Jose Peter, Co-founder & CEO, Arogya Finance
is a Chartered Accountant with decades of experience in finance and business. Jose has served on the board of several companies, including multinational joint ventures and Tata group companies and has been involved in their finance, strategy, mergers and acquisitions, divestment, capital raising, and business restructuring. He has also served as executive committee member of FIDC (Finance Industries Development Council), an apex organisation for financial service companies. Prior to promoting ArogyaFinance, Jose has worked in Tata Motors Finance, Ion Exchange, and Tata Motors, and has played a major role in the turn around and financial restructuring of the erstwhile Tata Finance Limited.
is a social healthcare venture, which offers medical loans to the traditionally un-banked, using innovative risk assessment tools that allow them to finance people outside the formal banking system. The business model is structured such that it directly pays the medical bills of an individual to the hospital or the healthcare service provider. Arogya Finance has partnered with hospitals and other healthcare providers to ensure that people can access medical loans for themselves and their families. Arogya Finance has developed a path-breaking proprietary approach, which enables it to lend to even those who fall outside the formal sector.
Replying to Yash Ved
, Jose Peter says "We just finalized a deal for a considerable amount of debt and are looking to raise $2mn in terms of equity to complement that. For equity, we are in conversation with a few investors and some are at an advanced stage."
What outlook do you see for NBFC sector?
The general outlook is becoming increasingly competitive and those who have access to cheaper sources of funds or have innovative offerings for their customers will only flourish. We are in a sweet spot with regard to competition, and are coming up with highly innovative offerings for the healthcare space.
Due to the innovative approach, which includes the use of a psychometric test as a risk assessment tool, enabling evaluation of the credit risk profile of people outside the formal banking system, Arogya Finance has been recognized as one of India’s most unique social innovators by
Brief on the launch of pre-approved medical loan card?
Innovations in Healthcare, an organization funded by McKinsey, USAID, and the World Economic Forum and
Social Entrepreneurship Accelerator at Duke (SEAD).
The pre-approved medical loan “Arogya Card” was launched in June 2015. The Arogya Card has a pre-approved medical loan of upto Rs. 2 lakh for cardholders and their family members. The card is designed with a vision to ease the medical finance burden for the weaker sections, which pushes them into poverty. Unexpected healthcare expenses result in over forty million people being pushed into poverty every year.
With the Arogya Card, pre-approved medical loan is now available at the right time and place of need to those who lack collateral or formal income proof, i.e., the traditionally un-banked. Through this effort, we are creating a lifeline for millions of people in India facing poverty due to high expenses incurred on healthcare. The borrowers can repay the loans in easy monthly installments of upto 36 months.
Are you in talks with investors for fund raising plans?
We just finalized a deal for a considerable amount of debt and are looking to raise $2M in equity to complement that. For the equity, we are in conversation with a few investors, and some of these are at an advanced stage.
Who are the partners?
We have four industry partnerships in place, one of which is in progress. The companies include a global medical device company, an Indian pharma major, a hearing aid chain, an ayurvedic cardiac care chain, and a global pharma company.0
In addition, we have 48 hospital partners with 248 healthcare centers.
What is your loan book?
We have lent over Rs. 8 crores and are poised for accelerated growth across the country.
What is your debt to equity ratio?
Our debt to equity ratio is 3:1
What is your target growth for the current fiscal?
Our target is to issue 100000 pre-approved Arogya Cards during the year.