How the World’s Largest Public Health Cover Cut Loan Defaults
Featuring Prasanna Tantri
India’s flagship health insurance scheme helped low-income households improve their loan performance, finds a study.
February 16, 2026
Display Settings
Display mode
Text size
Listen to this article
Prasanna Tantri
Associate Professor of Finance and the Executive Director at ISB’s Centre for Analytical Finance (CAF). His research focuses on banking, financial inclusion, financial contagion, regulation, and the intersection of politics and finance.
Key Takeaways
- PMJAY, the world’s most extensive publicly funded health insurance program, provides ₹500,000 in annual coverage per family.
- In districts implementing the scheme, household health insurance coverage increased, and out-of-pocket medical expenses decreased.
- By covering a portion of healthcare costs and reducing dependence on high-interest informal loans, PMJAY has helped families manage debt and restore financial stability.