Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP® Joel Ohman

UPDATED: Feb 25, 2021

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  • Having a child is expensive; there are a number of different costs associated with having a baby, including doctor’s visits, clothing, care items, and more
  • Getting a birth loan to help you cover the costs of having a baby?
  • New baby loans can give you the financial aid you need to cover expensive medical costs, diapers, and so much more

Bringing a new life into the world is a wonderful miracle, but it is a miracle that comes with considerable costs. Many new parents don’t realize the economic costs of having a baby.

Childbirth alone typically costs close to $10,000. You also have to think about all of the doctor’s visits, clothes, diapers, food, toys, strollers, cribs, and other items you will need to purchase as well.

Luckily, new parents can get baby loans to help them cover the costs of everything associated with their beautiful new child.

New baby loans are a type of personal loan designed with new parents in mind.

Having a baby is expensive. If you’re feeling the financial pinch, before or after having a baby, then a baby loan may be the right financial choice for you.

If you’re ready to compare interest rates on baby loans in your area, enter your ZIP code above.

What is a new baby loan?

Birth loans, or baby loans as they are sometimes referred to, are personal loans designed for new parents.

There are auto loans, home loans, student loans, and all types of other loans available. Why shouldn’t there be a loan option for new parents?

Baby loans can help new parents save money when compared to using a credit card for the same costs. You can often secure a lower interest rate on a baby loan than you can on your average credit card.

You will need to qualify for a baby loan with a lender. There are specific baby loan lenders, and there are also general lenders like your bank or credit union where you can go to apply for a baby loan.

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How do I get a new baby loan?

You get a birth loan by applying with a lender. There are many baby loan lenders who will allow you to submit a loan application online. Otherwise, you will have to go into your bank or credit union and fill out a baby loan application in person.

This application will require your personal and financial information so that the lender can make a decision about how much money you will qualify for and what your interest rate will be.

How much money can I get in my new baby loan?

How much your baby loan is approved for will depend largely on your income, credit score, and current assets.

Lenders are not going to give you massive amounts of money that you cannot afford to pay back. They will look closely at your income and determine how much money you can realistically afford to borrow.

The birth loan you are offered will be customized based on your financial and personal information. While we can’t give you an exact figure, we can tell you that many people can qualify for baby loans up to $20,000.

What personal information will I need to include in my baby loan application?

Lenders often want to see a number of different personal and financial pieces of information in order to process your loan request.

You can expect to share your current employment details, possibly a past employer as well, pay stubs, financial statements, your credit score, and potentially more, depending on the lender.

If your credit score is too low, your lender may require you to have a cosigner as well before they give you a new baby loan. A cosigner mitigates the risk the lender is taking by agreeing to pay your debts should you fail to make your loan payments.

If you want more information about personal loans, check out this helpful resource from Experian.

Apply for a Loan

Enter your ZIP code below to view lenders with cheap loan rates.

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Is there anything else I need to know about new baby loans?

Baby loan servicing is often done by specialized lenders. You likely won’t have a previous relationship with these lenders like you would with your bank or credit union.

When opening any line of credit, it is important to completely understand the terms of your loan agreement.

Be sure you read through your baby loan agreement carefully, and do not sign the loan agreement until you completely understand what you are agreeing to.

Does your loan have a penalty for prepayment? Many lenders stick this clause into their loan agreements. This means you will be penalized for paying your loan off early. Why do they do this? It is an effort to ensure they maximize the interest payments they receive from you.

If you take the time to fully read and understand your baby loan agreement, you can ask your lender to strike a ridiculous fee like a prepayment penalty from your loan agreement. You should never be charged for paying early.

Other hidden fees that you may want to look out for are loan processing fees. These are charges for nothing more than creating a loan.

If you read through your agreement and understand that this is being charged to you, you can ask your lender to remove this fee or else take your business elsewhere.

New Baby Loans: The Bottom Line

The cost of having a baby and raising them in their first year of life is very high. Parents do not need to struggle. New baby loans exist to help parents cover the high costs of childbirth and early development.

Don’t wait until you are overwhelmed financially to seek help in the form of a loan. If you’re ready to apply for a birth loan, enter your ZIP code below to compare baby loans in your area.