Medical loan is a rather new term that refers to those types of loans that can be used for financing medical treatments and surgical procedures. Though these loans are new, the concept of using a loan to pay for medical bills is not new at all. Thousands of people have used personal loans to pay off their general practitioners when they lack insurance or they undergo an elective treatment.
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However, now medical loans are specially tailored to meet the needs of those that want funds for medical procedures. Sometimes, people do not have the cash needed to pay for medical treatment so they decide to postpone the procedures. Medical loans have fortunately solved this problem as they can be used for financing any kind of medical treatment.
What Type of Procedures can be Paid With Medical Loans?
All kind of procedures can be paid with medical loans. Even if you are covered by your insurance or you are going to undergo a treatment covered by the NHS, if you want a particular doctor to perform it and you need to pay for it yourself, you can obtain a medical loan and finance those fees.
But, these loans are usually used for financing elective treatments. Elective treatments are those which are not strictly necessary and neither insurance nor the NHS would order due to being avoidable. The best example of this category is plastic surgery or cosmetic treatments which are only covered under certain circumstances (accidents, a disease that causes cosmetic problems, etc.).
Why Better Than Credit Cards?
As opposed to credit cards, the interest charged for financing a full payment with a medical loan is significantly low. Moreover, a medical loan can provide more funds than the ones included in the credit limit and by using your medical loan you leave your credit card in hand for any additional expenses that may arise after the procedure.
Medical loans are also easier to budget because the amounts of the monthly payments are fixed or vary only slightly while with credit cards you have minimum payments and you decide how much you want to pay. Though this may provide a lot of flexibility, it also makes it a lot harder to plan your finances unless you have enough discipline to avoid temptations and use any savings towards cancelling debt.
Alternatives When Physicians or Clinics Do Not Provide Medical Loans
Not all doctors or clinics provide these loans or are associated with lenders. If there is no financing provided by the physicians, you do not need to despair as there are alternatives for financing elective and non-elective treatments when you currently do not have the amount needed to afford them.
After all, medical loans are nothing but personal loans with a specific purpose. Therefore, it is possible to use regular personal loans (which do not have a specific purpose) for financing a medical treatment even if the terms of the loan were not specifically designed for that use. Personal loans both secured and unsecured are available through local lenders and tons of online lenders. Moreover, these loans are quite easy to qualify for.