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Medical Loans Australia: Finance for Surgery & More

  • Compare medical loan rates and fees from multiple lenders in one place.
  • Review personalised offers for medical finance to see if there’s a deal for you

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Medical and Dental Loans with Money Matchmaker

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Medical loan interest rate comparison

Compare some of the best medical loans in Australia. We display all medical loans on our database and we’re not paid by lenders if you click through to their website. The table is sorted by lowest interest rate. Use the filters to search for your best medical loan options. Read the comparison rate warning and other important information.

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Rates updated 02 December 2024

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Why compare medical loans with Money

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What are medical loans?

A medical loan is a personal loan that helps cover the cost of medical treatment, such as surgery. A lot of lenders advertise medical loans as a separate product, but what they’re offering is generally the same as any other kind of personal loan.

You see, personal loans can be used for more or less any purpose.

This means they can be used for medical procedures - covering clinical and administrative costs.

How do medical loans work?

Here’s how a medical loan in Australia typically works:

  • Borrow between $2,000 and $100,000 (the maximum varies by lender)
  • Repay it over a term of between 1 and 7 years
  • Make weekly, fortnightly or monthly repayments
  • Your interest rate could be fixed or variable
  • Loans are usually unsecured but there may be secured options
  • Your interest rate will depend on your financial situation

Why do people take out medical loans?

By international standards, Australia has an advanced public health system. And private health insurance is there to fill in a lot of the gaps.

But people can still end up with large medical bills.

This is why medical loans are available.

Here are five common reasons why Australians use medical loans:

1. The procedure isn’t covered by Medicare

If the procedure you're having isn't covered by Medicare (and you’re also not covered by private health insurance), a medical loan could help finance it.

For example, Medicare generally does not cover:

  • Private hospital costs
  • Elective cosmetic procedures
  • Dental treatment
  • Laser eye surgery
  • Select medications
  • Some types of home care

2. Private health insurance won’t cover the cost

This could simply be because you don’t have private health insurance, or your policy doesn’t cover a particular treatment. Even a very high level of private health insurance will have its limits.

3. You’re having the procedure done overseas

Medicare and private health insurance generally won’t cover you if you choose to travel overseas to have the procedure.

4. You don’t want to wait for the public system

What if the procedure you need is covered in the public system but there’s a long waiting list. Taking out a medical loan and paying for private medical care could be an alternative.

5. There are large related costs to cover

The medical cost itself is just one aspect of funding a medical procedure. A medical loan could cover that plus the related costs, like travel, lost income and aftercare costs.

What can you use a medical loan for?

  • Cosmetic surgery
  • Other elective surgery
  • Dental work
  • Laser eye surgery
  • Specialist appointments
  • IVF
  • Medication
  • Rehabilitation costs
  • Medical equipment
  • Travel costs
  • Private hospital accommodation

How to choose the best medical loan

Understandably, getting the best medical treatment you can will be your priority. But taking the time to find an appropriate medical loan that offers good value could make the finance process easier and less expensive.

Here’s what you should look at:

1

Loan purpose

It’s worth confirming up front whether the lenders place any restrictions on what you can use your medical loan for.

2

Borrowing amount

Likewise, make sure the lenders you’re considering offer loans of the right size for what you need.

3

Interest rates

This will be the biggest cost of the finance. Try to get the lowest interest rate you’re eligible for. Your interest will depend on various factors like your credit score, the loan amount, loan term and your overall financial position.

4

Loan term

Ideally look for a short repayment term. This will keep your interest costs down. The average personal loan term is just under three years.

5

Repayments

Based on the loan amount, interest rate and loan term, you’ll be able to calculate your regular loan repayments. Can you afford these comfortably?

6

Early repayment

Another way to reduce costs is making extra repayments on your medical loan if you can afford to. Look for loans that allow you to do this without penalty and don’t charge a fee if you repay the loan in full early. This can also make life easier if you want to do a personal loan refinance down the track.

7

Fees

Like most loans, medical loans also come with fees to be aware of (that will add to the cost of your loan)

Make an informed decision when seeking a medical loan

Shaun McGowan Money.com.au founder

Shaun McGowan, Loans Expert

“Medical loans in Australia provide crucial financial support for healthcare expenses, but understanding the terms and repayment obligations is important. Ensure you're well-informed about interest rates, repayment schedules, potential fees and the overall cost of the loan to make the most informed decision for your health and financial wellbeing.”

Shaun McGowan, Loans Expert

5 medical loan fees to look out for

  • Upfront costs: Establishment fees and application fees
  • Ongoing fees: Annual and monthly fees
  • Extra repayment fees: Charged if repay extra to reduce the loan balance and interest charged
  • Early repayments fee: Some lenders charge this if you completely repay the loan before the end of the scheduled term
  • Late payment fees: Charged if you miss a payment

Are you eligible for a medical loan?

Qualifying for a medical loan is generally less about what the loan is being used for and more about who you are.

Typically you must be:

  • Over the age of 18
  • An Australian citizen or permanent resident
  • Employed or have a regular source of income

Although these are the basic requirements, each lender will have its own way of assessing personal loan applications.

This boils down to establishing whether you are going to be able to repay the medical loan comfortably for the full term.

