Make An Informed Decision

Is Crowdfunding Better Than Medical/Personal Loans?

Published on February 29, 2024

Often when medical emergencies come along, we are swamped with very high medical expenses that include hospital stays, surgery costs, medicines, and other consumables which can push us into heavy financial debt.

That is why banks provide medical/personal loans which have an easier application process than other types of loans. These loans usually start from around 2 lakhs upto 15 lakhs.

However, there are several terms and conditions that banks enforce which can prevent someone from availing the funds. On top of this, these loans have a very high interest rates starting from 15% and upwards.

Medical inflation in India is at 14% twice as high as retail inflation.

Every year the costs of healthcare services, hospital costs, medicines, and treatment costs increase creating a burden on the people who need it the most.

Crowdfunding can be a viable option to those who do not have medical insurance or have expenses that go above and beyond the amount insurance companies can disburse.

What is crowdfunding?

Crowdfunding is an alternative way to raise money for medical, memorial, social, educational, and other relevant causes by requesting a large group of people to come and donate to your cause. Many platforms are offering this service.

Milaap is one such crowdfunding platform with over 10 years of crowdfunding experience.

Why do we need these?

With the rising costs of medical treatments in hospitals in India, the majority of the population has become forced to spend a disproportionatly high amount from their personal savings to cope with the financial burden. Oftentimes, their savings are not enough to meet these expenses.

With costs like these bearing heavily down on us. We have only a few options left with which we can afford to pay the high treatment costs.

We have written this short article to help you stay informed on whether crowdfunding or medical/personal loans works for you.

Crowdfunding Vs Medical/Personal Loans

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Drawbacks

As we can see, both crowdfunding and insurance have their pros and cons. If insurance isn’t working out, set-up a fundraiser on Milaap. It’s Free!

>> Learn how crowdfunding works

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FAQ:

Why should I use Milaap to raise funds?

The benefits of using Milaap are mentioned below:

There is 0% platform fees for running a fundraiser.
Accept donations from people around the world in multiple currencies.
Your will have a dedicated relationship manager as well as industry leading customer support team who will be there to guide you throughout your journey.
Milaap fundraisers accept donations in any payment method from UPI, to bank transfers, credit/debit cards, netbanking and the like. Your donors have multiple options to choose freely from.
Over 25% of our donors are people who have donated before on Milaap. This stands as a testament to the loyalty we have earned over the years.
Our tools help you share your fundraiser with your social contacts effortlessly to reach the widest audience. You can share via messaging, email, Whatsapp, Facebook, Twitter (X), or Linkedin.
You can monitor all your fundraisers from the Mobile App seamlessly and also withdraw funds, upload updates, thank donors and other options.

Can I trust Milaap?

When someone starts a fundraiser, our team contacts them for supporting documents to ensure the cause and the recipient is legitimate, and that funds raised are used appropriately.

Our Verifications team reviews the recipient to by collecting the KYC IDs - like Aadhaar, Pan, Driving License, etc. to ensure the funds reach the correct beneficiaries.

The funds will then be transferred to either the beneficiary or next-of-kin’s accounts or to a relevant entity such as the treating hospital, NGO, and vendors.

At Milaap, we diligently verify fundraisers and continually monitor them to ensure your donations are put to good use. While such cases are rare, if a fundraiser is found to be fraudulent, rest assured that Milaap will provide a full refund for your donation. If you ever have concerns about a fundraiser, please report the fundraiser immediately.

What information do I need to provide while setting up a fundraiser?

To set up a fundraiser, the organizer will have to provide the following information:

Organizer details - Email ID, phone number (preferably one that is available on WhatsApp), Name
Cause details - Goal amount, beneficiary details, fund utilization
Supporting documents - Upload supporting documents to prove that the need for funds is genuine. For example - Treatment Estimate letters, college admission letters, project details, etc will have to be uploaded once the fundraiser is live. Once the documents are uploaded, withdrawal of funds will be enabled on your fundraiser.

Is there any fees or interest Milaap earns on my money raised?

Milaap has ZERO platform fees and does not use the funds raised on the campaigns for any kind of interest.

How do I withdraw funds from my fundraiser?

Withdrawing funds from your fundraiser is a simple process. The following steps are to be performed to ensure a quick transfer of funds:

Adding the recipient’s bank account along with their KYC documents. Your account will be reviewed by our internal team withint 24-48 hours.
Clicking on 'Transfer Request' and submitting it for the amount required.

98% of the withdrawals are processed within 24 - 48 hours!

Does the money deposit into my account automatically?

No, you will have to add the bank account of the beneficiary, next-of-kin relative, recipient NGO, hospital's account for review. Review takes around 24 hrs and after approval you can request a withdrawal for the amount from your campaign's dashboard.

Are my transactions on Milaap secure?

Milaap uses industy leading 256-bit SSL encryption for all its transactions. This ensures all transactions made to and from your campaign are secured.

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