Medical Loans

Medical expenses can put a big strain on your finances. Some procedures can set you back tens of thousands of dollars, not to mention the cost of staying in the hospital and taking time off work.

A medical loan can help you cover bills from doctors, hospitals or anything else medical related. See how they work and compare your options below.

What is a medical loan?

A medical loan can cover the costs of both elective and necessary medical treatments and procedures. Covering medical costs can be expensive, and even with private health insurance, you may have to pay an excess, or worse, your procedure might not be covered at all. If you don’t have the money, you can take out one of these loans to cover your medical costs.

As with a regular personal loan, a medical loan from a lender such as ACA Loans or MacCredit may be offered with either a fixed or variable interest rate as well as flexible repayment options.

How does medical finance work?

Medical finance works in the same way as any other form of personal finance. Borrowers apply for a loan and, if approved, use the allocated funds to pay for medical expenses, as well as living costs that 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.

What can a medical loan cover?

You can use a medical loan to cover any of the expenses associated with your medical treatment, such as:

• 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.

Bessie Hassan, money expert at Finder

"For some Aussies, a line of credit is the only way they can afford their medical expenses. While it might seem easier to just whack it on the plastic, a personal loan can sometimes be the more affordable option, depending on your circumstances."

How should I compare my medical loan options?

Medical loans offer many of the same features as other personal loans, but some of the features are also more particular:

Same-day personal loan funding

Treatments covered by medical loans

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:

IVF treatments

Depending on how many treatments you get, IVF can cost tens of thousands of dollars. Find out more information on IVF loans here.

Cosmetic surgery

Whether it's rhinoplasty, breast augmentation or reconstructive surgery, loans for cosmetic surgery are common in Australia.

Weight loss surgery

For borrowers looking to fund bariatric or other types of weight loss surgery, check out our guide.

Dental loans

Whether it's cosmetic or necessary, dental procedures can post a pretty penny. Find out more about loans for dentistry here.

Hair transplants

People looking for hair transplants can find a range of medical loan options and further information in this guide.

How can I get a medical loan with bad credit?

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 attached.
• 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.

Can I get a medical loan if I'm self-employed?

It is still entirely possible to get a medical loan if you're self-employed. However, providers may look at your finances more closely than if you were employed by a company. 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:

• 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.

What to weigh up: The pros and cons of a medical loan

Should I take the finance offered by my clinic?

Whether or not 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, high interest 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.

How do I apply for a medical loan?

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:

• Be over the age of 18
• Be an Australian citizen or permanent resident
• Be employed or receiving regular payments into your bank account

NAB Personal Loan Unsecured Fixed

NAB Personal Loan Unsecured Fixed

From

9.99 % p.a.

fixed rate

From

10.88 % p.a.

comparison rate

• Additional repayments without penalty
• No early exit fees
• Borrow up to $55,000

100% confidential application

NAB Personal Loan Unsecured Fixed

NAB offers a fixed interest rate loan. Use your loan for a holiday, home improvement, a special project or even a wedding. It’s even a smart way to take control of your credit card debt.

• Interest rate from: 9.99% p.a.
• Comparison rate: 10.88% p.a.
• Interest rate type: Fixed
• Application fee: $150
• Minimum loan amount: $5,000
• Maximum loan amount: $55,000

Go to site

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Name	Product	Interest rate (p.a.)	Comparison Rate (p.a.)	Monthly Repayment	Rates	View details CTA
NAB Personal Loan Unsecured Fixed		From 9.99% (fixed)	10.88%		Interest Rate (p.a.) Comparison Rate (p.a.) Monthly Repayment From 9.99% 10.88% (fixed)	You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.	You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.	Go to site View details	Compare	loading Fetching your data...
Symple Loans Personal Loan		From 5.75% (variable)	6.47%		Interest Rate (p.a.) Comparison Rate (p.a.) Monthly Repayment From 5.75% 6.47% (variable)	You'll receive a personalised interest rate from 5.75% p.a. to 21.99% p.a. based on your risk profile Borrow up to $50,000 to pay for what you need.	You'll receive a personalised interest rate from 5.75% p.a. to 21.99% p.a. based on your risk profile Borrow up to $50,000 to pay for what you need.	Go to site View details	Compare	loading Fetching your data...
NAB Personal Loan Unsecured Variable Rate		From 9.99% (variable)	10.88%		Interest Rate (p.a.) Comparison Rate (p.a.) Monthly Repayment From 9.99% 10.88% (variable)	You'll receive a variable rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile An unsecured loan up to $55,000 you can use for a range of purposes. Benefit from fee-free additional repayments and a redraw facility. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.	You'll receive a variable rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile An unsecured loan up to $55,000 you can use for a range of purposes. Benefit from fee-free additional repayments and a redraw facility. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.	Go to site View details	Compare	loading Fetching your data...

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