Healthcare costs in India are rising at 14% annually , making medical emergencies financially overwhelming for many families.

If savings and health insurance fall short, an LAP or a Loan Against Property for medical emergencies can offer much-needed support. By pledging your residential or commercial property, you can access a substantial loan amount (subject to eligibility) with flexible repayment tenures – helping you manage urgent medical expenses without added financial strain.

This article explains how an LAP can help cover medical expenses, its key benefits, and the common documentation required – so you're better prepared when it matters most.

How to Use a Loan Against Property for Medical Emergencies

Here’s how an LAP can support you during medical emergencies:

• Diagnostic Tests: Advanced tests like MRI scans, CT scans, and blood panels can be expensive. LAP funds help cover these costs, ensuring timely diagnosis and treatment.
• Hospitalisation Costs: Expenses such as room charges, doctor consultations, ICU fees, and medical procedures can add up quickly. An LAP ensures you receive uninterrupted care without financial stress.
  
• Elective Treatments: Certain procedures or treatments may not be covered by insurance. An LAP allows you to finance these treatments when required.
  
• Post-Surgery Recovery: Treatments such as physiotherapy, home nursing, and rehabilitation are essential after major surgeries. An LAP helps manage these costs to ensure a smooth recovery.

Why Are LAPs Beneficial for Medical Expenses?

Here are key reasons a Loan Against Property can be beneficial for managing urgent medical expenses:

• Substantial Loan Amounts: Lenders typically offer loan amounts of up to 75%* of the property’s market value, providing crucial financial support for high-cost treatments and hospitalisation.
  
• Longer Repayment Tenures: LAPs usually come with repayment tenures of up to 15-20 years, allowing borrowers to repay in manageable instalments over time.
  
• Competitive Interest Rates: Being backed by collateral, LAPs generally come with lower interest rates than unsecured loan products.
  
• No Usage Restrictions: LAP funds can be used for a wide range of medical expenses, including diagnostic tests, surgeries, hospitalisation, and post-treatment care.

What Documents Are Required to Apply for a Loan Against Property?

The documentation for a Loan Against Property (LAP) can vary based on the lender’s policies and the applicant’s profile. However, the most common requirements include the following:

• Identity Proof: Any government-issued ID such as an Aadhaar card, passport, voter ID, or driving licence.
• Address Proof: Documents like ration card, Aadhaar card, or latest electricity bill.
• Income Proof: Documents such as salary slips for the past 3 months and Form 16 for the past 2 years for the salaried; CA-audited financials and last 2 years ITR with income computation for the self-employed.
• Bank statements for the past 6 months.
• Documents pertaining to the property to be pledged.

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Ensuring these documents are in order can help speed up the LAP approval process.

Conclusion

A Loan Against Property (LAP) can be a valuable financial tool for managing medical emergencies, helping you access timely treatment without straining your savings.

If you’re facing urgent expenses, SMFG Grihashakti offers Loans Against Property with a hassle-free online application process, competitive interest rates, and flexible repayment tenures. Our LAP eligibility calculator will help you estimate the maximum loan amount you may be able to borrow. Apply online today or contact us for more information.