Summary

  • You can choose to go with a specialised veterinary loan or a general personal loan to pay for your vet bills. Not every personal loan provider offers specialised vet loans but most banks and non-bank lenders have personal loans.
  • It’s important for pet owners to do their research before committing to any personal loan. You should compare the interest rate, fees, features, whether it is a fixed-rate or variable-rate loan, how long the loan term is and whether it is a secured or unsecured loan.
  • Being hit with an unexpected vet bill could put you in a tight spot. Taking out a veterinary loan means you can pay it down over a period of up to seven years, which could soften the blow to your regular cash flow.
  • On the down side, you can expect to pay more if you decide to take out a veterinary loan than if you choose to pay the vet bill with your own money.

Find and compare veterinary personal loans

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Advertised Rate

6.95%

Fixed up to 17.95%

Comparison Rate*

8.57%

Company
Pepper
Monthly repayment

$926

36 months

Loan term

1 year to 7 years

Total repayments
Real Time Rating™

3.56

/ 5
Go to site
More details
Advertised Rate

12.69%

Fixed

Comparison Rate*

13.56%

Company
NAB
Monthly repayment

$1006

36 months

Loan term

1 year to 7 years

Total repayments
Real Time Rating™

2.99

/ 5
Go to site
More details
Advertised Rate

12.69%

Variable

Comparison Rate*

13.56%

Company
NAB
Monthly repayment

$1006

36 months

Loan term

1 year to 7 years

Total repayments
Real Time Rating™

3.08

/ 5
Go to site
More details

Learn more about personal loans

If your pet is in good health, the last thing you’d expect would be to spend thousands of dollars on veterinary care. 

But you might have no other choice if your furry friend was hit by a car or suffered some other emergency. If this happens, you might need a veterinary loan to pay your vet bills.

What are veterinary loans?

Some lenders provide veterinary loans, which are specialised personal loans used to pay for veterinary bills. You can also use general personal loans to pay vet bills or other pet-related costs.

People sometimes have to use veterinary financing if their pet is rushed to the vet for an emergency, and then get hit with a hefty bill which they hadn’t budgeted for.

Who offers veterinary loans?

You can take out a loan specifically for vet bills with selected personal loan providers. The ones that tend to have specialised veterinary loans are non-bank lenders that focus on personal loans. In some cases, the lender may directly pay your vet bill for you. You would then repay this vet loan over the loan term.

Some pet owners prefer to pay the vet bill themselves after receiving the funds from the lender. For these people, a general personal loan may be a more suitable option, and can be accessible from many banks and non-bank lenders.

What should I look for in a veterinary loan?

Like all personal loans, it’s important for borrowers to compare various veterinary loans before deciding which one suits you best. There are six main ways to compare veterinary loans, or personal loans in general:

  1. Interest rate – Veterinary loans are generally more affordable if your interest rate is lower, as it determines how much you'll need to pay back on top of the original amount you borrowed. Make sure to look at the advertised rate, as well as the comparison rate, which combines the advertised rate and fees.
  2. Interest type – The type of interest you choose will affect the interest rate you’ll be charged and how much interest you pay. A variable interest rate might move up or down during the course of your loan, while a fixed interest rate will not.
  3. Loan term – You may pay lower repayments each month with a longer loan term, but your total repayments over the life of the loan are higher. On a shorter loan term, your monthly repayments will be higher but you will pay less in total interest, reducing the cost of the loan to you.
  4. Fees – Don’t forget to look at fees when comparing vet loans. Potential fees include upfront (or establishment) fees, ongoing (or monthly) fees, early exit fees, redraw fees and late payment fees. Fees can significantly alter the total cost of the loan.
  5. Security – Some vet loans will require security (or collateral), while others won’t. As a general rule, secured personal loans will have lower interest rates than unsecured personal loans, because lenders see them as carrying lower risk.
  6. Features – Some features are not available on all personal loans, but can make your loan more flexible and help you save money. Examples of features include additional repayments (which means you’re allowed to pay back your loan faster), redraw facilities (which allow you to access the money you’ve paid off ahead of schedule) and early exit (which means you can close your loan ahead of schedule).
What are the pros and cons of veterinary loans?
  • Can pay off the vet bill over a period of up to seven years
  • Less costly than using a credit card
  • Borrowers follow a regular repayment schedule, unlike credit cards
  • Interest and various fees charged over the life of the loan
  • Credit score may be damaged if you’re late with repayments or unable to repay the loan

Can people with bad credit take out veterinary loans?

