medical loans personal loans

Medical loans

Looking for a personal loan to help you cover the cost of an emergency dental procedure, a sports injury, IVF or another medical issue? Mozo helps you to compare loan options from a range of banks and lenders in Australia so that you can find the one that best meets your needs.

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How do medical loans work?

A medical loan is like any other personal loan you take out for a big one-off expense, only instead of using the loan to buy a new car or kitchen, you’re using the money to cover medical expenses. With these loans you get the money you need upfront and pay it back over time. Of course with any personal loan you’ll be paying interest on the money borrowed so it’s a good idea to find the lowest rate loan with low fees.

How much can I borrow for a medical loan?

Medical expenses, especially for big procedures or surgeries can quickly add up, but you’ll be happy to know that our comparison tables feature loans from many lenders that will allow you to borrow as much as $50,000. In saying that, with any loan, you’ll need to be able to prove to the bank or lender that you can meet the regular repayments so how much you’ll be able to borrow will depend on your income, assets and other liabilities.

How do I apply for a medical loan?

The great news is that these days, you can apply for a loan online and in some cases have the money deposited into your Australian bank account within a few days. Here at Mozo we can connect you direct with many lenders where you can start your application. There is no need to visit a bank branch.

Medical loan comparisons on Mozo - last updated 22 May 2022

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    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.
    5.96% p.a.based on $30,000
    over 5 years

    Handypay offers flexible home improvement loans for Excellent Credit or better. Handypay is a specialist home improvement plan provider and offers loans up to $75,000.

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  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.35% p.a.to 19.09% p.a.
    6.14% p.a.to 19.99% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.35% would cost $34,832.61 including fees.

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  • Green Loan

    interest rate
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    Monthly repayment
    5.79% p.a.
    6.36% p.a.based on $30,000
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    Handypay offer flexible green loans up to $75,000 for Excellent Credit or better. Handypay is a specialist home improvement plan provider.

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    Monthly repayment
    5.75% p.a.to 25.99% p.a.
    6.68% p.a.to 29.2% p.a.based on $30,000
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    Fixed

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    Monthly repayment
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    6.68% p.a.to 29.2% p.a.based on $30,000
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FAQ

Medical loans 101

If you’re after a loan that will help cover the costs of a surgery or to cover some urgent medical expenses you’ll want to brush up on the basics. We’ll have you an loan expert in no time so that when it comes to choosing which loan and lender to go with you’ll know you’re making an informed choice. 

What interest rate options do I have for Medical loans?

When it comes to borrowing money for medical purposes, the bank or lender won’t be all that concerned why you are borrowing money; you could be using it for a renovation or to buy a boat. What they will be concerned about is your ability to pay back the loan amount.

You will generally have the option between a fixed or a variable rate loan. A fixed interest rate loan means that for the duration of the loan period your loan repayments will remain fixed. Many people prefer this option as it allows them to budget effectively.  With a variable rate loan, your repayments could go up or down during your loan period. Generally variable rate loan have flexible features like extra repayment and redraw facilities. These can be useful if you are able to make more than the minimum repayment so that you can pay off your loan sooner.  

How do I compare medical loans between providers?

You’ll notice that our table and all loans in our database have two sets of interest rates advertised, the interest rate and the comparison rate. The comparison rate combines the headline interest rate with any loan fees into a single rate. It’s a good idea to use this rate to compare loans between providers because often some lenders that have low interest rates could have higher fees, so by using the comparison rate you are able to make a more informed choice.

Just be aware that the comparison rate advertised is worked out on a set criteria. If your loan amount or loan term is different to this your comparison rate will be different to this rate but the lender will be required to tell you what it will be. Also, you may find that you will get a different rate whether you're applying for a Melbourne personal loan or Sydney personal loan or somewhere else.

How quickly can I get a medical loan?

The great news is that with online applications and approvals some personal loan providers can turn around your application and get your medical loan approved pretty quickly. Medical loans can be applied for online and conditional approval can be granted in as little as 60 seconds with official approval and funds often received within 24-48 hours. 

Can I get a medical loan with bad credit?

There is no way to be certain that you’ll be approved for a medical loan and if you’ve had a chequered past when it comes to borrowing cash it could be a little harder or you may have to pay a premium when it comes to the interest rate on your loan. However, it certainly isn’t impossible and there are even a few easy ways to improve your chances of being approved.

  • Start small - Smaller loans are less of a risk for lenders and also require less of an income to service, so make sure you’re not blowing yourself out of the water by asking for too much cash unnecessarily.
  • Show you’ll be able to meet repayments - Lenders will look upon your application more favourably if you’ve shown that you’re a steady saver by making regular deposits into a savings account  as it will show them that you’ll be able to meet your new loan repayments. This is especially important if you haven’t previously applied for credit in the form of a different personal loan or credit card.
  • Keep on top of bills and payments - Even if you haven’t been so diligent in the past, make sure you keep your recent credit history as clean as possible. A missed repayment two years ago doesn’t look so bad when you’ve consistently made the last 18 months worth of repayments on your credit card.

