Medical Loans & Financing
Updated: Aug 4, 2022
What Is a Medical Loan?
A medical loan is a type of personal loan that can be taken out to finance a wide range of health care needs. These may include medical procedures, medical debt reconciliations, optional surgical procedures, out-of-network charges, or other costs related to health care that are not covered by your standard health plan.
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What Can Medical Loans Can Help With?
Medical loans can be used to cover a wide range of health care costs that may not be fully covered by standard insurance plans. Here are some common medical procedures and situations that getting such a loan may be able to help you with:
Cosmetic surgery
Fertility treatments
Orthodontics
Treatments or surgery related to weight-loss
Consolidating medical debt
Some people may also opt for a medical loan when they are not sure if their health insurance plan will cover (or fully cover) a procedure. For example, some health plans may not fully cover plastic surgery, so a medical loan may be an option. Other times you may want to obtain treatment for something that is not deemed "medically necessary" by your insurance, and this may cause you to have to cover the costs, in part or in full, of the tests or treatment on your own.
What should I look for in the best medical loans?
There is no one-size-fits-all medical loan since each borrower has a different set of needs. Still, there are characteristics that all good loans share. The best medical loans have:
Low interest rates. The lower the interest rate, the less your medical debt will end up costing. For example, if you were to borrow $5,000 at 6% interest for 48 months, you would pay a total of $636 in interest. If you borrowed the same amount (also for 48 months) at 10% interest, you would pay $1,087 in interest.
Reasonable repayment terms. For example, if you have worked your budget and realize you need at least 36 months to repay the loan without straining your finances, the right loan will offer you at least 36 months. The best medical loans offer a wide range of repayment terms that allow you to find a loan you can afford.
Low fees. When you borrow money to pay medical bills, you don't want to be hit with a lot of fees. While some lenders charge an origination fee of up to 8%, the best surgery loans do not.
Unemployment protection. If we've learned anything over the past year, it's that most of our jobs are not guaranteed. The best medical loans will defer your payments if you lose your job through no fault of your own. This is known as "unemployment protection."
No prepayment penalty. If you find yourself able to pay your loan off early, you need a medical loan that will allow you to do so without a prepayment penalty.
Looking For a Medical Loan?
CLICK Here For Instant Medical Loan Application!