Medical loan in Singapore ? Things to know about medical loan

Posted by SharonEvans on November 20th, 2014

Medical expenses are something that you can’t have a control over. If you are planning to apply for a medical loan in Singapore, we suggest that you do your research and study well even if you have a bit of time in hand to do so before you decide to take the leap. A medical loan may have more than a few important terms and conditions which you will need to read and understand well before signing the papers. There are a few things you need to know about such a loan.

Understanding the healthcare funding system in Singapore

Address to some of the top names in healthcare industry. Singapore also has one of the most expensive healthcare systems in Asia. To be able to get treated in a decent hospital you will need the support of medical loan in Singapore. What you need to know here is that the healthcare system in Singapore has a twin funding system where both the Government and the individual or their employers bear the expenses. The public healthcare system in Singapore operates as private companies and hence is able to provide a much more advanced multi-disciplinary treatment to its patients.

There are five ways in which the Ministry of health has assured that the individual is able to pay his medical expenses – Central Provident Fund, a part of which goes to the Medisave, Medisave used to pay for personal medical expenses by the individual and their dependents, Medishield as a fail-safe option after Medisave, is a national health insurance plan and finally Medifund, in case all the above options are exhausted or can’t be used. The Medication Assistance Fund is for those who are not able to afford private healthcare.

Role of medical loan in Singapore

The role of a medical loan comes in when the individual is unable to bear the expenses and is looking for a quick and safe way to finance their medical care. Medical emergencies can happen any time and there may be little time to make use of the government layers of protection. In that case you can get in touch with a medical loan provider.

Getting a private medical loan in Singapore is a very common phenomenon and you can get the loan structured according to your ability to repay it and your financial condition. A licensed moneylender will let you know about all the possible formalities that are associated with the loan. If you opt to take the medical loan you will be bound by law to repay it following the terms. A copy of the contract will remain with the borrower. There are different terms related to secure and unsecured loan. For instance, in case of secure loan you can borrow the amount you wish to but if it is a case of unsecure loan then there are certain limitations. Effective from the 1st of June 2012, the interest rate for both types of loans has been capped and moneylenders are allowed to charge only six types of fees.

Lastly, you should check if the medical loan provider is licensed or not by visiting the official government website which has a list of such service providers. After you are granted a medical loan in Singapore you will be given the full principal amount without any deductions.

A medical loan in Singapore has various important points which you should be aware of before you apply for a medical loan.