How does one raise funds in medical emergencies?

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Insurers may take time to settle hospital bills for treatment of Covid-19 if they feel that the hospital overcharged the customer.

Depending on the terms and conditions of your health insurance policy, insurers may also choose not to pay for some components of the hospital bill.

Recently, the insurance regulator directed companies to ensure expeditious settlement of Covid-19 claims.

Approaching relatives and friends and liquidating your investment is one of the quickest ways to arrange the money. But if you have to take a loan, here are few options you can consider

Use your credit card

This is the quickest way to arrange funds. Most hospitals will allow you to swipe your card. However, do remember that the cost of credit here can be over 40% a year.

Check if you have a pre-approved loan

Based on your credit history with the bank, the latter can have a pre-approved personal loan offer for their customers.

Account-holders can avail of such loans instantly from net banking. The money comes to the account in a few seconds.

Many lending apps, too, can offer a personal loan within a few hours of signing up based on your credit history.

Loan against gold

One of the quickest ways to raise money is taking a loan against gold. With some non-banking financial companies, you can get a loan within an hour if your KYC (know your customer) documents are in place.

Some have also started sending executives to the borrower’s premises.

In this case, lenders don’t look at credit score either. All that matters is the purity of gold.

Online loan against security

The easiest way is to take a loan against fixed deposits. But most banks will require you to visit the branch.

Some banks have started offering loan against securities online. Securities include mutual funds and stocks.

However, banks have restrictions on the kind of stocks that they would lend against.

At present, a loan against mutual funds is offered if you have invested with one of the top fund houses.

You can get up to 50% of the current value of the investments in equity funds and slightly higher in the case of debt funds.

Once you are out of the emergency, make a plan to repay the debt as quickly as possible.

Do you have personal finance queries? Send them to mintmoney@livemint.com and get them answered by industry experts

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