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 requirements 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 ready 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.
What can I cover with a medical loan?
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 if you require specific drugs, treatments or medicines.
Hospital expenses. It can be expensive to stay at a hospital, but you can use a medical loan to cover any of the costs you incur as part of your stay. This could also include any specialised procedures you get 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 treat an ongoing medical issues, 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 related costs. If you're unsure if a particular cost can be covered by a medical loan, it may be worth contacting the lender directly.
What types of personal loans can cover medical expenses?
You can consider a few different types of financing if you require medical treatment:
Unsecured personal loan. You can use unsecured personal loans for any purposes, including medical expenses. You can usually borrow between $3,000 and $50,000 depending on what you can afford to repay and interest rates vary between 8% and 20% p.a.
Short term loan. If you only require a small amount and are not eligible for a standard personal loan, you can consider a short term loan. You can apply for a loan from $100 and have it repaid within a few months. Keep in mind interest rates and fees will be much higher with short term loans.
Credit card. If you have a credit card or are eligible to apply for one, this is another financing option to consider. A credit card can be good if you don't know how much money you'll need to borrow or if you want to take advantage of interest-free periods. Make sure you check your surgery will be eligible as an interest-free purchase and that you have the means to repay the credit you use.
MacCredit Medical Financing
If you are getting cosmetic dental or medical procedures, compare the payment plans from MacCredit.
Please note that the rates, fees and features mentioned here were correct at the time of publication.
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:
Fees. Most loans come with fees and medical loans are no different. Depending on the lender you go with, you may have to pay loan establishment fees or monthly fees as well as fees such as early repayment fees or redraw fees if these features are available.
Interest rate. Check if the loan comes with a fixed or variable rate and if the rate is competitive compared to other personal loans. You should also always consider the comparison rate of the loan since this includes any fees or charges to show the true cost of the loan.
Repayments. Lenders may also differ in how flexible they are with their repayments. Most lenders will offer you the options of making your repayments weekly, fortnightly or monthly, but they also may allow you to make additional repayments to help save you money.
Loan amount. As medical costs can be quite steep, medical loans are usually for higher amounts than other loans. Some medical loans have quite high minimum loan amounts. Some are around $10,000, so make sure you won’t have to borrow more than you need.
Loan terms. As the loan amount is generally higher with medical loans, the lender may offer you a longer period to pay it back as well. Check to see if you will be able to manage the repayments with the loan terms that the lender sets.
If you’d like to apply for a personal loan to finance medical expenses, you can compare your options using the comparison table on this page. You can then click "Go to Site" if you find a suitable loan. 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 be receiving regular payments into your bank account
Citi Personal Loan Plus
Citi Personal Loan Plus
Loan amounts from $5,000
Offers a reusable credit facility
Repay over 5 years
100% confidential application
Citi Personal Loan Plus
A reusable credit facility of up to $75,000. Receive a tailored interest rate between 8.99% p.a. and 17.99% p.a. (9.67% p.a. to 18.6% p.a. comparison rate) based on your risk profile.
Matt Corke is the head of publishing in Australia for Finder. He previously worked as the publisher for credit cards, home loans, personal loans and credit scores. Matt built his first website in 1999 and has been building computers since he was in his early teens. In that time he has survived the dot-com crash and countless Google algorithm updates.
You'll receive a variable rate between 8.99% p.a. and 17.99% p.a. (9.67% p.a. to 18.6% p.a. comparison rate) based on your risk profile A credit limit up to $75,000 that you can continue to draw down over terms up to 5 years. Note: The establishment fee will be waived if you apply before 30 September 2019.
How likely would you be to recommend finder to a friend or colleague?
Very UnlikelyExtremely Likely
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of major banks, insurers and product issuers.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product. You should consider whether the products featured on our site are appropriate for your needs and seek independent advice if you have any questions.
Products marked as 'Promoted' or "Advertisement" are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options and find the best option for you.
The identification of a group of products, as 'Top' or 'Best' is a reflection of user preferences based on current website data. On a regular basis, analytics drive the creation of a list of popular products. Where these products are grouped, they appear in no particular order.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment.
We try to take an open and transparent approach and provide a broad based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.