Doctors turn bankers, give loans for new clinics

Doctors turn bankers, give loans for new clinics
EXPRESS NEWS SERVICE

VADODARA, JULY 10: Doctors have turned bankers in Vadodara. They will pool money to extend loans to young practitioners to set up their own clinics.

On Sunday the unique body, the IMA Vadodara Co-operative Credit Society Ltd was inaugurated. Already, the novel experiment looks set to go places.

Honorary general secretary of Indian Medical Association Dr Prem Aggarwal told The Indian Express that the experiment would be replicated in other cities of India. ``It used to be a mission, now it is a service industry. You need easy loans to further the fraternity's interests,'' he said.

The cooperative society is supposed to be the answer to the frustrating experiences doctors undergo while seeking loans from nationalised banks. ``This, when doctors are reputed to be prompt in repayment of loans,'' said Dr V.C. Patel, a Padmashree award winner and former President of IMA. Patel is one of the moving spirits behind the experiment.

New equipment is very costly and young graduates will not be able to go far if they did not receive any assistance from the fraternity, he said, adding that it is only natural that the cooperative society came up in Vadodara, where Asia's oldest cooperative bank -- Anyonya Bank -- came up as far back as 1903.

President of IMA, Vadodara, Dr Chetan Patel said, ``It is the demand of the time. Senior doctors will deposit their excess funds with us. The arrangement will help in spreading the excess money equally among the beginners without taking anybody's obligation.''

In fact, IMA Vadodara toyed with the idea of starting a bank but found it difficult to meet the requirements. ``If the response is good even that reality may not be far off,'' said an IMA member. After establishing itself, the society may also go for extending loans to people other than doctors.

``When I graduated, it was difficult to get a loan of even Rs 30,000. The cost to meet the initial requirements runs into several lakhs these days. Some banks insist on borrowers proving their credentials. How can a young doctor prove his worth before starting his practice?'' an IMA member said.

Even graduates and post-graduate students can become members of the society. A member has to buy a minimum 10 shares of Rs 100 each. All it costs one to become a member is Rs 1,500. The society already has 200 members. More will join, as IMA had stopped accepting deposits after the initial money to register a cooperative bank was raised.

The idea was conceived a year ago during V C Patel's tenure as IMA president. ``It has not been all that easy to get the society registered. More so because a majority of the 400-odd registered societies exist only on paper with their boards of directors missing,'' a member said.

R.B. Shah became the first medical practitioner to avail of the loan facility from the society. He was issued a cheque to buy a computer. Established practitioners will also get loans to buy new equipment or to renovate their clinics. However, a junior applicant will get the priority over his seasoned counterpart.

Vice-president of IMA's Gujarat branch Dr Mayank Bhatt said a similar society would soon be started in Ahmedabad.