Introduction
Medical emergencies or planned procedures are often expensive, and many end up looking into medical loans to cover these costs. Proper documentation not only allows the lenders to expeditiously assess eligibility, but it also encourages transparency and allows the lender to reduce potential delays when approving the loan. For more information click on good at money lender Toa Payoh. B This article provides a general overview of important documents that a borrower should prepare before applying for a medical loan.
Proof of Identity
The first and most essential set of documents will be proof of identity. Licensed money lenders and banks will want to make sure the applicant is indeed who they say they are, like a passport, an employment pass, etc. If you have proof of identity, make sure the documentation is up-to-date and that it is legible; this can prevent delays during the approval process.
Proof of Residence
Proof of residence will allow the lender to verify that the applicant can contact them and also needs to meet regulatory requirements. Some of the common documents or proof of residence are utility bills, tenancy agreements, rental agreements, etc. It is important to have a matching home address to these documents to avoid discrepancies.
Existing debt verification
If the borrower has other loans in progress, lenders may ask for proof of these loans to assess the applicant’s overall ability to repay debt. Certain documents are needed, like Loan statements or repayment agreements provided by the bank or money lenders, and Credit card statements listing the outstanding balance.
Medical Documentation
Since the loan will be used for a medical purpose, the lender will often require medical documentation in support of determining the purpose of the loan, and help with determining the amount needed for the loan. Certain documents are required, like a doctor’s written prescription or referral letter, medical lab reports, etc. Having medical documentation ready helps lenders determine the exact financial need, as well as assist in determining the approval amount or how much will be needed for repayment.
Income Verification
Lenders need to be able to determine if the applicant can repay the loan. Certain documents are required, like recent paystubs, statement of contributions to the Central Provident Fund (CPF), history of deposit into bank statements showing salary, A letter of employment verifying status, and monthly salary
Conclusion
If an individual has the appropriate documents prepared, the medical loan application process can be simple. The documents needed generally include proof of identity, proof of income, proof of residence, medical documentation, and documentation regarding your current debt situation. By having each of these documents organized and clear, you will achieve a quicker process and improve your chances of getting approved.