used to pay medical bills. As a personal loan is approved and disbursed as a lump sum payment, it’s easy to cover a large medical bill or multiple medical bills at the same time.

    Compare Personal Loans Available in Malaysia

    Personal Loan Interest Rate Minimum Monthly Income Maximum Tenure Maximum Amount For More Info
    Bank Rakyat Personal loan for Private sector 4.95% p.a. to 9.37% p.a. RM2,000 10 years RM150,000
    Maybank Personal Loan 6.5% p.a. to 8% p.a. RM2,500 6 years RM100,000
    HSBC Amanah Personal Financing-i 10.5% p.a. to 12.5% p.a. RM3,000 7 years RM150,000
    Citibank Personal Loan 5.88% p.a. to 9.80% p.a. RM4,000 5 years RM150,000
    CIMB Cash Plus Personal Loan 8.20% p.a. to 14.66% p.a. RM2,000 5 years RM100,000

    How to Choose Personal loan Tenure wisely?

    The loan tenure is doubly important when you want to pay medical bills with your loan. Many banks in Malaysia do offer long-term loans. You can take loans with maximum repayment periods of 5 years, 7 years or even 10 years. However, a long-term personal loan would equate to a lot of interest.

    To save money on interest payments, it’s advisable that you choose a short-term loan. Besides saving up o interest charges, taking a short-term personal loan means a shorter repayment period.

    When it comes to medical expenses, your circumstances take precedence. If you have a stable income and can manage your monthly expenses, a short-term loan is what you need. However, if you continually incur huge medical expenses, choose a long-term loan whose smaller monthly instalments would be more affordable and wouldn’t burden you financially.

    How Much Should You Borrow?

    The borrowing limit for most personal loan offers in Malaysia starts from RM1,000 and can go up to RM300,000 or more. It can be really tempting to borrow a huge amount especially when you are eligible for it. But, remember that a huge loan amount would attract a higher interest rate. Keep in mind that lower the amount you borrow, lower will the interest rate be.

    So, calculate your financial need for medical expenses before everything else. Borrow only what you really need and prepare a reasonable budget so you can plan your repayments. Once, you get your loan approved, use it solely for the purpose you had previously decided.

    In addition, your eligibility for a higher financing amount would depend on your income and borrowing history. Most times, your application for a higher loan amount may not be approved because of low income levels or a poor credit score.

    How Do You Qualify For a Medical Bill Loan?

    Applying for a personal loan is subject to you satisfying all eligibility criteria specified by the bank. Most banks impose specific eligibility criteria revolving around your age, income and nationality. At times, banks may impose other terms and conditions depending on the kind of loan offer.

    Eligibility Criteria for Personal Loans

    Age Nationality Income
    21 years and above Malaysian or Permanent Resident RM2,000 per month

    Besides satisfying the eligibility requirements, you should also ensure to have a good credit score and a stable financial history. All banks tend to check your credit history and repayment ability before approving your loan application.

    Documents Required for a Personal Loan

    To apply for personal loan in Malaysia, you’ll need to provide proof of your age, income and citizenship. The mandatory documents you’ll need are:

    • Copy of MyKad or NRIC
    • Valid Passport
    • Latest Salary Slips (3 months)
    • Latest Bank Statement (3 months)
    • EPF Statement
    • Form B or Form EA
    • Confirmation Letter from Employer
    • Any other document required by the bank

    Application Process for a Personal Loan

    The application process for a personal loan depends on the type of loan you’ve applied for and the issuing bank. While some banks approve loans instantly, others may take around 7 to 14 working days or longer. If you need funds right away to pay any medical expenses, it’s advisable that you apply for a loan that will be approved within a day or two.

    Is Personal Loan Good Idea for Medical Expenses?

    Personal Loan for Medical Bills: Personal loans are one of the most sought-after loans to pay for medical expenses or consolidate medical debt, but you have to choose the best personal loans which suits your budget and covers all your medical expenses.

    For starters, compare different offers and see which one offers the best value with an online premium calculator. Remember to not accept the first loan offered to you even if you need funds right away.

    Shop around for quotes as much as you can as your chances of getting a loan with low interest rates and a flexible tenure is higher. Choose a short repayment tenure if possible. The biggest draw of a short-term loan is that it helps improve your credit score as you settle your debt faster.

    Make the Best Use of Your Personal Loan

    Once your approved loan amount is disbursed, plan the repayments well in advance. You can set up automatic payments to ensure that you always pay on time. You can even set aside funds to repay your loan each month. Making loan payments on time helps build your relationship with the bank.

    Although medical emergencies and related expenses can be stressful, personal loans can help ease much of your financial burden. Remember to use the money you’ve borrowed wisely and pay it all off on time. A good financial history and repayment behaviour can go a long way in helping you get other banking facilities without a lot of hassle.

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