Should I choose a secured medical loan?

If you’ve got a home loan, you might be able to opt for a secured loan for your medical expenses. ‘Securing’ your loan means that you’re offering up an asset as security for the loan and in return, providers will offer you a more competitive interest rate. But keep in mind that if you default on the loan, they could then seize the asset you’ve placed on the table.

If that isn’t an option for you or just not something you’re comfortable with, not to worry, you can always choose an unsecured personal loan.

What types of procedures can I use a medical loan for?

Whether you’re after a facelift, some liposuction or in need of something a little more structural like a knee reconstruction or hip replacement, medical loans can help cover the costs for a range of procedures and surgeries. This includes elective surgery, which is when you go under the knife for non-essential procedures, like cosmetic or laser eye surgery. But you can also use a medical loan to pay for dental procedures as well as to help cover the costs of any essential surgeries - like an appendectomy if you suddenly fall victim to appendicitis. 

Are medical loans just for surgeries and procedures?

No, you can use medical loans for a host of health-related expenses including travel costs for overseas procedures or to pay for a series of specialist appointments. Just bear in mind that if you do plan on fueling a trip overseas for a medical procedure with one of these loans, the money you receive into your bank account will be in Australian dollars. If that’s the case for you and you’re looking for a way to use that money overseas, head over to our travel money hub to find the perfect way to spend your money abroad.

Are there any restrictions on what I use my medical loan for?

When you apply for a personal loan you’ll usually have to nominate what the money will be used for and more often than not, medical expenses will be an option you’re given by the provider. Aside from that, there are very few restrictions on how you spend the money you’re approved for. One thing to keep in mind, however, is that you don’t want to be using a medical loan for everyday expenses - like groceries or utilities - as it’s a form of income that can dry up quickly, especially if you’re taking some time off work to recover from a big procedure or serious illness.

Will medicare or private health insurance help cover my medical costs?

Medicare - Australia’s publicly funded form of healthcare - will definitely help cover the cost of a range of medical expenses, whether it be an unexpected few days at the hospital or an elective surgical procedure. But you’re at the mercy of the public health system which often means lengthy waiting times for consultations and procedures.

For this reason, a lot of Australians choose a private health insurance provider to help cover their medical costs as well as provide them with a few added health perks like choosing a specific surgeon or hospital. But even then, medical costs can easily balloon beyond the caps and coverage levels provided by health insurance providers in Australia, which is where a medical loan can come in handy.

Is a medical loan a good choice for ongoing medical expenses?

Generally speaking, medical loans are a good choice if you’re trying to fund a large, one-off medical expense that your budget can’t accommodate rather than any ongoing costs. This is because eventually the loan amount will run out, meaning you’ll have to find another way to stump up for your continuing medical expenses.

If you’re looking for a way to accommodate any ongoing health-related costs into your current budget, why not run a refresh using Mozo’s budget calculator. It will give you the option of adding in the cost and its frequency alongside all of your other expenses so that you can build a budget that works for you in the long-term

Personal Loan Reviews

St.George Personal Loan
Overall 8/10
Not bad but could be better

The interest rate does seem higher than other banks. I would love it to be more competitive

Read full review

The interest rate does seem higher than other banks. I would love it to be more competitive

Price
6/10
Customer service
7/10
Convenience
9/10
Trust
8/10
Less
Liza, New South Wales, reviewed 20 days ago
Commonwealth Bank Personal Loan
Overall 4/10
Beware: They sold me Junk Insurance

Took out a $10,000 personal loan for a medical procedure. I’ve been a lifelong customer of Commonwealth Bank and thought they’d offered me a good package as this is the first and only loan I’ve had. Was unknowingly sold junk insurance and am now part of a class-action suit for a refund of the insurance and interest they charged. Here’s hoping they do the right thing!

Read full review

Took out a $10,000 personal loan for a medical procedure. I’ve been a lifelong customer of Commonwealth Bank and thought they’d offered me a good package as this is the first and only loan I’ve had. Was unknowingly sold junk insurance and am now part of a class-action suit for a refund of the insurance and interest they charged. Here’s hoping they do the right thing!

Price
4/10
Features
3/10
Customer service
7/10
Convenience
7/10
Trust
2/10
Less
Stephanie, New South Wales, reviewed 25 days ago
Bendigo Bank Unsecured Personal Loan
Overall 10/10
The bank who cares

They are very transparent with their fee's and we were able to get an unsecured loan to pay off our credit card and pay for a trip to England when my father died. We only had one person who was on a permanent wage and don't live in a home we own. No mortgage and we've managed to have it almost paid off in 4 years

Read full review

They are very transparent with their fee's and we were able to get an unsecured loan to pay off our credit card and pay for a trip to England when my father died. We only had one person who was on a permanent wage and don't live in a home we own. No mortgage and we've managed to have it almost paid off in 4 years

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Michelle, New South Wales, reviewed about 1 month ago

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