My father is 65 and does not have any health insurance. He has been advised surgery costing Rs 7 lakh, for which I am planning to take a loan, as I do not have such sums as savings. What kind of loan do you suggest?
Manish Goel, Ghaziabad
It is unfortunate that your father needs to be operated for which you do not have adequate money on you. The importance of insurance is realised more often when one does have one. The lesson for you is to take health insurance for yourself, if you do not have one already. You could also include your parents in such a policy, depending on their health condition and how the insurer treats the case.
For a loan of such value, explore a personal loan from your bank or through your credit card. Personal loans are expensive as the interest charged on such loans could be between 12 – 20 per cent. Moreover, the lender may or may not lend you the sum you are looking at, as you will be extended the loan based on your eligibility criteria set by them. The lender also sets the repayment time frame, which you need to then follow to pay the loan off. If you do not succeed in getting a loan, consider liquidating your investments if needed or consider borrowing from relatives and friends, where the borrowing terms may be flexible compared to a personal loan from a bank.
