Looking to get EMI options for your surgery?

Getting EMI may appear a tedious task, especially if you are looking for a surgery.

Don’t worry, the only thing is you have to follow the right procedure.

Mykare Health is here to guide you to the complete process of eligibility and approval of an EMI so that your entire process becomes simple and you get through the EMI process without any issue.

Hope this blog will make the process a little easier for you.

What Are the Eligibility Criteria?

Certain eligibility criteria are here for you:

• The age limit of the borrowers usually falls between 21 and 65 years.

• Lenders assess the borrower's income to ensure they have the financial capacity to repay the loan.

• Borrowers are generally required to be employed or have a steady source of income.

• A good credit score demonstrates the borrower's creditworthiness and ability to manage debt responsibly.

• Burrowers should have a clean credit history to determine their repayment behaviour with previous loans or credit cards.

• Lenders evaluate the borrower's DTI ratio also to assess the financial burden of the borrower.

• Collateral may be needed by the lenders, such as property or a vehicle, to secure the loan.

How Do You Apply For The Loan?

• For the type of loan and the interest rate you want, you will have to explore different banks, and financial institutions.

• Go through the eligibility criteria of the lenders and their requirements to make sure you meet all their requirements.

• Determine the type of loan that best suits your needs, whether it's a personal loan, loan for a surgery, or any other type of loan.

• Collect all the necessary documents such as identification proof, address proof, income proof, employment proof etc.

Documentation Procedure

• Collect all the necessary documents for the loan according to your lender’s list so that there is no delay in the process.

• Make photocopies of your original documents.

• Double-check the lender's documentation requirements to ensure you have all the necessary paperwork.

• Complete the application forms provided by the lender. Make sure you fill all the required fields accurately.

• Organise your documents in the order specified by the lender or as per the application checklist.

• If needed, visit the lender's office to submit your documents in person.

Credit Evaluation Procedure

• The lender checks the credit score of the borrower for the credit risks.

• The lender goes through all the credit report of the borrower to get the basic information such as the borrower’s credit history, credit account, payment history, or any other setbacks which might be there.

• The lender finds out if the borrower has a record of timely payments or not.

• The lender considers the borrower's credit utilisation ratio also.

• The lender makes sure whether the borrower will be able to handle additional debt payments or not.

How Does the Lender Decide for the Final Approval?

• The lender examines the basic credit report of the borrower, which includes the payment history, credit score etc.

• The lender finds out whether the borrower has the steady source of income or not to repay the loan. He should be able to handle extra expenses as well.

• For secured loans, such as home loans, the lender may assess the value and condition of the collateral which is offered to secure the loan.

• Some lenders may ask for the purpose of the EMI, including the type of surgery and its total costs. They may also ask for all the documents of the surgery from a reputed hospital or the doctor.

• The loan amount, interest rate etc. depends on the credit profile and financial situation of the borrower.

• The final approval is granted once all the criteria are satisfied.

How Do You Sign the Final Agreement?

• Before signing the loan agreement, make sure you understand all the terms outlined in the agreement.

• If you have any questions about the terms of the agreement, you should get it cleared.

• You can seek legal advice, if you are not sure about certain things.

• Once you're satisfied with the terms and have clarified any questions, sign the loan agreement as instructed by the lender.

• You may be required to have a witness also.

• Make sure you have a copy of the records with you after the loan agreement.

How Do The Funds Get Disbursed?

• Before disbursing the funds, the lender verifies that the loan agreement has been signed by both the borrower and the lender, and all required documentation has been submitted and approved.

• The lender determines the disbursement method.

• The timing of fund disbursement depends on the lender's policies and the type of loan.

Setting Up the Final EMI

• Refer to the loan agreement to confirm the amount of EMI, interest rate, and the date of the first EMI payment.

• Check and finalise the frequency of EMI payments based on the terms specified in the loan agreement.

• Make sure that you have a bank account from which the EMIs will be debited.

• Auto-debit mandates can be used to transfer the amount, allowing the lenders to automatically deduct the EMI amount from your bank account on that particular date.

• EMI amount can also be transferred from your bank account to the lender's designated account.

• Keep track of your EMI payments by maintaining a record of your documents.

How Do You Repay On A Regular Basis?

• If your lender offers the option, consider setting up an auto-debit arrangement.

• Set up reminders on your calendar or smartphone to alert you about EMI due dates.

• Include your loan EMIs as a fixed expense in your monthly budget.

Closure of Loan

• Once you've made all the repayments according to the terms of your loan agreement, your loan balance will be reduced to zero.

• If there are any outstanding fees, or interest for the last payment, ensure that you settle these amounts along with your final instalment.

• After the final payment is received, the lender will issue a loan closure letter or a No Objection Certificate (NOC) confirming the closure of your loan account.

• The closure of your loan account will be reported, and your credit report will be updated accordingly.

• Read the loan closure letter carefully to ensure that all details are accurate. Keep a copy of the letter for your records.