Nearly 20% of semi-rural and rural household incomes are spent on medical expenses: PayNearby Survey

Around 20% of the annual income of semi-rural households in India is spent on medical expenses, as indicated by a survey conducted by PayNearby, a Mumbai-based business correspondent company, which offers banking services through small retail outlets.

The survey found that 23% of these households turned to informal loans to cover hospital expenses, while 6% resorted to selling assets to settle their medical bills. Around 53% utilised various forms of savings to address these financial burdens.

“More than 80% of doctors, 75% of dispensaries and 60% of hospitals are concentrated in urban India, leaving marginalised populations in semi-rural and rural areas to fend for themselves,” said Anand Kumar Bajaj, CEO of PayNearby.


Based on responses from over 10,000 retailers across semi-rural and rural India, the survey found that only 25% of the people in these areas have access to modern healthcare within their localities. And only 15% of them confirmed having a doctor's clinic or healthcare facility within a 5 km radius.

Of those surveyed, 92% highlighted the absence of specialist doctors such as cardiologists, gynaecologists or paediatricians in their vicinity, thereby affecting the quality of medical care available.

The survey found a major lack of awareness around insurance in these areas. Of the respondents, 55% had never even heard of medical insurance, while only 32% had opted for insurance at some point. A mere 28% possessed health insurance for themselves or their families.

The survey also explored the respondents’ inclination for online medicine purchases and teleconsultation. Approximately 35% expressed interest in buying medicines online, while 32% favoured teleconsultations.

“While scaling infrastructure takes time, leveraging technology for distribution breakthroughs is crucial to reach a wider audience. Reliable tele-consultation platforms and user-friendly online pharmacy modules can contribute significantly,” Bajaj was quoted as saying, in the report.