8 Options When You Need Money for a Medical Emergency

Sometimes, you may find yourself stranded when facing a medical emergency. The worst scenario is when you have no savings or ready cash. Still, many think medical insurance can help with such emergencies.

While this can be an option, sometimes it proves helpless, depending on the emergency type.

There is no need to worry. There are several options to consider in such desperate moments. Explore some of them below.

Credit Cards May Help 

If you have credit cards, they may be your quickest solution during a medical emergency. You only need to swipe them, settle your medical bill, and repay the expenses incurred on your next bill. However, it would be best to repay the expenses by the due date to avoid steep interest costs in credit card finance.

Also, it would help to know that this could be among the most costly options if you cannot repay the credit card charges on time. The annual interest rate could be as high as 40%. You may also face penalties for delayed payments.

Consider Fintech Loans 

If you cannot use your credit card or access a bank loan due to the hush of the situation, you may consider fast loans. Fintech loans are among the easiest to obtain with this option. However, some people find them too costly.

Fintech loan lenders offer loans to individuals with poor credit scores. The best thing is that they are less strict than major banks when reviewing personal loan applications.

Sometimes, these companies approve a loan that the major banks reject. Nevertheless, they charge higher interest rates for their loans due to this leniency. As such, it is advisable to choose these loans only when all other options fail.

Instant Loans

Some lenders, non-banks, and banks may extend fast loans to selected customers. However, this depends on your credit history and banking relationship.

While personal loan disbursement takes up to five days, pre-approved personal loans can be ready quickly. Many lenders now have end-to-end digital applications and processing to make fast loans more accessible.

Consider a Loan Against Your Gold 

Gold is a high-value commodity. Additionally, it has a high level of liquidity. Thus, if you cannot access personal loans, you can pledge your gold jewellery or other gold items to cover your medical emergency.

While loans against securities take a long time to process, you can get gold loans on the same day of application. That means you can sort out your medical emergency bills on your own.

Consider EPF Advance 

You can access funds from your Employee’s Provident Fund (EPF) during a medical emergency. The best thing is that this advance is non-refundable. However, the amount you get depends on your EPF contributions. For instance, you can receive up to 75% of your credit balance.

Previously, EPF had a 20-day delivery period. However, with technology, you can get the money within three days. While spending your retirement savings on emergencies is not advisable, sometimes it may be your only option.

Get a Loan Against Your Credit Cards 

If you are unsure of repaying your credit card dues by the due date, you may consider a loan against your credit card. Credit card providers provide pre-approved loans against their credit cards.

One good thing about this loan is that you can apply online and receive the disbursement within a few hours. However, interest rates can be higher than on other loans. As a result, you may have to consider other options before choosing credit card loans.

Pre-approved Instant Mortgage Top-up Loans 

If your home loan account is active, checking your eligibility for a pre-approved top-up loan is best. Some lenders extend top-up home loans to existing borrowers. Disbursement can be claimed on the day of application.

Apply for a Loan Against Shares 

If you have investments in bonds, shares, or life insurance policies, they can come in handy during medical emergencies. Here, you only need to approach a bank with a long-term and stable banking relationship and apply for a loan against these investments. You can pledge these items and get a loan.

A medical emergency can be stressful, especially if you do not have savings or urgent funds. However, you can easily explore various payday loan options to resolve this emergency.

Furthermore, it would be best to consider multiple options before making your decision since some are more expensive than others. In addition, some may take longer to process than others, meaning you may wait longer to sort out your emergency.