In the context of emerging global economic momentum countries across the world have been experiencing the appearance of a number of potential financing options for health care both within and outside the health sector. This study looks at the possibility of microfinance as an alternative option for financing health care in Kerala, by focusing on one semi-urban area and one rural area, each from two districts. The study observes that in order to obviate the difficulties (like inability to repay the loans regularly) experienced by the extremely poor among the members of microfinance institutions, it is necessary to make the terms and conditions of savings and borrowings to be poor-friendly than they are at present. Secondly, in order to make microfinance more feasible for meeting emergency health care requirements, setting up of a welfare fund at the SHG level is appreciable. Although income is a key constraint to participation by the poorest of the poor, they are often willing to participate if their contributions are supplemented by a government subsidy and an access to quality. Further, with the number of SHGs throughout Kerala, community financing as well as insurance coverage are not that much widespread. A collective approach with mutual coordination of the government and self-help groups can definitely overcome this inadequacy and limitation. Above all, an inter-sectoral coordination, by keeping microfinance mechanism as the pivot or by incorporating microfinance mechanism can always ensure an easy, appropriate, affordable and effective service delivery at the doorstep of the people