Healthcare costs in the Philippines are no joke. Even if there is the government-run Philippine Health Insurance Corporation (PhilHealth) and commercial health insurance services, Filipinos often shoulder high out-of-pocket costs. Getting sick or hospitalized can easily become a financial burden.
Good thing you can use personal loans for medical emergencies in the Philippines given their versatility and fast approval. Let’s discuss if a personal loan is a better choice for covering unexpected medical expenses.
What are personal loans?
Personal loans are a type of unsecured loan that don’t require collateral. They are also easier to qualify for. You can borrow a minimum of PHP 20,000 or more, depending on your eligibility, which you can pay with fixed interest rates for a year or up to three years.
You can use personal loans for multiple purposes. However, in our discussion on how to benefit from personal loans, we recommend using them for purposes that offer value. One of these purposes is paying for medical expenses, especially unexpected ones.
Why get a personal loan for medical emergencies?
Medical emergencies come as a surprise and often require immediate payment. If it is available, some may dip into their life savings while others may borrow from a loan shark, but there is a better option. Here are reasons you should opt for a personal loan for medical expenses:
Fast and easy approval
Metrobank offers fast-approved personal loans which are processed in just seven to ten business days.
It’s also easier to be eligible for personal loans because of their lower salary eligibility and fewer documentary requirements.
So, if you’re in a pinch, this type of loan can provide the much-needed accessible financial support.
No collateral
Personal loans are unsecured loans, which means that they don’t require collateral. With Metrobank, you can loan as low as PHP 20,000 or up to PHP 2 million without having to put up your home, car, or any other asset as collateral.
This means that you can borrow money through personal loans even if you don’t have assets to put up as collateral. All you need is proof that you can pay the monthly amortization.
Flexible payment terms
Repayment is also less stressful with personal loans. Choose a term that makes the monthly amortization manageable for you. You can repay your loan in increments of 12, 18, 24, and 36 months, or up to 5 years for some banks.
Lower interest rates
Compared with loan sharks and payday loans, which are small, expensive loans you repay all at once, on your next payday, personal loans offer much more affordable interest rates that make it lighter on the pocket. With lower interest rates, your loan’s total cost remains relatively lower, making it easier to pay off.
Protect your finances
Personal loans can help individuals and families protect their finances in case of unexpected expenses, such as medical emergencies.
A personal loan is more accessible and has lower interest than other types of short-term loans, especially payday loans.
Instead of taking out high-interest loans, selling assets, or dipping into your life savings to cover emergency expenses, you can apply for a personal loan.
What is the difference between medical loans and health insurance?
One of the ways families are preparing for emergencies is by getting health insurance. Unfortunately, more Filipinos don’t have health insurance. If you can get a medical loan, is that the same as having health insurance?
Medical loans and health insurance are not the same. Neither are also comparably better than the other. Here are their differences:
Health insurance must be purchased in advance. You also typically pay a monthly premium to be covered. In contrast, you can take out a personal loan only when you need it and pay for it after.
Depending on the policy, your health insurance may cover all or only part of the medical costs. Meanwhile, a personal loan may be used for medicine, treatments, and all other needs while combating an illness.
Some health insurance plans may offer income replacement for long periods of incapacitation if the patient meets specific criteria. A personal loan may also be used to supplement lost income.
Overall, both health insurance and personal loans are a great way to cover medical emergencies. Both can offer financial support when you need it.
Are you ready for medical emergencies?
Personal loans offer numerous benefits that would be useful in times of emergency. This is why it’s a good idea to get a personal loan for medical emergencies. They can help you prepare for unexpected medical emergencies or pay for medical bills in a crunch. Secure your and your family’s health and wealth with Metrobank Personal Loans.
