What is a dental loan? Explanation of screening and advantages and disadvantages!
What is a Dental Loan?
You may have had the experience of wishing you could split the cost of an expensive treatment at the dentist. Dental loans are convenient for such situations.Dental loans are installment payments that can be used exclusively for dental treatment. This column discusses the advantages, disadvantages, screening and interest rates of dental loans.
Advantages of Dental Loans
The advantage of a dental loan is that you can pay for expensive treatment in installments within a reasonable range. While some dental treatments can be covered by health insurance, there are some uninsured treatments that require expensive fees. In such cases, dental loans are reassuring.
Unlike regular credit card loans, dental loans are specialized for dental careIt is. As a result, they tend to have lower interest rates than typical loans. Uninsured dental care is,Orthodontics, implants, ceramic fillings and coverings, denturesThe list is wide-ranging, including the following The number one advantage of a dental loan is that you can take out a loan for these expensive medical procedures at a low interest rate according to your income and your ability to pay.
〈Summary of advantages of Dental Loan.
・Payments can be made in installments for expensive dental treatment.
Pay at your own pace
・Often lower interest rates than regular loans (no interest in some clinics)
Housewives with regular income are more likely to be able to get a loan.
Application can be made at the dentist's office or on the web.
Disadvantages of Dental Loans
The number one disadvantage of dental loans is,Not all dental offices carry it.This means. Although most clinics that provide expensive, uninsured treatments generally have them in place, it is a good idea to check for dental loans as well when planning your treatment.
[Dramaworld] Summary of Disadvantages of Dental Loans.
Some dental clinics have not introduced the system.
・If you don't have a regular income, it's hard to get a loan.
There are cases where you may fail the screening process.
Interest rate fees are charged according to terms and conditions.
Screening for Dental Loans
Dental loans are generally reviewed forTwo types of loans: bank loans and consumer credit company loansThere are two types of loans. In both cases, loan approval or denial is based on inquiries about annual income, regular income, the existence and balance of loans from other companies, and previous financial incidents. If you do not have a regular income or have loans from other companies, your application will likely be denied. However, home loans and car loans are more likely to be approved even if there is an outstanding loan balance. In any case, there is no doubt that the borrower's ability to make payments on the loan without delay will have an impact on its approval or disapproval.
Dental Loan Review Summary
[Claire] Cases where there is a high probability of being able to borrow.
Have a regular income.
No loans to other companies
[Cases with a high probability of loan denial].
No regular income
Other companies are owed money by other companies
There are delinquent repayments of loans.
Financial accidents in the past.
Difference between dental loans and in-office installments
When installment payments are made by the dental office,Two main types: dental loans and in-office installmentsThe major difference between the two is who is the installment payment agent. For dental loans, banks and consumer credit companies serve as the contact point, and upon approval, these institutions will advance payment for the treatment. The loan is then repaid to the loan company. On the other hand, in the case of in-office installment loans, the contact point is the dental clinic, since the clinic sets its own installment payments. Therefore, repayment is also made within the dental office.
Also,There is a difference between dental loans and hospital installments with respect to medical expense deductions.There is a Dental loans are deductible for the full amount of the year in which the contract is signed, even if payments are still being made. On the other hand, an in-office installment is deductible only for the portion of the payment that is completed within the year. Therefore, if the payment period is long, the deduction is spread over several years. In both cases, interest and fees are not deductible, but up to 2 million yen can be deducted.
[Summary of differences between dental loans and in-office installments
Dental Loan
Banks and consumer credit companies for both borrowing and repayment
The entire contract amount is deductible as medical expenses for the year.
...a large tax credit refundable at one time.
Interest is often charged for a large number of times.
[In-hospital division
Both borrowing and repayment are in the dental office
Only the portion of payment completed within the year is deductible as a medical expense deduction.
