Settlement Loan: Features and Conditions for Obtaining

Qualitative medical services today are quite expensive. When faced with serious health problems, for example, when an urgent surgery is necessary or if a long course of treatment should be started, the question immediately arises as to where to get the money for treatment. One of the fastest and most convenient ways to resolve a monetary problem is to apply for a settlement loan.

Reputable financial organizations conclude contracts with certain private clinics. Thus, a client of the clinic, when faced with a shortage of money for treatment, is immediately offered to make use of a settlement loan and thus get the needed treatment.

What is a settlement loan?

This type of loan can be obtained by the borrower for his or her own treatment or for the treatment of their relatives and loved ones. The loan can be taken out for a surgery, for sanatorium treatment, for conducting laboratory tests, for cancer treatment, for dental treatment, etc. It should be noted that cosmetic surgery is one of the medical services, and therefore one can take a loan out for liposuction, rhinoplasty and other similar treatment services.

Conditions for obtaining a settlement loan

A settlement loan is not much different from other types of loans. To receive such a loan, a client will need to collect a certain set of documents. Usually, you will need to provide your ID and some income statement but it all depends on the bank the clinic cooperates with.

In most cases, the settlement loan application takes several hours to process, but sometimes this procedure can be delayed for several days. If the borrower is to undertake a serious surgery, the bank may require a surety who will pay off the loan in the event of an unsuccessful surgery. Settlement loan borrowers will have to get compulsory insurance for their own lives as well.

The advantage of this type of settlement financing is a relatively small interest rate. On average in Canada, the annual interest rate is about 16-20%.

You can choose the optimal amount loaned yourself and the terms of the settlement. In addition, it is also possible to get a preliminary estimate of tariffs and monthly payments almost instantly. To do this, you can use an online loan calculator on Canadian banks’ websites to find an option that will not be too burdensome for your family finances. Please note that such a calculator only gives preliminary figures, and the final tariffs are presented only after the loan application has been considered by the bank.

This type of lending has its drawbacks, the main one of which is the need to provide the bank with a bank account information of the clinic itself but not your personal one. In this case, the bank learns about the upcoming surgeries, and in the case of serious treatment, for example, if a complicated surgical operation is required, they can simply not approve the application for a loan.