Medical loans

By Polly Fleeting ·

Medical bills can be costly, no matter the size of your procedure. 

A medical loan, or even a more specific cosmetic surgery loan, might be what you need to keep you financially prepared for anything and everything you need when it comes to medical costs. These loans cover many things, from a serious cancer treatment or major operation to a dental procedure or cosmetic surgery. 

Start comparing loans below. 

Personal Loan Comparison Table - last updated December 03, 2020

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I want to borrow


  • mozo-experts-choice-2021

    6.95% 17.95% p.a.

    6.95% 17.95% p.a.based on $30,000
    over 5 years

    Terms from 2 to 7 years. Representative example: a 5 year $30,000 loan at 6.95% would cost $35,599.71 including fees.

  • 5.75% 21.99% p.a.

    6.47% 25.11% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $35,190.18 including fees.

  • 6.49% 8.99% p.a.

    6.84% 9.34% p.a.based on $30,000
    over 5 years

    Terms from 3 to 5 years. Representative example: a 5 year $30,000 loan at 6.49% would cost $35,459.64 including fees.

  • mozo-experts-choice-2021

    6.75% 8.48% p.a.

    6.96% 8.69% p.a.based on $30,000
    over 5 years

    Terms from 1 to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,580.23 including fees.

  • mozo-experts-choice-2021

    6.95% 19.99% p.a.

    6.95% 19.99% p.a.based on $30,000
    over 5 years

    Terms from 1 to 5 years. Representative example: a 5 year $30,000 loan at 6.95% would cost $35,599.71 including fees.


Why get a Medical loan?

Tailored specifically for your medical needs, a medical loan could be one for anything from dental, to breast augmentation, laser eye surgery to hip replacement. The list goes on as potential treatments and procedures are endless. Here are some scenarios where you may need an extra cash injection: 

  • Elective surgery is a medical procedure that is considered to be not essential and almost purely cosmetic. Could be anything from breast enlargement or reduction, rhinoplasty to liposuction. Cosmetic surgery loans allow you to borrow the money you need to get your procedure done. As long as you meet the repayment requirements, you can get all the elective surgery your heart desires! Look at the right places and you’ll see that rates are mostly comparative to personal loans.
  • Medical travel is becoming more and more common. There are lenders who will cover you for the cost of the medical procedure overseas and the travel expenses incurred. But if you need to correct any errors when you return to Australia, you must ask yourself: are you prepared to pay more? It's essential to work out your budget and the risks you’re willing to take by having a procedure done overseas, both medically and financially.
  • Dental surgery is another procedure you can pay for with a loan. Whether it's elective or essential surgery, dental surgery loans will cover all costs associated to the procedure. What about ongoing costs and treatment? This is a conversation between you and your Orthodontist, and that you'll have to consider in your budget. 

Pros and cons of medical loans

Like all loans there are positives and negatives associated that you can’t really avoid. Here are some:

An obvious plus is that you get a bundle of money you need upfront to get on with your treatment.If you have an urgent procedure, then going through the loan approval rigmarole may not be quick enough.
It’s a sense of relief and a little bit of self-empowerment up your sleeve for when you need it most.If it’s more urgent than not, then you may need to opt for existing credit cards with high interests, which is really not ideal at all.
A medical loan can give you the confidence to get the results you desire that you wouldn't be able to achieve without the assistance of a loan.

Borrowing options for medical loans

If you have a means of paying off a loan, then lenders will be more than happy to to lend you the money to cover medical costs - specially if it’s secured. There are a number of lenders who have loans specifically geared toward medical procedures. But for those who don’t, more conventional options include personal loans and credit cards.

Let’s have a closer look:

Personal loans

Whether you have one thing to pay for or more, a personal loan can give you the flexibility to pay for your medical procedure.

  • What's hot? 

Once approved for a personal loan, you will have an agreed amount available to you to spend as you wish. Your main aim is to use the money to pay for your medical procedure to cover all expenses from doctor, anesthetist to recovery room and travel costs. Fees and rates are competitive between lenders, so you should have the opportunity to secure a good deal. Mozo can help you to compare personal loan rates by clicking the link.

  • What's not? 

Some lenders don’t require you to produce proof of how you will use the money you secure, so you may be tempted to spend it on other things. While you’re recovering and have less or no income coming in, you may be tempted to pay for everyday expenses like groceries, car payments and utility bills, putting you at risk of becoming more complacent with these types of expenses in the future.

Credit cards

Not sure how much you need? A credit card could be the money solution you need when you need to spend but don’t know how much in the early stages.

  • What's hot? 

The bigger the credit card limit the more availability you have to cover expenses for your medical procedure or treatment. It means you don’t have to worry in the immediate stages how much you spend and how much you need to pay back. The money is there and ready for you to use as you require it. As credit cards are becoming more and more competitive, you could secure one with a very low interest or interest fee for a period of time.

  • What's not?

The massive risk has everything to do with overspending. What if you spend beyond your means of repayment? What if you’re tempted to use your credit card to consume beyond your medical treatment? Since going through medical treatment or procedures usually means you’re about to go through your recovery stage (and therefore your regular income may not coming in), any expenses beyond your medical treatment may be deemed as reckless. After all, you have a direct purport for using borrowed money, not to consume for the sake of it.

RELATED GUIDE: Personal loans vs credit cards

How much can I afford to repay?

Well, that all depends on how much you need and how fast.

You may be able to pay for minor surgery with existing credit cards or a new one for that matter. But have you thought about your savings? Using the money you already have is always a possibility. It's just crucial to remember to consider your everyday expenses because if you can’t cover your food, utility bills and petrol, then a loan may be your only option. 

It's always wise to get a quote from your medical practitioner on the expected costs involved with your medical procedure. Bear in mind your down time, which means expected time off work and factor that into the whole amount. After you have a fair idea on the costs, use Mozo’s personal loan repayment calculator to help you plan a budget for the short and long term.

How do I manage repayments

The simple answer is, you’ll want to focus on repaying your loan as fast as possible. If it’s an option, you may even consider paying fortnightly or even weekly. That way you’ll get a good grasp on your budget and how much is left at the end of the week or fortnight. Plus, if there is the option to make extra repayments and pay down your loan early (and you are able to), do it! 

Now’s the time to restrict spending sprees (including curbing online shopping from your recovery bed!) while you undergo your procedure. Especially since your income will most likely be reduced during your recovery time.

Pick up some dusty novels from the bookshelf and give them a go, or try writing a journal. Fill up your days with whatever it takes to make the day go faster and to keep you away from dipping into your account. Happy healing!

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Polly Fleeting
Money writer

Polly Fleeting is a personal finance writer here at Mozo, specialising in loans and credit cards. Her work is aimed at helping people find ways to make smart product choices, reduce debt and get more for their hard-earned dollars. Polly has a degree in Journalism from the University of Technology, Sydney.