Medical expense tax credit refund split
Some clinics may not have interest
Comparison of interest rates for dental loans from different banks
Dental loans are unique in that they often offer lower interest rates than regular credit card loans. A comparison of interest rates between major dental loans and credit card loans includes the following
Suruga Bank Dental Loan
Interest rate 2.5-5.01 TP3T
Type...Dental Loan
Maximum loan amount...8 million yen
Maximum borrowing period 120 times or less
The Senshu Ikeda Bank Dental Loan
Interest rate...2.875-4.375%
Maximum loan amount...10 million yen
Maximum loan period ... 15 years
Dental Loan
Interest rate...3.8-8.81 TP3T
Type...Dental Loan
Maximum loan amount...7 million yen
Maximum loan period ... 8 years
Tsukuba Dental Loan, Tsukuba Bank, Ltd.
Interest rate...5.0%
Type...Dental Loan
Maximum loan amount...5 million yen
Maximum loan period ... 10 years
Chiba Bank Dental Loan
Interest rate...5.0-5.41 TP3T
Type...Dental Loan
Maximum loan amount...5 million yen
Maximum loan period ... 10 years
Shinsei Bank Group A+ Dental Loan
Interest rate...3.9-5.81 TP3T
Type...Dental Loan
Maximum loan amount...3 million yen
Maximum loan period ... 120 times
[General loan
Mitsubishi UFJ Bank BANCIC Loan
Interest rate...1.8-14.61 TP3T
Type...Bank card loans
Maximum loan amount...5 million yen
Maximum loan term...varies depending on the loan amount
[Claire] Promise.
Interest rate...4.5-17.81 TP3T
Type...Card loan
Maximum loan amount...5 million yen
Maximum loan term...varies depending on the loan amount
One of the reasons why dental loans have low interest rates is that they do not allow for additional borrowing as easily as regular loans. If a borrower wishes to take out an additional loan, the loan approval process can be complicated and may result in denial.Dental loans are structured to allow for lower interest rates because the loans are limited to repayment specifically for dental care.
For general card loans, there is no set maximum repayment period because additional borrowing is possible. This makes it easy to borrow, so care should be taken not to overdraw.
Bank dental loans are often part of the multi-purpose loan category. Each bank offers different interest rates, limits, and loan terms. When planning for treatment, carefully compare and select a loan that you can repay.
Also,Many clinics waive the interest fees that patients pay up to a certain number of times, so please ask the clinic where you wish to receive treatment for details.
Procedures for transferring to a different hospital
[Joon] Can I transfer to a different hospital after taking out a dental loan in the first place?
Basically,Dental loans are not reimbursable.Therefore, it is possible to transfer to a different hospital, but be aware that you will likely have to start paying for the treatment all over again. When you are going to undergo high-cost treatment, it is very important to make a thorough preliminary study at the start and determine whether the treatment is sustainable.
Refunds for mid-course transfers are basically made between the clinic and the patient, and in principle, the loan cannot be stopped.
[Joon] How will I pay for my treatment?
In the unlikely event that a patient wishes to transfer to a new hospital after beginning treatment, he or she may have to redo all of the testing and treatment planning from the initial stages at the new hospital. Therefore,Unless the new clinic is a branch of the former clinic or is almost finished and addressed to a doctor you know, you have to come up with the cost of treatment again.Therefore, it is important to plan well in advance before starting treatment.
Please also refer to this page when transferring to another hospital.
Is there a bailout plan?
However, if the treatment was at a very early stage or if the treatment is split within the hospital, the dentist may kindly transfer the patient without significant cost burden.If you must transfer to a new clinic, do not quit your visit without telling the dentist.You should try to do so.
[Joon] What's important when using a dental loan?
In any case, transferring after starting expensive treatment can be very costly not only to the dentist, but also to the patient himself/herself. Communicate with your dentist and dental hygienist, and consider various dental loans to help you complete your treatment and loans.
summary
The first feature of dental loans is that they offer lower interest rates than regular loans.
On the other hand, the reality is that once a loan is made, it is difficult to reimburse the loan and additional financing is complicated. To take full advantage of the benefits of dental loans, preliminary research and a reasonable treatment plan are essential. Please refer to this column and consider the dental loan that is right for you.
Graduated from Nagasaki University School of Dentistry, ~2018 Kyushu Medical Center, 2018-present Working at a dental clinic in Tokyo
After completing clinical training, worked in cosmetic dentistry in Tokyo. Currently a dentist and dental writer.
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