Finance associated with medical costs comes in two quite different forms, and the distinction determines what you should be asking for. Patient finance funds a procedure for the person having it. Practice finance funds equipment, rooms or working capital for a healthcare professional’s business.
Before applying to any provider trading under a name of this kind, confirm which of the two it offers and, critically, which registered credit provider stands behind the agreement.
Eligibility Requirements at a Glance
For patient finance, the criteria are those of ordinary consumer credit.
- Be 18 years or older with a valid South African ID
- Have a regular, verifiable income paid into a bank account in your own name
- Hold a bank account able to carry an authenticated debit order
- Not be under debt review, sequestration or administration
- Have a quotation from the practice or hospital for the procedure being funded
- Have a contactable cellphone number and a verifiable address
Income and Affordability Requirements
Medical urgency does not change the affordability rules, and no lawful lender may waive them.
The Act requires an affordability assessment before credit is granted: the provider must verify gross income, subtract statutory deductions such as PAYE and UIF, subtract the minimum living expenses prescribed in the affordability assessment regulations, and subtract existing monthly debt repayments. Lending without that assessment is reckless lending and is prohibited.
Before borrowing for a procedure, exhaust the cheaper routes. Check what your medical scheme covers, including the prescribed minimum benefits that schemes are legally required to cover for defined conditions. Ask the practice or hospital about its own payment plan — many offer instalments that cost nothing in interest. Ask about the difference between the scheme tariff and the practitioner’s fee, and whether it can be reduced.
Public sector care is available and is means-tested, and for some conditions the waiting time is shorter than people assume. It is worth a phone call before taking on credit.
Get a written quotation covering the whole episode — surgeon, anaesthetist, hospital, and follow-up. Borrowing against a partial quote leaves you short at the worst possible moment.
Credit and Financial Requirements
A credit bureau check forms part of any lawful application.
The agreement is regulated by the National Credit Act 34 of 2005 and the provider must be registered with the National Credit Regulator (NCR). Verify registration free of charge at ncr.org.za before you sign.
For practice finance, the business is assessed rather than the individual: CIPC registration, a business bank account, tax compliance, financial statements and a trading record. Equipment is normally funded through asset finance secured on the equipment, which is cheaper than an unsecured loan.
Whichever applies, ask for the full name of the credit provider and verify it on the NCR register before sharing documents. Be particularly cautious where you were referred by a practice — a referral is not a verification.
If you dispute a medical account rather than lacking the means to pay it, take that up with the practice or your scheme, and if unresolved with the Council for Medical Schemes, before borrowing to settle it.
Documents and Verification Required
The pack depends on which kind of finance you need.
- South African ID document or smart card
- Latest payslip, or the latest three where income varies
- Latest three months’ bank statements
- Proof of residence not older than three months
- A written quotation from the practice or hospital covering the full procedure
- Medical scheme membership details and the scheme’s response, where applicable
- For practice finance: CIPC documents, business bank statements, financial statements and a SARS tax compliance status PIN
How to Apply and Improve Approval Readiness
Confirm what the provider actually offers, then work through the cheaper alternatives before signing anything.
- Ask the medical scheme what it covers, including prescribed minimum benefits
- Ask the practice or hospital about an interest-free payment plan
- Get a written quotation covering the whole episode of care, not one component
- Ask for the credit provider’s name and NCR registration number, and verify it
- Ask for the total repayable amount in writing before agreeing
- For equipment, price asset finance rather than an unsecured loan
Frequently Asked Questions
Will a lender approve a loan faster because the procedure is urgent?
Urgency does not remove the affordability assessment, which is a legal requirement. A provider that skips it is lending unlawfully.
What are prescribed minimum benefits?
A set of conditions and treatments that medical schemes are legally required to cover. Ask your scheme whether your condition qualifies before assuming you must pay privately.
Is practice finance assessed differently from patient finance?
Yes. Practice finance is business lending assessed on the entity’s trading record; patient finance is consumer credit assessed on your personal income.
Who do I complain to about a medical scheme decision?
The Council for Medical Schemes handles complaints about medical schemes. Raise the matter with the scheme first, in writing.
Product ranges, scheme benefits and lending criteria change. Confirm what the provider offers and which registered entity provides the credit, and check your cover directly with your medical scheme.