The COVID-19 outbreak has underlined the necessity of being ready for medical crises at all times. The recent pandemic made us learn that ignoring minor symptoms can cost a life. Gladly, everyone is approaching medical help before the situation goes out of hand. No one knows when the situation can become worse. It is always better to plan earlier and create a medical fund for emergencies.
Even with health insurance, you cannot cover all the expenditures in the event of a medical emergency. In those difficult times, one should need more funding sources like personal loans. Here are several alternatives for funding a medical emergency in the event of a pandemic.
1. Use Savings
Money in your bank savings account is your first emergency fund. Use it as much as you can in case of emergencies. But unfortunately, many people spend their entire earnings and will be waiting for the next paycheck at the end of the month. If you are the one belonging to this category, it is not too late. Save at least 20% of your earnings. It can act as an emergency fund.
2. Personal Loan
A personal loan is one of the best options to fund a medical emergency during the COVID-19 pandemic. Most of the banks offer instant personal loans to their customers. Use them. You can avail of an online personal loan just with a few clicks from your smartphone. You can visit your bank website to calculate your personal loan interest rate if your bank does not offer instant personal loans. Check your eligibility before approaching the bank. Your income and credit score determines your eligibility. It provides the lender with information about your capacity and desire to repay the loan. You may also use a personal loan EMI calculator to figure out how much of an EMI you can afford based on your income, existing spending, and liabilities. If your credit score is good, you can get a personal loan at attractive rates.
3. Borrow From Friends and Family
Medical crises must be addressed right away and cannot be overlooked. So, if you don’t have enough funds to cover such expenses, don’t be afraid to ask your friends or relatives for financial assistance. Once the emergency is over, you can pay them back.
4. Borrow Against Investment
You can use your investments like equity shares, mutual funds, fixed deposits, or even endowment insurance plans as collateral to avail loan. This type of financing option is available in the market, and it is suitable for low credit score individuals.
5. Gold Pledging for Loan
In India, gold holdings are common. People hold gold in physical form or through gold bonds. You can pledge both forms of gold in case of emergencies. Look for lenders who will provide you with a loan against your gold jewelry and contact them.
Building an emergency fund is always good. Of all those five ways through which one can avail funds for a medical emergency, a personal loan is the one that can cover all the expenses during an emergency.
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