People with bad credit can, in some circumstances, take out veterinary loans. As a general rule, this is how personal loan lenders treat people with good credit and bad credit:

Good credit

Bad credit

Lenders regard you as a smaller risk

Lenders regard you as a bigger risk

More lenders want to do business with you

Fewer lenders want to do business with you

Lenders take less time to assess your application

Lenders take more time to assess your application

Lenders offer you lower interest rates

Lenders offer you higher interest rates

Frequently asked questions

What is the average interest rate on personal loans for single parents?

Like other types of personal loans, the average interest rate for personal loans for single parents changes regularly, as lenders add, remove, and vary their loan offers. The interest rate you’ll receive may depend on a range of different factors, including your loan amount, loan term, security, income, and credit score.

What is a bad credit personal loan?

A bad credit personal loan is a personal loan designed for somebody with a bad credit history. This type of personal loan has higher interest rates than regular personal loans as well as higher fees.

Can you refinance a $5000 personal loan?

Much like home loans, many personal loans can be refinanced. This is where you replace your current personal loan with another personal loan, often from another lender and at a lower interest rate. Switching personal loans may let you enjoy more affordable repayments, or useful features and benefits.

If you have a $5000 personal loan as well as other debts, you may be able to use a debt consolidations personal loan to combine these debts into one, potentially saving you money and simplifying your repayments.

Should I get a fixed or variable personal loan?

Fixed personal loans keep your interest rate the same for the full loan term, while interest rates on variable personal loans may be raised or lowered during your loan term.

A fixed rate personal loan keeps your repayments consistent, which can help keep your budgeting consistent. You won't have to worry about higher repayments if your rates were to rise. However, on a fixed loan you’ll also potentially miss out on more affordable repayments if variable rates were to fall.

How much can you borrow with a bad credit personal loan?

Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans, they also get loaned less money. Each lender has its own policies and loan limits, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.

What is an unsecured bad credit personal loan?

A bad credit personal loan is ‘unsecured’ when the borrower doesn’t offer up an asset, such as a car or jewellery, as collateral or security. Lenders generally charge higher interest rates on unsecured loans than secured loans.

What is a personal loan?

A personal loan sits somewhere between a home loan and a credit card loan. Unlike with a credit card, you need to sign a formal contract to access a personal loan. However, the process is easier and faster than taking out a mortgage.

Loan sizes typically range from several hundred dollars to tens of thousands of dollars, while loan terms usually run from one to five years. Personal loans are generally used to consolidate debts, pay emergency bills or fund one-off expenses like holidays.

What do credit scores have to do with personal loan interest rates?

There is a strong link between credit scores and personal loan interest rates because many lenders use credit scores to help decide what interest rates to offer to potential borrowers.

If you have a higher credit score, lenders will probably classify you as a lower-risk borrower. That means they’ll be keen to win your business, so they may offer you a lower interest rate if you apply for a personal loan.

If you have a lower credit score, lenders will probably classify you as a higher-risk borrower. That means they might be concerned about you defaulting on the loan and costing them money. As a result, they might protect themselves by charging you a higher interest rate.

Do student personal loans require security?

While some personal loans can be secured by the value of an asset, such as a car or equity in a property, student personal loans are often unsecured, which typically have higher interest rates.

Some lenders also offer guarantor personal loans to students. These loans have lower interest rates, as a guarantor (usually a relative of the borrower with good credit) will fully or partially guarantee the loan, taking on the financial responsibility if the borrower defaults.

Can I repay a $3000 personal loan early?

If you receive a financial windfall (e.g. tax refund, inheritance, bonus), using some of this money to make extra repayments onto your personal loan or medium amount loan could help reduce the total interest you’re charged on your loan, or help clear your debt ahead of schedule.

Check your loan’s terms and conditions before paying extra onto your loan, as some lenders charge fees for making extra repayments, or early exit fees for clearing your debt ahead of the agreed term.

Can you pay off a quick loan early?

