Medical loan provider Arogya plans to raise ₹50 crore

Abhishek Law Kolkata | Updated on March 12, 2018

Aims to be ₹1,000-cr company by FY2020

Arogya Finance, which provides medical loans without collateral, is looking at a more than six-fold increase in disbursals to ₹50 crore by FY17. Disbursals currently stand at ₹8 crore (approximate), a year.

The increased disbursals will be backed by a new line of funds for the Mumbai-headquartered company, along with expansion in operations.

Fund raise

According to Jose Peter, Chief Executive Officer of Arogya Finance, the company is already looking to raise money – through debt funding – from a “large North India-based NBFC”.

The amount is likely to be ₹50 crore. This apart, the company might also explore the probability of bringing in investors – to the tune of approximately ₹13 crore ($2 million).

It is open to other funding options such as soft loans from agencies, and from social venture funds.

“Disbursals will go up once we get the ₹50-crore debt funding. If things go well, funding won’t be a problem,” he told BusinessLine.


By FY20, the target is to be a ₹1,000-crore company with disbursals to over 2 lakh people, and pan-India operations, said Peter. It is eyeing expansion in Punjab, where it has just begun operations. This apart, entering Haryana and Telangana is also on the cards.

So far, the two-year-old Arogya Finance has disbursed loans to around 2,000 people across 10 States that include West Bengal, Odisha, Jharkhand, Bihar, Maharashtra, Gujarat, Delhi-NCR, Karnataka, Kerala and Tamil Nadu.

Prepaid Card

The NBFC has come up with a card – Arogya Card – that allows holders to get a pre-approved loan of up to ₹2 lakh. The card is valid for a year and renewable thereafter.

So far, less than 1,000-odd cards have been issued. The ultimate aim, according to Peter, is to issue nearly 18 lakh cards by FY20. Arogya Finance has a 96 per cent recovery rate with annual interest varying between 12 and 15 per cent.

The NBFC was formed to provide a new interface between healthcare providers and those who cannot afford these services. It also aims to combat problems faced by the needy. 

It offers loans to those outside the formal sector and lack documents like proof of salary or collateral.

Published on December 20, 2015

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like