Payday Loans for medical expenses: all you need to know

In the wide range of financial products on the credit market, there is also a payday loan for medical expenses , a liquidity request that often proves essential for dealing with the delicate health issues that may involve a family. This type of payday loan is provided from financial institutions and banks, as per practice, and are not required specific requirements except for a certain income and a credit position of the applicant confirming its reliability, without therefore being part of the protesters and bad payers. Here is everything you need to know about payday loans for medical expenses , the methods of disbursement, characteristics of the payday loan and the evaluation criteria applied by the credit institution before granting the requested amount.

Characteristics of the payday loan

payday loans for medical expenses include numerous types of clinical intervention, from the most urgent to simple aesthetic treatments. In general we can summarize them in these 5 categories :

  • Surgical interventions
  • Rehabilitative and physiotherapeutic treatments
  • Dental-dental care
  • Expenses for nursing homes, assistance to patients and non-self-sufficient people
  • Beauty treatments and cosmetic surgery

To obtain funding you can follow two paths: the first provides the aid of the finalized payday loan , that is directly addressed to the clinics where the treatments are carried out, in order to obtain quickly the amount necessary to the preferred repayment conditions, and the sum paid is immediately recognized to the clinic itself. There is also a second option that provides for a simple liquidity payday loan , which has the not inconsiderable advantage for the user to request an additional amount of money compared to medical expenses, so that they can possibly face any unexpected costs, which are not payable with the finalized payday loan.

Evaluation criteria

In order to be able to provide the payday loan, a credit institution takes into account three evaluation criteria , namely:

  • Income level
  • Credit reliability
  • Risk policies

If there is little doubt about the first two items, which allow the lender to assess, on one hand, the level of income of the applicant and the relationship between the latter and any repayment installments, and on the other to estimate the reliability of the customer based on its previous, so if in the past these has repeatedly delayed the repayment of payments or has been insolvent will have less chance of obtaining funding, a few words more deserves the item “risk policies”. What is it? It means that each bank and financing company applies its own risk policy in the evaluation of requests, which is based on the statistical data in its possession, and which is technically called credit scoring . On the basis of these data, credit institutions can maintain defaults below a certain level, and this instrument may prove essential in the choice to provide a payday loan for medical expenses.

Payday loan contract: the constituent elements

The constituent elements that are highlighted at the time of signing the payday loan contract for medical expenses are:

  • Interest rate applied
  • Amount and method of financing
  • Number, amounts and deadlines of the individual installments
  • TAEG, annual percentage rate
  • Any financial charges excluded from the calculation of the APR
  • Any guarantees requested
  • Any extra insurance coverage

Early extinction

Also in a payday loan for medical expenses there is the possibility of early repayment of the payday loan guaranteed by law to every consumer. Should the beneficiary wish to make use of this option, he / she could pay a penalty in addition to the repayment of the residual capital, which in any case must not exceed 1 per cent of the capital financed on the basis of the provisions of the regulations. The exact terms of the penalty must also be reported in the contractual conditions signed by the beneficiary when the payday loan agreement is signed.

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