Many lenders will allow you to make extra repayments onto a quick personal loan when you can afford them, or even exit the loan early, which can help reduce the total interest you are charged. Be sure to check your quick loan’s terms and conditions, as some lenders charge early exit fees for paying off a loan ahead of schedule.

Can I get a no credit check personal loan?

Personal loans with no credit checks are available and called ‘payday loans’. These are sometimes used as short-term solutions for cash-strapped Australians. They often carry higher interest rates and fees than regular personal loans, and individuals risk putting themselves into a worsened cycle of debt.

Can I get a bad credit personal loan with a guarantor?

Some lenders will consider personal loan applications from a borrower with bad credit if the borrower has a family member with good credit willing to guarantee the loan (a guarantor).

If the borrower fails to pay back their personal loan, it will be their guarantor’s responsibility to cover the repayments.

How can I get a $3000 loan approved?

Responsible lenders don’t have guaranteed approval for personal loans and medium amount loans, as the lender will want to check that you can afford the loan repayments on your current income without ending up in financial hardship.

Having a good credit score can increase the likelihood of your personal loan application being approved. Bad credit borrowers who opt for a medium amount loan with no credit checks may need to prove they can afford the repayments on their current income. Centrelink payments may not count, so you should check with the lender prior to making an application.

What are the pros and cons of debt consolidation?

In some instances, debt consolidation can help borrowers reduce their repayments or simplify them. For example, someone might take out a $7,000 personal loan at an interest rate of 8 per cent so they can repay an existing $4,000 personal loan at 10 per cent and a $3,000 credit card loan at 20 per cent.

However, debt consolidation can backfire if the borrower spends the extra money instead of using it to repay the new loan.

How can I improve my credit rating/score?

Your credit score will improve if you demonstrate that you’ve become more credit-worthy. You can do that by minimising loan applications, clearing up defaults and paying bills on time.

Another tip is to get the one free credit report you’re entitled to each year – that way, you’ll be able to identify and fix any errors.

If you want to fix an error, the first thing you should do is speak with the credit reporting body, which may take care of the problem or contact credit providers on your behalf.

The next step would be to contact your credit provider. If that doesn’t work, you can refer the matter to the credit provider’s independent dispute resolution scheme, which would be the Australian Financial Complaints Authority (AFCA).

AFCA provides consumers and small businesses with fair, free and independent dispute resolution for financial complaints.

If that doesn’t work, your final options are to contact the Privacy Commissioner and then the Office of the Information Commissioner.

Can I get a personal loan if I receive Centrelink payments?

It is hard, but not impossible, to qualify for a personal loan if you receive Centrelink payments.

Some lenders won’t lend money to people who are on welfare. However, other lenders will simply consider Centrelink payments as another factor to weigh up when they assess a person’s capacity to repay a loan. You should check with any prospective lender about their criteria before making a personal loan application.

Can I get guaranteed approval for a bad credit personal loan?

Few, if any, lenders would be willing to give guaranteed approval for a bad credit personal loan. Borrowers with bad credit histories can have more complicated financial circumstances than other borrowers, so lenders will want time to study your application. 

It’s all about risk. When someone applies for a personal loan, the lender evaluates how likely that borrower would be to repay the money. Lenders are more willing to give personal loans to borrowers with good credit than bad credit because there’s a higher likelihood that the personal loan will be repaid. 

So a borrower with good credit is more likely to have a loan approved and to be approved faster, while a borrower with bad credit is less likely to have a loan approved and, if they are approved, may be approved slower.

Which lenders offer bad credit personal loans?

Several dozen lenders offer bad credit personal loans in Australia. These are generally smaller lenders that aren’t household names.

How are credit ratings/scores calculated?

Different credit reporting bodies may use different formulas to calculate credit scores. However, they use the same type of information: credit history and demographic profile.

They’re likely to look at how many credit applications you’ve made, which lender the applications were for, what purpose they were for, how much they were for and your repayment record. They’ll also look at your age and postcode. They’ll also look to see if you’ve had any bankruptcies or other relevant legal judgements against you.

Your score can change if your demographic profile changes or new information is added to your file (such as a new loan application) or existing information is removed from your file (i.e. because it has reached its expiry date).