Medical loans can be used to cover expenses like surgeries, dental work, or fertility treatments when you don't have upfront funds.
Check if the lender offers pre-approval, so you can confirm your eligibility and rates before committing to a loan.
Look for loans with no early repayment fees, allowing you to pay off the loan faster and save on interest.
What is a medical loan?
Medical loans can help cover the cost of both essential and elective treatments including specialist appointments, hospital bills, medical equipment, travel expenses and recovery time. They're an option if your procedure isn't fully covered by private health insurance or if you need to pay an excess.
You have several financing options to consider:
Unsecured personal loans: Borrow $3,000 to $75,000 (depending on what you can afford to repay) at rates typically ranging from 7% to 20% p.a.
Specialised medical loans: Offered by providers like Pretty Penny Finance and MediPay, these loans cater specifically to medical procedures such as dental work or cosmetic surgery.
Short-term loans: For smaller amounts (from $100) with short repayment periods, though interest rates and fees are much, much higher.
Credit cards: Useful for flexible borrowing and interest-free periods if you can manage repayments responsibly.
Interest-free financing: Some clinics offer buy now, pay later platforms like Zip for medical expenses.
These loans often come with flexible repayment options and may have either fixed or variable interest rates, depending on your lender. If you're facing unexpected or high medical costs, a medical loan can help ease the financial burden.
How does medical finance work?
Medical finance works in the same way as any other form of personal finance.
You apply for a loan and, if approved, use the allocated funds to pay for medical expenses as well as living costs you might incur while taking time off of work.
Like any other form of personal loan, you get the money upfront and pay it back over time, along with any subsequent interest payments and fees.
Does the money come to me and I get to pay for things? Or does it go straight to my doctor?
If you opt for a payment plan from your clinic, the money will go straight to your doctor. However, if you opt for a personal loan to cover your medical costs, the money will usually be transferred directly to your bank account, whereby you can use it to pay for the medical bills yourself.
Finder survey: What do Australians typically use personal loans for?
Response
Vehicle purchase or repairs
40.28%
Debt consolidation
34.72%
Home improvement
23.61%
Holiday(s)
16.67%
Other
13.89%
Moving costs
12.5%
Medical expenses
10.42%
Education expenses
8.33%
Business expenses
4.17%
Special events or celebrations
4.17%
Wedding expenses
3.47%
Legal expenses
1.39%
Source: Finder survey by Pure Profile of 1016 Australians, December 2023
What can a medical loan be used for?
You can use a medical loan to cover any of the expenses associated with your medical treatment, such as the following:
Medical or cosmetic surgeries. This includes any optional or elective surgeries as well as any procedures performed at a private clinic or hospital.
Specialist or doctor appointments. If you need to regularly visit a specialist, you can get a medical loan to cover the cost of these appointments, regardless of whether they are covered by Medicare or your insurance.
Medical treatments or medicine. You can also use a medical loan to purchase specific drugs, treatments or medicines.
Hospital expenses. It can be expensive to stay in hospital, but you can use a medical loan to cover any of the costs that you incur as part of your stay. This could also include any specialised procedures you receive while in hospital, such as X-rays or MRIs.
Personal medical equipment. If you require certain medical devices or equipment to help your recovery or to treat an ongoing medical issue, you can use a loan to cover the purchase costs.
Travel expenses. If you need to travel to get medical treatment, the cost of travel and accommodation can also be covered by a loan.
You can use most personal loans for any worthwhile purpose, and this includes any medical treatments or their related costs. If you're unsure whether a particular cost can be covered by a medical loan, it may be worth contacting the lender directly.
Why you might need a medical loan
Some procedures are not covered or are only partially covered by Medicare and/or private health insurance policies. While health policies vary greatly, some procedures that are excluded from cover or have restricted cover typically include the following:
Plastic and reconstructive surgery (e.g. skin grafts following burns, skin flap repair and breast reconstructions following cancer)
Cardiac and cardiac-related services (heart investigations and surgery)
Medical loans have many of the same features as other personal loans, so it's a good idea to consider all of these before applying. These include the following:
Fees. Check for fees like establishment, monthly, early repayment or redraw fees. These can vary between lenders.
Interest rate. Look at both the advertised rate and the comparison rate, which includes fees, to understand the true cost.
Repayments. Compare repayment options (weekly, fortnightly, or monthly) and see if extra repayments are allowed to save you money.
Loan amount. Ensure the loan minimum fits your needs, as some medical loans start at $10,000 or higher.
Loan terms.Check if the loan term suits your budget, especially since medical loans often come with longer repayment periods.
Restrictions. Make sure the loan is flexible, allowing funds for related expenses like recovery time, not just medical bills.
You can use a medical loan to cover pretty much any type of medical procedure. For more details on specific types of medical procedure loans, check out the below guides:
Money for the treatment you need, when you need it. A medical loan ensures you can access the care you need right away, with the flexibility to manage payments over time.
Funds for your recovery. If you are forced to take unpaid leave for your recovery period, a loan will cover you for the essentials while you heal.
Slow loan approval process. If you need an urgent procedure, the loan process may not be finished in time for when you require the funds. This could force you to put funds onto a more expensive credit card, rather than apply for a loan.
