Indialends, 23 Oct 2025

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Benefits of Getting a Medical Personal Loan over Health Insurance

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With different products in the market, you tend to get confused about what to choose and which one will be more beneficial for you. Here, we will simplify the utility of medical personal loans and health insurance. This will help you assess, why it is better to get a medical personal loan over medical insurance.

A medical loan is an unsecured personal loan and as the name suggests health insurance is an insurance product.

Medical Personal Loan

This loan can be taken to pay for medical procedures that are usually not covered under standard health insurance.

Health Insurance

It covers the cost for medical treatment and surgeries of the person insured. In most cases, insurance companies pay directly to the hospital. In some cases, you need to pay the amount that will be reimbursed later.

What To Choose And Why?

Quick disbursal and faster approval:

Quick disbursal and faster approval for a medical personal loan make it more favorable option compared to health insurance. A medical loan is a quicker process between the two. The documentation in case of a medical loan is also minimal. It provides a big relief during a medical emergency.

Interest Vs Premium:

Depending on the insurance amount, a high premium is paid in advance, which may or may not be used before the renewal date. Since the medical personal loan is a recent product in the Indian market, the rate of interest is competitive. The repayment options are quite flexible in medical loans.

Cover or Not to Cover:

Medical insurance will not cover procedures like cosmetic surgery etc. The terms and conditions of the medical insurance are sometimes so vague that you end up paying to the hospital even when you are medically insured. On the other hand, a medical personal loan can cover your cosmetic surgery, fertility, and dental treatments, etc. Coverage plays an important role for a potential consumer of either the medical loan or health insurance. Most of the health insurance policies don’t cover STDs (Sexually Transmitted Diseases) like AIDS (Acquired Immune Deficiency Syndrome) or Cancer such as Leukemia or many brain-related ailments. A medical loan covers almost all kind of medical expense.

The Timeline:

If a medical emergency strikes and you use the insurance amount, you cannot reuse it in the same year or before renewal. Also, your premium increases the next year. While one can take a medical personal loan as and when required.

Discounts:

Hospitals might not give discounts and try to use the whole amount for a medically insured patient. But, if you are paying yourself, hospitals consider giving discounts.

Usage:

Health insurance makes you pay high premium lifelong without even using it once since many medical procedures and surgeries are not covered. A medical loan is taken when you need cash for medical treatment. One can take a medical loan for a procedure or check up or surgery. The medical loan amount can also be used as saving for the future.

Risky or Not:

If you are healthy with no medical history, you get health insurance. Age plays an important factor in health insurance and premium. A high-risk individual is someone who has had major surgery or has cancer or other major ailment survivors. Logically, such a patient requires health insurance for the treatment. However, they are denied health insurance because of the high-risk factor. On the other hand, anybody can get a medical loan irrespective of the current or past medical condition. There is no such restriction to avail the medical loan. A reportedly high-risk individual can also get the medical loan.

The Amount Dilemma:

The amount given under the medical loan is as per the requirement of the individual. It can be used to pay the medical bills and expenses, fees of the doctor, admission at the hospital, ICU charges or a surgery where money is required immediately. Under health insurance, only the ailments and surgeries specified in the terms and conditions of your insurance will be covered. If any other medical emergency strikes, you have to bear the cost from your own pocket. Ayurveda and Homeopathy are alternative medicines that some people believe in. Only a handful of medical insurance covers them. However, a medical personal loan is used for such alternative medicine with no questions asked.

Restrictions:

A person holding a medical insurance policy can go to only partner hospitals. With a medical personal loan, you can go to any hospital of your choice and convenience, be it a non-cashless hospital as you can pay cash from the medical loan disbursed to you.

Based on this comparison, you can make a logical and informed choice between the two available options. IndiaLends helps you get the medical personal loan in the quickest way possible at an attractive rate of interest. Visit the IndiaLends website to know more.

IndiaLends is a digital lending and borrowing marketplace that helps you connect with the best lenders based on your credit profile. We provide personalized personal loan offers, best credit cards, and free credit reports.

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