To do this lenders generally look at factors including:

  • Your credit history and credit score (You can check your credit score first to ensure you’re in a good position to be approved)
  • Your income
  • Your employment status (full time, self-employed etc.)
  • Your regular expenses
  • Your other debts (e.g credit card limits)
  • The assets you own (i.e. house, car or shares)
  • How many dependents you have

Lenders typically also use these factors to determine your interest rate.

Essentially, the more risk a lender sees in your application, the higher your rate is likely to be.

Applying for a medical loan in Australia

Okay, so you’ve compared your options. And you’re confident you meet the eligibility criteria. What now?

Here’s what’s usually involved in making an application for a medical loan:

  • Complete an application form with your personal and financial details
  • Lenders generally also ask about the purpose of the loan to assess if it is suitable
  • Provide any supporting document requested (e.g. payslips, bank and credit card statements)
  • Wait for your loan application to be assessed (this can also happen very quickly)
  • If approved, sign a loan contract
  • The loan funds will be transferred to your nominated bank account

It may be possible to have a medical loan approved with the funds in your bank account in 1-2 business days.

For more complicated applications, like bad credit personal loans or low doc personal loans for self-employed borrowers the process will likely take a bit longer.

Ready to compare medical loans?

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Personal loan guides & resources

Not sure about the next steps? Our guides and resources can help.

FAQs about medical loans

Interest rates on medical loans generally start at around 6%. But they can be as high as 20% or even higher for some borrowers. Your interest rate will be tailored to you based on your credit history and financial situation, including your income, expenses and other debts.

Some clinics offer interest-free medical finance to patients through a partner finance company. This can seem appealing but there are some major potential drawbacks to be mindful of.

The no-interest offer may only be for a short part of the loan term, after which high rates may apply. Instead of interest, there could be very high fees. With some no-interest finance, the term of the finance is quite short. This can mean very high repayments, and potentially late repayment fees if you can’t keep up with them.

You may be able to get a medical loan if you have bad credit. But it’s important to know which lenders to consider and which ones to avoid. For example, the major banks and credit unions generally only lend to borrowers with a good credit score.

Applying through a specialist bad credit lender may give you the best chance of approval. Just bear in mind that the interest rate you will be charged will likely be higher than the rates advertised by traditional lenders.

If you need help finding a loan you’re eligible for, you could speak to a personal loan broker.

Yes, most borrowers will lend to you even if your medical procedure is to be performed outside of Australia.

Medical loans have limits from $2,000 to $100,000. The amount that you can borrow will depend on the lender, your credit history and overall debt servicing ability.

Yes, a medical loan can generally be used for most costs related to your medical procedure. That includes paying for your expenses while you recover.

If you want the certainty of having the same repayment for the entire loan term, a fixed rate medical loan may be suitable. But if you are looking for more freedom to repay the loan early without penalty fees, variable rate loans generally offer greater flexibility.

Which option is better will ultimately come down to your preferences.

A lot of borrowers simply opt for the lowest rate medical loan they can find, whether it’s fixed or variable. And there is nothing wrong with that approach if that is your priority.

Medical loans are usually unsecured personal loans. That means the borrower doesn't need to put up an asset as collateral to secure the loan. But some lenders offer secured personal loans that could be used to cover medical costs.

If you own an asset that could be suitable (a vehicle, shares, cash savings, house) you could use it as security to get a lower interest rate. The downside of doing that is the lender can repossess the asset to cover its costs if you can’t repay your medical loan.

Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.

Shaun McGowan is the founder of Money.com.au. He's determined to help people and businesses pay as little as possible for financial products, through education and building world class technology. Previously Shaun co-founded CarLoans.com.au and Lend.

Important information

Unless otherwise stated, personal loan comparison rates are calculated based on a loan amount of $30,000 repaid over a 5-year term. The comparison rates only apply to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan. Check with the provider for full loan details, including rates, fees, eligibility and terms and conditions to make sure the product is right for you.

General information only The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of any personal loan product is suitable for you and seek independent financial advice if necessary.

We are not providing you with a recommendation or suggestion about a particular personal loan. You should read the relevant disclosure statements or other offer documents before deciding whether to apply for or continue to use a particular product.

What products, features and information are shown While we make every effort to ensure all personal loans available in Australia are shown in our comparison tables, we do not guarantee that all products are included.

Our product comparisons may not compare all personal loan features and attributes relevant to you. Product information, such as interest rates, fees and charges, is subject to change without notice. Before acting on any information, you should confirm the relevant product information with the lender.

How personal loans are sorted and filtered by default Users can easily change the sort order and apply product filters to our product comparison tables. However, when you arrive on a page initially, by default personal loans are sorted by:

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  • Provider name (A-Z)

Some personal loan products listed in our tables are available through a broker. These are the products with an option to ‘Check Eligibility on Money.com.au’. Brokers may not be able to offer loans from every provider and there may be more suitable loans for your personal circumstances. Brokers are not authorised by Money's Australian Credit Licence and operate under their own Australian Credit Licence, or as a credit representative of another Australian Credit Licensee. Brokers can make recommendations about loan products that may suit your objectives, financial situation and needs.

Our tables feature all personal loans available from lenders on our database that match the search criteria selected. Lenders do not pay to feature in our tables, nor do we earn commission if you click to visit a lender’s website. The order of the products in the table is not influenced by any commercial arrangements.

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