Medical Loan for Surgery/Treatment: 8 Ways to Arrange Money

The cost of medical treatments/operatives or surgery in India has risen drastically in last decade or so. Although India is considered to be the preferred destination for medical tourism and ranks in top 5 countries; the cost is still very high for an average Indian. This is because for a global tourist, the treatment cost (in dollars) they pay in their native country is high. Whereas, the same treatment cost is converted to Indian currency is very little for these tourists.

So how can a common man arrange money for expensive medical operations especially during emergency? Because arranging such a huge amount of money is very difficult.

Best option to arrange money is to take loan for medical treatment. Medical loan for surgery is basically a personal loan taken for treating health problems. In India, there are various options available to get medical loan for treatments.

Listed in the below table are the financial institutions or lenders who offer loan especially for medical operation:

Non-Banking LendersTrust / Charitable FundGovernment Funds/Schemes
Arogya FinanceNargis Dutt Memorial Trust (for cancer)Prime Minister National Relief Fund
MYA Health CreditYuvraj Singh Foundation (for cancer)Schemes under the Ministry of Health and Family welfare
Healthy Heart for AllThe Cancer Patient Aid Association
Bajaj FinservCancer Care Trust
hCueYoddhas (for Cancer)
First Hand Foundation (for Cancer)
Indian Cancer Society
Local NGOs
Narayana Multispeciality Hospital

1) Non-Banking Lenders:

Above listed non-banking lenders are medical loan providing companies operating on a core belief of providing quality healthcare for every India at affordable price. Apart from loan, they provide many other healthcare services.

How is the money paid to the borrower by non-banking lender?

Once you apply for the loan online and the application is approved, the money is directly paid to the hospital. All these financiers have direct contact with hospitals and doctors. Benefit of taking medical loan from such lenders are that there is no requirement to provide income documents or any form of collateral.

Other options to arrange money for medical treatment are:

2) Trust/Fund:

Above listed trust offer financial support especially to the poor people. There are many NGOs who get required support through local politicians. Narayana Multispeciality Hospital offers cheapest heart surgeries in the world.

Check out where to get low cost liver transplant in India.

3) Government Fund:

There are many government schemes such as Prime Minister National Relief Fund (PMNRF) and Schemes under the Ministry of Health and Family welfare which offer financial support to the individuals/families from the poor section of the society.

4) Personal loan from bank or finance companies:

You can also apply for a personal loan at private, public or co-operative banks and used the money for required medical treatment. However the problem with these financial institutions is that they offer loans only to select individuals depending on their evaluation criteria especially credit score.

Here’s the list of prominent banks or finance companies where can you apply for personal loan for medical treatment.

  • State Bank of India – Medi Plus Scheme
  • HDFC Bank
  • ICICI Bank
  • Bajaj Finserv – Has tie-ups with prominent medical centers and offers loan for various surgeries such as Bariatric, Laparoscopic, dental treatment, In Vitro Fertilization, eye care, stem cells and hair restoration.
  • Many other public, private or co-operative banks in India offer personal loan.

Typically this loan is unsecured, requiring no security by the bank. And no reasons for taking loan is required to be provided to the bank. However you can also get personal loan against LIC policy, equities, property, and fixed deposit which are nothing but loan with collateral.

5) Ask your friends/relatives:

This typically is the first option used to arrange money in the time of emergency. However not everyone has capacity to extend support due to personal obligations or kind of relation you have. Moreover many of the treatments required huge sum of money, which is actually not possible for a common man to arrange.

6) Peer to peer lending online marketplaces:

These are the online marketplaces where borrowers can apply for loan at multiple borrowers (mainly individuals). Interest rate can be bargained. P2PL have started gaining lot of popularity in the recent years due to less tedious application process, eligibility criteria and affordable rates compared to banks. Read more in detail about peer lending companies in India.

7) Health Insurance:

This is no doubt the must have component in every individuals financial planning kitty. Although it’s not an investment; but still it saves money. When the insured person is hospitalized, the treatment cost is bourne by the insurer. There are many medical insurance providers in India such as ICICI Lombard, Bajaj Allianz, Bharti AXA and others. The biggest problem with health insurance is that claim applications are not honored in many cases, due to the strict underwriting rules especially when the claim is made against pre-existing diseases. And claim made, within months of buying the policy are rejected due to the waiting period in many cases.

8) Private money lenders:

This should be the last option an individual should use. Because the interest rates are highest compared to banks/other financial entities or P2PL and others. And the recovery process is very substandard in many cases.

Cost of surgeries and treatments in India:

Following surgical procedures or treatments cost very high in India. And listed in the below table are the average price patient has to pay. The cost varies depending on the city and hospital and other procedures involved in the treatment:

Surgery/Operative/Treatment ProcedureEstimated Cost in Rs. (average)
In-Vitro Fertilization1,50,000 per cycle (1.5 Lakh)
Angioplasty2,00,000 - 3,00,000 (2-3 Lakh)
Chemotherapy30,000 – 40,000
Angiography25,000 – 40,000
Kidney TransplantOver 10,00,000 (10 Lakh)
Liver transplant Over 25,00,000 (25 Lakh)
Open heart surgeryOver 4, 00,000 (4 Lakh)
Bariatric surgery Between 3, 00,000 – 4, 00,000 (3-4 Lakh)

Medical loan can be used for any purpose such as surgeries, therapies, day care procedures and many other health treatments. Please check with above listed financing companies on eligibility criteria.

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