Medical care can be expensive, with costs often running to thousands of dollars, especially if your treatment isn’t fully covered by Medicare or private health insurance.
If you need a procedure, a medical personal loan can help spread the cost, meaning you can access the treatment you need without shouldering the full financial burden upfront.
What is a medical loan?
A medical loan is a personal loan that allows you to borrow a fixed amount to cover healthcare expenses. These loans are usually unsecured, meaning you won't need to provide any collateral, just meet the lender's eligibility criteria, though secured options may be available.
The funds are paid to you as a lump sum, giving you the flexibility to pay your medical bills as you choose, as well as cover other expenses like medication, rehabilitation or income support during recovery. You'll then repay the loan over a fixed term through regular instalments, including interest and any applicable fees, as outlined in your loan contract.
What can I use a medical loan for?
You might take out a medical loan to help pay for treatments and procedures not covered by Medicare or private health insurance, or if you'd rather have a procedure done privately rather than wait for public treatment, as well as other healthcare expenses.
This can include:
- Elective surgery
- Hospital costs
- Dental treatments
- IVF and fertility treatment
- Cosmetic surgery
- Laser eye surgery
- Medication and medical equipment
- Travel and accommodation
- Living expenses during recovery
As the loan isn't tied to a specific purpose, you're not limited to a single procedure or expense, meaning you can use the funds to cover multiple medical costs, or for anything else you need.
How much will my medical loan cost?
You can typically borrow from $5,001 up to $75,000 unsecured, and more secured, depending on your financial circumstances and how much a lender is willing to approve.
However, the amount you borrow is only part of the overall cost.
You’ll also need to factor in interest and any fees charged by the lender. Fees can add significantly to the cost, so it’s worth looking at the comparison rate, which includes the interest rate and most standard fees, rather than focusing on the advertised rate alone.
The average medical loan financed through Savvy in 2025–26 was $22,390.
The loan term you choose can also make a significant difference. A longer term can reduce your monthly repayments but generally means paying more interest overall, while a shorter term will usually cost less in interest but result in higher repayments.
Example: Zoe finances laser eye surgery
Zoe wanted laser eye surgery to correct her vision, but the $6,000 procedure wasn’t covered by Medicare or her private health insurance. To cover the cost, she took out a medical loan for the full amount, spreading out her repayments over three years at 9% p.a. Here's how the costs worked out:
| Loan cost | Amount |
|---|---|
| Loan amount | $6,000 |
| Monthly repayment | $191 |
| Total interest | $869 |
| Total repayments | $6,869 |
| This is an illustrative example only, based on an example interest rate and excluding fees and other charges. Approval and the interest rate you're offered will depend on your circumstances, credit history and the lender's eligibility criteria. | |
You can use our personal loan repayment calculator to estimate your own repayments and see how different loan amounts or terms could affect the overall cost.
Pros and cons of medical loans
Pros
-
Access treatment sooner
Medical loans give you access to funds upfront, helping you pay for urgent or time-sensitive treatments without delay.
-
Covers a wide range of healthcare expenses
Medical loans aren’t limited to one procedure or purpose so you can use them for a variety of costs up to your loan limit.
-
Fill the gaps not covered by Medicare or insurance
If your health cover only pays part of the cost (or none at all), a loan can help you manage out-of-pocket expenses more easily.
-
Spread the cost of recovery
You can borrow extra to help cover recovery-related costs such as medication, rehab or even living expenses while you’re off work.
Cons
-
Interest adds to the total cost of care
While loans make treatment more accessible, you’ll end up paying more overall due to interest and any applicable fees.
-
Not suitable for ongoing or indefinite care
If your condition requires long-term or unpredictable costs, a one-off loan may not be the best funding option.
-
Approval depends on your credit and income
If your credit score is low or you’ve had a disruption to income due to illness, it may be harder to qualify or get a competitive rate.
-
Risk of debt stress during recovery
Taking on a loan while recovering from surgery or illness could add financial pressure at a time when you need to focus on healing.
How to get a medical loan through Savvy
-
Complete our online form
Tell us about yourself and how much you’re looking to borrow.
-
Send through your documents
We may need additional information to verify your application.
-
Get matched with a lender
We’ll review your application and walk your through your options.
-
Have your application prepared
We’ll prepare and submit your application to your lender.
-
Receive your funds
Once approved, we’ll handle loan settlement so you can fund your treatment.
Why apply for a personal loan with Savvy?
Medical loan eligibility and documentation
Eligibility
-
Age
You must be at least 18 years of age
-
Residency
You must be an Australian citizen or permanent resident (or, in some cases, an eligible visa holder)
-
Income
You must be earning a stable income that meets your lender’s minimum threshold (this can start from as little as $20,000 per year)
-
Employment
You must be employed on a permanent, casual or self-employed basis
-
Credit score
You must meet your lender’s minimum requirements related to your credit score and not be bankrupt or under a Part IX debt agreement
-
Contact
You must have an active phone number, email address and online bank account in your name
Documents
-
Personal information
Your full name, date of birth, address and contact details
-
Photo ID
Such as a driver's licence or passport
-
Payslips
Your last two consecutive payslips (or your last tax return if you're self-employed)
-
Assets and liabilities
Information about any assets you own (such as a car or house) and liabilities in your name (such as other loans)
-
Bank statements
90 days of bank statements may be requested, but not always
What alternatives are there to medical loans?
Personal loans can be a convenient option when it comes to paying for medical treatment, but there are other options that could help you cover your costs:
Health insurance
Private health insurance can cover a range of medical treatments, from hospital stays to some dental and fertility services. However, there are often waiting periods, exclusions and limits on how much you can claim, so it’s important to be aware of what you’re covered for before getting treatment.
In-house payment plans
Many private hospitals, dental clinics and fertility centres offer payment plans directly. These allow you to spread the cost over time, usually interest-free or low-cost, but the repayment terms may be shorter than with a personal loan.
No Interest Loans (NILs)
Provided by Good Shepherd, NILs offers eligible Australians up to $2,000 for urgent and essential expenses, including medical and dental costs, with no interest or fees. Rather than receiving cash, the loan is paid directly to the provider.
Credit cards
For smaller or one-off expenses, a credit card, especially one with a 0% interest introductory offer, can be a useful option. Just keep in mind that if you carry a balance past the interest-free period, credit card rates are typically much higher than personal loans.
Buy now, pay later (BNPL)
Platforms like Afterpay and Zip allow you to split smaller medical bills into instalments. These can be a useful way to pay for lower-cost services like minor dental work, but they may charge late fees and affect your credit if you fall behind.
