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Mint
15 hours ago
- Business
- Mint
Need help with sudden medical expenses? A personal loan may be the answer
Unanticipated medical emergencies provide no time for financial indecision. With healthcare costs in India rapidly rising, a personal loan (for an emergency) can be a lifesaver. These loans ensure that your concerns are only about getting well, whether for an unexpected surgery, an unforeseen accident, or a long course of treatment. Because a personal loan is an unsecured credit product, it is ideal for emergencies where time and flexibility are essential. Instant payment in a day or two. No restrictions on the type of treatment based on end-use. Available to self-employed and salaried individuals. In most cases, online paperwork and doorstep approval are available. Yes, no collateral is needed for personal loans for medical emergencies. As an unsecured loan, the following is considered when the lender evaluates the applicant: Income profile. Credit score. Employment status. Relationship with the lender. This type of loan allows quick access to money since you do not need to pledge gold, real estate, or other valuables, making it ideal for time-sensitive medical emergencies. Anand K Rathi, co-founder of MIRA Money, explains why opting for a personal loan during a medical emergency is a good choice. He says, "Taking a personal loan for a medical emergency can be a prudent choice, especially when you're confident the insurer will reimburse the expense soon. Liquidating investments like mutual funds or debt funds for a short-term requirement can trigger taxes and may result in missed market opportunities.' 'A short-term loan, ideally backed by a lien on existing investments, helps bridge that gap without disrupting your portfolio. However, if there's any uncertainty around insurance reimbursement, it's wiser to sell your holdings than bear the cost of a loan,' he added. Banks Interest rates HDFC Bank 10.9% - 24% Axis Bank 10.49% - 22% Kotak Mahindra Bank 10.99% - 16.9% IDFC First Bank 10.7% - 23.99% ICICI Bank 10.85% - 16.65% Yes Bank 11.25% - 21% IndusInd Bank 10.49% - 26% Federal Bank 12% - 22.5% Note: Readers are advised to check the relevant bank's website for the latest updates as interest rates, fees & charges are subjected to change. Citizens of India who are 21 years old and under 60 years old. Working professionals on a monthly salary or self-employed individuals. Minimum income to comply with lender policy. Good credit history with a credit score of at least 700. Proof of address and identity (Aadhaar, PAN, and voter ID). Current pay slips or an ITR. Bank statement for 3 to 6 months. Medical reports or hospital estimates are optional but useful. Compare the offers of different banks. Be aware of the prepayment and foreclosure fees. Go through the fine print regarding processing fees and how the interest is calculated. In conclusion, in times of need, personal loans for medical emergencies are more than just a financial tool; they are your lifeline. Personal loans help close the gap between crisis and care by offering an unsecured loan, flexible repayment terms, and instant cash access. Disclaimer: Mint has a tie-up with fin-techs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
Economic Times
6 days ago
- Business
- Economic Times
HDB Financial's pre-IPO lottery backfires. Are unlisted stocks not worth the hype?
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel If IPOs are lotteries, then pre-IPOs were supposed to be the VIP ticket to easy money. But for HDB Financial Services investors, that golden ticket has turned into a cautionary tale and a costly one at Rs 740 price band for HDB's IPO is 40% lower than the Rs 1,225 levels it was fetching just days ago in the unlisted market. And for those who bought last year at Rs 1,550? They're staring at a gut-wrenching 52% erosion in value before the bell even rings on Dalal last year, pre-IPO investors got signed in Swiggy whose shares were changing hands at over Rs 500 in the unlisted market just a month before the IPO launched in November. Today, the stock is trading around Rs 400."I don't understand this fascination for pre-IPO stocks . You can't buy companies at any price just because they are getting listed," says Anand K Rathi, Co-founder of MIRA Money. 'Many smart investors who have better access to information are ready to unlock value by offloading shares even before the IPO hits the street.'Rathi, who has seen this game play out before, doesn't mince words: "The unlisted space is full of liquidity traps and opaque pricing. There's a post-listing lock-in of six months, and the prices at which retail investors enter are often obnoxious.'HDB shares, he pointed out, were available for around Rs 600 two years ago. 'But retail investors don't want to wait. They rush in right before the IPO, lured by the illusion of easy listing gains. Greed does the talking.'Ahead of the IPO, employee holdings were frozen, throttling supply and driving up prices in the unlisted market. But when the IPO price was announced, it knocked the wind out of speculative valuations.'In unlisted stocks , people like the charm and pomp factor. It's sexy to talk about owning a stock which isn't available on the exchange,' Rathi not all were left licking their wounds.'Several investors had entered HDB in the Rs 200–400 range five or six years ago. They're still sitting on healthy gains,' said Krishna Patwari, Founder & Managing Director of Wealth Wisdom India Pvt. Ltd. ( 'Retail investors often buy pre-IPO because the chances of IPO allotment are low and you only get a few shares. Pre-IPO gives you quantity, but comes with risks."And the biggest risk? Valuation. "If you're buying for the long term, unlisted stocks aren't a problem. But you must know what you're paying for. Valuations matter. And hype around an IPO can blind people," Patwari advises a long lens: ideally invest 4–5 years before the IPO, when companies signal listing intentions via annual reports, AGMs or employee communications. 'Once the IPO hype kicks in, it can be a 50:50 game.'He points out success stories like Tata Technologies, BSE, ICICI Prudential, Nazara and Barbeque Nation where investors have made handsome returns post Mutual Fund MD and CEO Radhika Gupta raised a red flag on the frenzy around unlisted stocks, calling it a case of mis-sold hype. "A perfectly good asset class which was meant for early stage investing for high risk takers is now marketed as the next sliced bread," she cautioned in a tweet on the issue.'Public, private, or in between, there is a reality of valuations and financial gravity,' she the IPO floodgates are open, remember that every unlisted stock isn't a hidden gem.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