High interest/fees. Depending on the form of finance that you opt for and your credit rating, you may find yourself paying more than you bargained for.
Frequently asked questions about medical loans
The cost of a medical loan will depend entirely on the types of loan you go for, the lender in question, your financial situation and the amount of funding you require.
If you opt for a personal loan to cover your medical costs, you can get an estimate of your repayments with a personal loan calculator.
If you opt for a payment plan with your clinic, the price will depend on the interest rates and fees charged by your clinic.
Having a poor credit history can negatively impact your chances of getting a loan, but it certainly doesn't make it impossible. If you have bad credit and you need to pay for medical bills that you otherwise cannot afford, there are a number of medical loans for bad credit that might be able to help:
Short term loans. If you have a bad credit history, you can usually still qualify for a short term loan. These loans are generally available up to $2,000, though you can find lenders that offer $5,000 or even $10,000 short term loans. Please be aware, however, that these loans have high fees and interest rates, and should be considered as a last resort.
Risk-based loan. Risk-based loans are also a viable option if you have previous defaults on your credit history. However, like short term loans, you may find that you only qualify for a lower amount or a shorter term, or that you are charged more than borrowers with good credit scores would be.
Secured loan. If you have bad credit but you offer an asset such as real estate, a vehicle or even valuable art/jewellery as security for a personal loan, you could potentially lower your rate and increase your chances of being approved.
Get a guarantor. If you have a friend or family member who is willing to be a guarantor for you, a guarantor personal loan could be an option. If you default on your loan repayments, a guarantor becomes responsible for the loan, meaning that less risk is posed to the lender.
It is still entirely possible to get a medical loan if you're self-employed. However, providers may look at your finances more closely. This may mean that your application takes slightly longer than average.
Some of the additional documentation that you may be required to provide if you are self-employed can include the following:
Company-specific information. If you own your own business, be prepared to provide information such as your company's ABN, address, etc.
Tax returns. Be prepared to show the last two years of your full personal and/or company tax returns. These will help prove any income you declare on your application.
Financial statements. These may include any profit/loss statements to also support the income that you declare.
Proof of rental income. If you have any income from rental properties, you can declare this with real estate statements or copies of your executed lease agreements.
Notice of Assessment. Make sure you have on hand your latest Notice of Assessment (NOA). Depending on the lender, you may need to provide your NOAs from the last two years.
Recent bank statements. This includes statements showing your savings and business transactions. It may also include statements showing any other outstanding loans or credit cards you have with other lenders.
Whether you opt for in-house financing from your clinic will depend on the type of finance that your clinic offers. Many clinics will offer an interest-free period on their treatment loans, usually somewhere between 6 and 12 months. After this initial period, however, a high interest rate is usually charged.
If you want longer to repay, or if you want the confidence that your medical repayments will not dramatically increase after the introductory period, a personal loan might be a better option for paying for your treatment.
If you're looking for an option that doesn't break the bank, interest-free finance could help. There are two main forms of interest-free medical finance:
Buy now pay later platforms
Many clinics now accept payments from interest-free finance providers, such as a MediPlan from Zip Money. These providers could give you up to 24 months to pay off your medical bills, interest-free.
Providers such as Zip can be used to pay for treatments, including medical, cosmetic, vision, dental, veterinarian and more.
Short/medium loan terms. Providers like Zip give you up to two years to repay your debt, so ensure that you are able to meet the repayments within this time frame.
Pays for treatments only. Interest-free finance providers pay for your treatment directly to the clinic, with no money paid to you. So, if you think you will require extra funds for your recovery time, you may still want to consider a loan.
Limited clinic options. Not every clinic will accept this option.
Fees. Fees may apply.
No interest loans scheme (NILS)
If you're a low-income earner, you may be able to qualify for an interest-free loan from NILS. These loans have terms of 12-18 months and have no fees or charges.
However, applicants must meet the following criteria:
Have a Health Care Card or Pension Card
Earn less than $45,000 per year after tax ($60,000 for couples or people with dependants)
Have lived at their current or previous address for at least three months
Show a willingness and the capacity to repay the loan
The amount of time it takes to be approved for a medical loan will depend on the lender and the type of loan you go for. Some loans might take a few days to qualify for, while some may take a few weeks. That being said, many lenders do offer next-day or same-day approval on medical/personal loans.
If you’d like to apply for a personal loan to finance your medical expenses, you can compare your options using the comparison table below. If you find a suitable loan, you can then click the "Go to site" button to be taken to the lender's website to start your loan application. To apply, you’ll need to meet the following criteria:
Aged 18 or over
Be an Australian citizen or permanent resident
Be employed or receiving regular payments into your bank account
Rebecca Pike is Finder’s money editor, with over 7 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise and 7News, Today and 9News, as well as Sky News, Channel 10 and across radio and print. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines.
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I’m so sorry to hear about your diagnosis. It might be worth reaching out to support services for some help with your situation and accessing medical care, such as the Cancer Council.
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I have cancer and need Doctors and medical help.
Hi Helen,
I’m so sorry to hear about your diagnosis. It might be worth reaching out to support services for some help with your situation and accessing medical care, such as the Cancer Council.
You may also want to talk to your local Medicare office about the ‘safety net’ on costs of medications and medical bills.
Hope this helps!