Everything You Need to Know About Healthcare Credit Line in India

Healthcare credit line is a credit amount you can get to pay the hospital bills without feeling burdened. It can be up to 7 times your salary with EMI options ranging from three to 24 months.

Investing in healthcare is still rare in India. Most people still depend on insurance provided by their employer and rarely go to the lengths of buying one themselves. Hospital bills can often become a burden. In fact, reports suggest that most Indians are just one medical emergency away from poverty. 

The First Step to Medical Wellness

Wellness means the act of following healthy practices. Medical wellness is the practice of risk-proofing yourself from the unforeseen. A healthcare credit line–also known as a medical credit line–is a way to attain medical wellness. 

A credit line is a flexible loan you can seek from a financial institution in your time of need. The amount of credit is predetermined, similar to a credit card. The amount utilised must be returned over a specified period with no or minimum interest rate depending on the institution. 

Similarly, a healthcare credit line is a credit amount you can get to pay the hospital bills without feeling burdened. Some companies offer credit lines up to 7 times your salary with EMI options ranging from three to 24 months.

The Advantages & Disadvantages of Healthcare Credit Line

According to a 2021 Niti Ayog report, 63% of all healthcare expenditures are done out of pocket. A Healthcare credit line can be a blessing in disguise in case of an emergency.

Healthcare credit lines can be used to cover any health or medical expenses, including medicines, diagnostics, consultations, hospital bills, physiotherapy sessions etc. 

Things To Remember

• A Healthcare credit line is a better option compared to a traditional loan. 
• The loan repayment options are flexible and favourable. 
• It is still a loan and impacts your credit score.
• It is a benefit offered by an employer.
• If you change your organisation, the new employer may or may not have this option.
• The amount depends on your salary since it is calculated based on your ability to repay the amount. 
• You cannot use the credit line to pay for gym subscriptions, spas or non-medical expenses.

Health insurance is complex. Even after buying the most comprehensive policy suggested by your agent, some diseases may not be covered. That’s why it’s important to get unbiased suggestions from experts who do not sell you a policy just to meet a target. If you are looking for an unbiased consultation, talk to our insurance experts.