Guide to Personal Loans for Medical ExpensesGoBear Guides | Helping Filipinos become money smart with unbiased reviews and comparisons
Why get personal loans for medical expenses?
Hospital bills tend to be expensive, especially those that involve surgeries or other intensive medical procedures. Given this, it can be hard to pay down those bills. Complicating the matter further, hospitals tend to refuse releasing certain important documents until the hospital bill is fully paid. And in the worst of cases, even the combined benefits of insurance policies, health cards, and PhilHealth end up not being enough to cover the bill. Given the relative ease of application and approval, using personal loans for medical expenses can be a good alternative for getting the money needed to pay down that hospital bill.
Depending on the bank, the usual maximum amount that lenders are willing to grant on personal loans for medical expenses can reach up to ₱2,000,000. However, take note that the actual maximum amount a bank can grant will definitely depend on a borrower’s monthly income and the duration of the loan being requested.
While banks don’t explicitly offer a loan for hospital bills, although most loans list consolidation as one of the valid purposes for getting a personal loan. Here are sample computations for two banks that offer personal loans:
Security Bank personal loans for medical bills
With Security Bank’s personal loan offering, borrowing ₱750,000 for debt consolidation purposes and agreeing to pay the balance over one year will lead to a monthly amortization of ₱72,925, inclusive of a ₱2,000 fee and ₱125,100 in interest payments, which is 14.26% of the principal borrowed. The Security Bank personal loans for medical bills are available to people of ages 21-65, with minimum monthly income of ₱20,000 and an active landline number.
Chinatrust personal loans for medical bills
With Chinatrust’s personal loan offering, borrowing ₱750,000 for debt consolidation purposes and agreeing to pay the balance over one year will lead to a monthly amortization of ₱72,925, inclusive of a ₱1,500 fee and ₱125,100 in interest payments, which is 14.27% of the principal borrowed. The Chinatrust personal loans for medical bills are available to people of ages 25-65, with minimum minimum monthly income of ₱20,000 and an active landline number.
Most banks offering personal loans for medical bills will only take about a week or less to have your application approved. It’s always best to be prepared ahead of time and prepare the right documents needed. Some of these documentary requirements are:
● Photocopy of one or two IDs, preferably government-issued
● Proof of billing with your address
● Certificate of employment and latest payslips, preferably three months’ worth (for employed applicants)
● DTI or SEC registration documents (for self-employed applicants)
● Latest BIR Income Tax Return filings
Benefits and disadvantages of using personal loans for medical expenses
The key element to the appeal of a personal loan is the relative minimal paperwork required. Since a personal loan is often unsecured (meaning, it does not need to tag an asset a s collateral in case the borrower defaults on the debt) and is granted regardless of purpose, it can be a good source of funds to settle a hospital bill.
However, a personal loan has a relatively high interest rate, especially when that loan is stretched over a longer period of time. Given that, it would still be best to seek out more ways to settle the bill, and not just rely all of it on personal loans for medical bills.
Are you searching for the best personal loans for medical bills? Compare personal loans with GoBear to find the best rates available.