Evaluate zero-cost medical loan before borrowing

Instead of charging an interest rate, the lender may deduct one or two equated monthly instalments before disbursing the money

The rising cost of medical treatment could throw your finances out of gear if you don’t have sufficient insurance. To tap this market, a few non-banking finance companies (NBFCs) and financial technology (fintech) start-ups have started offering medical loans at a lower rate than personal loans. Some are even offering loans at zero per cent. 

“Of the total personal loans we disburse, around 25 per cent are taken for treatment of medical illnesses. We, therefore, recently launched a separate medical loan category, in which the interest cost is lower,” says Prithvi Chandrasekhar, head of risk and analytics, InCred. He points out