How Is EMI Calculated on My Medical Loan?

Posted by KushiBL on March 25th, 2020

A medical loan is no different from a personal loan. The EMI calculation methodology that applies to a personal loan also applies to a medical loan. Besides getting an emergency loan at the right time, you can reap better benefits without any push or pull of approval through Buddy Loan, one of the best loan aggregators.

Certain banks can lend medical personal loans with zero processing fees.

EMI calculation methodology on medical loan

The formula is:

P x R x (1+R) ^N] / [(1+R) ^N-1

Where P is the principal amount.

R is the rate of interest per month.

N is the tenure of the loan in months.

^ is to the power of

Features of medical loan

  • Interest rate starts at 11.99%p.a.
  • The loan amount can be a minimum of Rs.1000 to a maximum of Rs. 15 lakhs.
  • Loan tenure can be a minimum of 2 months to a maximum of 60 months.

How are medical emergency loans different from medical loans?

  • Both are similar. In medical emergency loans, anyone can avail a medical loan regardless of their credit history or employment status.
  • A surety deposit may be required.
  • Banks that give medical emergency personal loans charge a higher interest at 14% pa.
  • The tenure is capped at 5 years; this means a higher EMI. Loans are capped at Rs. 15 lakhs; some banks may or may not give higher.
  • These loans can be part-paid or foreclosed.

How to apply for a medical loan?

  • Call the banks customer care or fill the online application form. In the latter case, a representative call and guides you on the process.
  • You may be required to furnish a signed soft copy of your AADHAR card, PAN card and salary receipts.
  • Money is disbursed immediately. In the case of medical emergency loans, it is 5 minutes. In the case of a medical loan, it is 24 hours maximum.
  • The top-up facility is available based on sound credit score. You are free to apply for medical loans from more than one bank.

Medical equipment loan is not medical loan

Often a medical loan is confused with a medical equipment loan. The latter is a business loan to procure medical equipment to set up a business such as a hospital, clinic or laboratory. It is also called as healthcare finance. Weigh your words carefully before you question your customer care.


If used wisely, and taken only when needed, a medical loan is a great savior in times of need. It is advisable only to take this healthcare personal loan to cover critical or dire-need medical expenses.

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Joined: March 24th, 2020
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