Archive · 25 Jan 2026
Medical Emergencies Drive Urban Personal Loans
A report by Paisabazaar found that many people in cities take personal loans to pay for medical emergencies.
About 11% of borrowers in India use loans for healthcare, with higher percentages in bigger cities.
This shows that not enough people have health insurance and medical costs are going up.
The report also looked at other reasons for loans, like daily expenses and home repairs.
They talked to almost 2,900 people in different cities to understand why people borrow money.
11% of personal loans in India are for medical emergencies, rising to 14% in Tier 1 cities.
Low health insurance penetration and rising medical costs are key factors.
Other common reasons for loans include daily expenses, home repairs, and weddings.
The report is based on interviews with 2,889 borrowers across 23 cities and towns.
The data highlights regional and age-based differences in borrowing patterns.
- Who
- Urban residents in India
- What
- Taking personal loans for medical emergencies
- When
- Not specified
- Where
- India, across 23 cities and towns
- Why
- Low health insurance penetration and rising medical costs
- Primary Reason for Loans
- Medical emergencies
- Overall Percentage
- 11%
- Tier 1 Cities
- 14%
- Tier 2 Cities
- 10%
- Tier 3 Cities
- 8%
- Survey Sample Size
- 2,889 borrowers
- Locations Covered
- 23 cities and towns