As much as we know about the expenses to adopt a child, we know very little how families raise resources to finance adoption expenses. There are families that save, sell products, mortgage jewelry and simply drop out because they cannot afford. How about borrowing money from a bank to finance adoptions? Would that ever be a possibility? Hold your breath and read on….
JP Morgan Chase & Co in the United States of America is the first financial institution planning to give home equity loans to finance adoptions. To qualify, one must have 10% of equity built.
Personally I am excited about this news with caution. This could be easily implemented in India with the banking industry being the robust one. When a third party gets involved in financing your expenses, chances of abuse decreases. For example, when a bank makes the payment directly to the adoption agency, they (bank) require certain compliance from an agency such as charging within the government stipulated expense limit and giving a legitimate receipt for such payments etc. This could also end the culture of burdening the adoptive parents in the name of “donations” where the agencies are alleged to be charging an arm and a leg.
Caution part of my excitement stems from the fear that it might make adoptions more expensive in countries where there no government stipulated adoption expense limits. For example in the United States there are no government imposed maximum limits but allow the market dynamics to determine the costs.
In India, such loan structure (home equity loans) cannot help the poor, as many in the low socio-economic strata don’t own a house to build equity. So it is with creativity that this needs to be done where the opportunity to adopt a child is equal to every citizen.
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Ruby
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