How much should you put aside as your Emergency Fund?

If the year 2020 has taught us anything, it is that medical emergencies are unpredictable and can affect more than just your health; they can turn your life upside down. Take the COVID-19 pandemic, for instance, which brought almost the entire world to a halt. The combination of it being a highly infectious virus and one without a vaccine means that there is a very high risk of contracting it.

While some people could be immune to the virus, those whom it does affect could end up facing various costs for quarantine, hospitalisation, treatment, medicines, and aftercare amidst medical inflation. And if you don’t have the financial support to deal with such a medical emergency, it could derail your life’s savings. Having a medical emergency fund, could ease this blow. But how much should you put aside as a medical emergency fund? The answer to that is subjective and depends on various factors, which we shall consider below.


A person’s income is the major factor in deciding the amount to be saved as an emergency fund. What is an appropriate amount for you, may not be so for someone else.

People in stable jobs are recommended to put away 3-6 months’ salary into their emergency fund, whereas people with lower job security are recommended to save 6-12 months’ salary.

A stable income ensures a consistent and bigger emergency fund. The number of earning members in the family also matters. If there are two people earning, it is easier to accumulate a bigger fund as compared to a single person’s efforts.


Medical insurance also goes a long way in fixing an emergency amount. It ensures cashless transactions in case of hospitalisation. However, for availing of facilities such as therapies, tests, medicines, doctor’s visits etc. one requires a minimal amount of savings. People with medical insurance must save about 3-4 months’ salary as they already have the insurance backup.


Though it is important to save for medical emergencies, paying off present debts should always be the priority. So, people with higher debt, EMIs, insurance premiums etc. have no alternative but to save the bare minimum for their emergency fund. Often even this may be difficult.

If you are in high debt and have a low-to-nil emergency fund, what do you do if a medical emergency crops up unexpectedly? Well, there’s no need to lose heart. A viable solution is to avail of a Personal Loan from a trusted bank.

For instance, HDFC Bank is one of the leading providers of Personal Loan in India. Existing customers can avail of a Personal Loan in less than 10 seconds, which is a relief for those facing a medical emergency. Other applicants can get a Personal Loan in about four hours.

Unmatched features such as flexible tenures, competitive interest rates, pocket-friendly repayments at Rs 2,162 per lac, and speedy disbursal make a Personal Loan from HDFC Bank a lifesaver in case of medical emergencies.

Now, lack of funds need not come in the way of the best medical treatment!

Faced with a medical emergency? Read more on how to be prepared for one!

Looking to apply for an HDFC Bank Personal Loan? Click here to apply now!