Health is becoming more and more expensive, so those in need of care, such as the elderly, are often called upon to put their wallets in hand. Despite this, it does not mean that those who cannot afford to support certain figures must necessarily give up on treatment. Loans Proceeds for medical expenses are certainly very interesting from this point of view. Thanks to them, it is possible to immediately receive additional liquidity, in order to bear all the expenses concerning one’s health. Let’s see some examples for which you can apply for a loan for medical expenses :
- cosmetic surgery;
- surgical operations;
- admissions to nursing homes;
- check-up to be carried out directly in the clinic;
- dental or dental care;
- expenses for assisting the sick and non-self-sufficient people;
- beauty treatments;
- physiotherapy and rehabilitation courses following injuries or trauma;
- specialized nursing care.
How to apply for a loan for medical expenses
When dealing with medical expenses loans, you can choose between two different solutions, we are talking about the personal loan and the assignment of the fifth for medical expenses.
A personal loan is a form of financing that allows the applicant to receive an additional fee with respect to the costs of the health intervention. This is a very useful solution for resolving any unforeseen events. The personal loan, as well as for the assignment of the fifth for medical expenses, is characterized by a great speed both in the acceptance of the request and in the disbursement of the economic amount.
As for the sale of the fifth for medical expenses, we are talking about the most common financing formula, in particular, to face expenses of this type. The interest rates of this solution are certainly much more advantageous than others. In any case, the installment to be repaid can never be greater than one-fifth of the salary or pension received monthly, net of income.
What are the requirements for obtaining the loan?
Clearly, as with any other loan, suitable guarantees must be provided in order to obtain a medical expenses loan. This means that it will be necessary to demonstrate certain creditworthiness and a solid financial situation. Surely, the optimal conditions for achieving the goal are represented by elements such as certain income, given by the salary or pension, which must be higher than the minimum. A permanent contract will give greater security to the credit institution to which you apply, regardless of the sector in which you operate.
Not only do banks provide loans for medical expenses, but also numerous financial companies. All you have to do is to prove your credit and financial reliability, in order to ensure the payment of the amount of interest on your current account, and then pay it through the monthly installments.
Let’s see together what are the main factors with which financial companies evaluate the disbursement of a loan for medical expenses.
First of all, we have the income level, in fact, no credit institution would accept a loan request without making sure that the applicant has secure income behind them. Furthermore, their size is decisive in the repayment of the installments.
Risk policies are another rather relevant criterion, given that any bank or credit institution has a certain risk policy, with which it evaluates which requests to accept and which not. This depends on the credit scoring principle, that is the statistical data possessed by each institution. Through the computation of these data, the credit institution or bank will be able to keep defaults below a certain level.
Finally, we have creditworthiness, which is a very important factor in the valuations of any financial company, closely linked to the level of risk. The Central Risks are crucial for assessing creditworthiness, therefore banks will always tend to follow all their indications. This means that, if you have been insolvent in your credit history, the applicant will have many difficulties in obtaining the desired loan.
What is the best solution?
We can affirm that the assignment of the fifth, under various aspects, is the best solution and also the most used, especially to support medical expenses. The most significant benefit of this solution is that the lender can enjoy greater flexibility regarding the evaluation criteria. This is due to the fact that the monthly payment to be paid is directly deducted from the applicant’s current account. In this case, the pension institution or the employer will have to pay the amount of the monthly payment into the lender’s coffers.
Thanks to the assignment of the fifth, following an aesthetic treatment, a surgical operation, or a dental or dental treatment, there will be no need to have any worries about the payment of an installment. The sale of the fifth is undoubtedly the most convenient form of loan for those who suffer from a certain financial constraint, considering that they can only count on their own secure income. On the other hand, the lender will be sure to recover the money lent.
What are the elements present in the medical expense loan agreement?
The law expressly establishes what are the elements that the loan agreement for medical expenses must necessarily contain. Here they are below:
- APR (Annual Effective Global Rate);
- interest rate;
- methods of financing;
- amount of the installments to be paid;
- charges for arrears;
- total amount to be paid;
- total number of installments to be paid;
- due date of each installment;
- possible guarantees required;
- amount and reason for the various charges not included to calculate the APR;
- analytical conditions that can make changes to the APR;
- the total amount of the loan;
- possible insurance coverage required.
Conclusions
It is good to know that it is possible to pay off the loan for medical expenses early. The law, in fact, establishes this possibility, with the penalty to be paid which can never be greater than 1% of the entire financial capital.
As we have already had the opportunity to highlight, maximum freedom is granted to the applicant regarding the activation of insurance coverage.
