What to know about medical loans
What is a medical loan?
Medical loans can be either unsecured or secured against an asset. An unsecured medical loan is when a fixed amount is borrowed over a set amount of time and is paid back in monthly instalments, plus interest.
A secured medical loan is a loan that’s secured against an asset, usually a home. That’s why secured loans are only an option for homeowners. Secured loans are often used to borrow larger amounts, however the lender can use the asset to cover the cost of the loan if the borrower becomes unable to pay back their debt.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
What can medical loans be used for?
Medical loans can be used for a whole range of medical treatments. Here in the UK, dentistry loans and cosmetic surgery loans are popular due to treatments not being available on the NHS. However, you can take out a medical loan to cover any medical treatment. Common uses include:
- Dental work
- Cosmetic surgery
- Private health services
- Emergency surgery
- Fertility treatment
How much can I borrow?
The amount you can borrow for medical finance will depend on your personal circumstances. However, typically with an unsecured personal loan it’s possible to borrow up to £25,000. With a secured loan, it’s usually possible to borrow more.
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