The medical expenses loan.
With the medical expenses loan it is possible to obtain liquidity to face both important expenses for the health of the person, but also other highly requested interventions, such as beauty treatments and cosmetic surgery operations.
CHARACTERISTICS OF LOAN MEDICAL EXPENSES
With this type of loan it is possible to obtain financing for different types of medical treatment, the most frequent cases are listed below:
- Surgical interventions;
- Physiotherapeutic and rehabilitative treatments;
- Dental and dental care;
- Expenses for nursing homes and for the care of the sick and non self-sufficient people;
- Beauty treatments and cosmetic surgery.
There are two different ways to obtain financing for medical expenses:
- Targeted loan: the clinics where the treatments are carried out already offer targeted loan solutions. The advantage is that the procedure is very fast, the sum financed is immediately recognized to the clinic and the user pays the loan installments according to the repayment plan;
- Liquidity loan: the advantage of this solution is that the user can request an additional share of money in addition to the medical expense, to face any unexpected costs that are not payable with the finalized loan. It is clear that the total sum requested must fall within the financing criteria established for the liquidity loan. Also in this case the procedure of the financing procedure is fast.
In order to obtain a loan, medical expenses, specific requirements are not required, in addition to a certain income from work or a pension, and good credit reliability.
THE ELEMENTS OF THE CONTRACT
The law states that a medical expenses loan agreement must contain the following elements:
- the interest rate applied;
- any other prices and conditions applied, including higher charges in the event of late payment;
- the amount and methods of financing;
- the number, amounts and due dates of the individual installments;
- the annual percentage rate of charge (APR);
- the detail of the analytical conditions according to which the APR can be possibly modified;
- the amount and reason for the charges that are excluded from the calculation of the APR;
- any guarantees required;
- any insurance coverage required and not included in the APR calculation.
The law guarantees the consumer the possibility of carrying out the early repayment of the loan. If the consumer decides to choose this option, in addition to the reimbursement of the residual capital, he could pay a penalty that must not exceed, by law, 1% of the financed capital; the exact terms of the penalty are shown in the contractual conditions signed.
Below we schematically illustrate some evaluation criteria specific to the loan for medical expenses.
- Risk policies : each Institute applies its own risk policy in the evaluation of requests, based on the statistical data it possesses (credit scoring). These data constitute the tool that allows the Institute to keep insolvencies below a certain level.
- Income level : the acceptance of requests is normally also subject to the appraisal of the applicant’s level of income and the relationship between the latter and any repayment installment.
- Credit reliability : the creditworthiness of the applicant is of great importance. It is important to stress that this assessment has no “moral” meaning. The Institutes merely estimate the level of risk associated with each request, also on the basis of the indications transmitted by the Risk Centers. If the applicant’s credit history has some “flaws” (delays in repayments of previous loans, outstanding, etc.), the probability that the request will be accepted is obviously lower. In some of these cases, a valid alternative is constituted by the Transfer of the fifth: this solution, by offering the appropriate guarantees to the lender, allows to adopt more flexible evaluation criteria.
Medical expense loans are provided by financial institutions and banks. They do not require specific requirements, except a certain income and a credit position of the loan applicant which confirms an adequate financial reliability of the same.