The craze for consumer financing has penetrated the medical field as well; at least in India. The tech city of Bangalore has seen the launch of the first of its kind heart surgery loan scheme titled SBI Hrudaya Suraksha scheme. The loan scheme, administered by the State Bank of India (SBI), will target those patients who can’t afford the expensive heart surgery - through loan disbursements of up to 50,000 Indian Rupees (US $1137 approximately). A local cardiac center will carry out the surgeries of patients availing the loan facility. The hospital has agreed to subsidize its 65,000 INR cost for an open-heart surgery to 50,000 INR for these patients.

The annual interest rates, however, are fixed at 8.5% - quite high for the middle class sections of society. Another impediment is the return of loan money within six months which is not possible for most of the patients. The scheme itself is innovative and ground breaking but the modalities and terms and conditions are not reminiscent of an ideal microfinancing for the sick and downtrodden. The most significant pitfall of the scheme is the relatively lower disbursement (50,000 INR) and collaboration with only one hospital. Although it’s a pilot scheme but at least a couple of medical centers could have been included.

A microfinanced medical scheme ideally should have a very low interest rate - say around 5-6% at maximum. Similarly, the period of return should be at least two years. Not to forget the hefty monthly bills of medicine which become an integral part of the patient’s life. All in all, the initiative is commendable but with many flaws.

Other microfinancing organizations should also embark on this medical-financing journey. As more and more microcredit institutions will join, many new ideas and strategies would be devised and implemented. The ultimate beneficiaries will be the patients, indeed.

So is there any Pakistani microcreditor reading who can come up with a more workable idea?

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