Adoption loans, also referred to as baby loans or maternity leave loans, are a type of personal loan typically used to cover financing for adoption and newborn expenses. You can put the money toward medical procedures, baby supplies, childcare costs, legal fees—whatever you need to make sure your bundle of joy gets home safely.
Learn about different types of personal loans and how to choose the one right for you.

The cost of adoption varies widely depending on a few factors, including the location, type of adoption, your individual circumstances, whether you work with an agency or independently, and more. According to the Children’s Bureau, domestic adoption expenses usually range from $30,000-$60,000. And although international adoptions can cost more due to travel and documentation expenses, the estimated expenses for adopting a child from another country range from $20,000-$50,000.

Similar to adoption expenses, the cost of having a baby depends on many factors. Required prenatal care and medications, the type of birth, and your insurance coverage can all impact the total cost. A recent study found the costs associated with pregnancy, delivery, and postpartum care adds up to $18,865 on average.
Need help developing a strategic financial plan for your future family? Check out our 7 Habits You Need to Start Financial Planning article.

Adoption loans, baby loans, maternity leave loans—while they go by a variety of names, they all share the same purpose. They allow prospective parents to quickly and easily finance the expenses associated with bringing your new baby into the world without impacting your savings. And with fixed rates and funding in as little as 24 hours*, you can provide for all your child’s needs with peace of mind that your monthly payment will always stay the same.
Like any other type of loan, the biggest potential con is taking on debt without a repayment plan in place. Missing or late payments can drop your credit score rapidly and cause you to acquire more debt. Before applying for any financial product, it’s wise to assess your financial situation and determine how much you can borrow safely.

If prospective parents aren’t interested in an adoption loan or baby loan, building up savings over time (on their own, or by reaching out to family for assistance) can be a smart way to cover newborn expenses while avoiding paying interest. Some employers may offer financial assistance or reimbursement programs that help with adoption costs, saving prospective parents from paying the full
expense. It may also be worthwhile to research adoption-related charities or foundations that offer grants to see if you’re eligible.
If an adoption loan could still be the right choice for you, here’s the full scoop on personal loans.

The main difference between an adoption loan and adoption grant is the need for repayment. Adoption loans, like other personal loans, come with interest rates and are repaid in fixed monthly installments. While adoption loans are provided by lenders, adoption grants are typically given to prospective parents through adoption-related charities or foundations. Like adoption loans, adoption grants are provided as a one-time lump-sum payment, but they do not have to be repaid.