Everybody shares equal right and nobody is left out when it comes to getting government help and resources. In a quest to help out the physically challenged persons lead their life happily, many banks and government entities are offering special loans. The main idea is to provide the necessary financial help to such people so that they can live their life with dignity without being dependent on others financially. These loans are very easy to get with minimal paperwork and effort.
NHFDC’s loan schemes for physically handicapped persons
NHFDC or National Handicapped Finance and Development Corporation is offering a wide range of security-free low-interest loans for the education and empowerment of individuals with physical disabilities. Their main target is to open up self-employment opportunities for such individuals by offering them financial support to set up their own business. Here are the various loan schemes offered by this organisation:
- Micro Financing scheme for the physically-disabled persons
- Scheme for vocational education and training for PwDs.
- Scheme for financial assistance for skill & entrepreneurial development.
- Scheme of financing construction of commercial/business premises for starting self employment activity to PwDs.
- Scheme of financing assistive devices to enhance the employability or increased opportunity of self employment of persons with disability.
- Scheme for young professional.
Maximum loan amount offered under the NHFDC schemes
Here are the maximum loan amount offered by NHFDC for the upliftment of the physically-challenged individuals:
- For establishing a small business in the Service or Trading sector a loan amount of up to Rs.3 lakh is offered. (In case of transport activity, loan amount of up to Rs.5 lakh is sanctioned)
- In order to set up a small industrial unit, a loan amount of Rs.5 lakh is offered.
- For providing education or professional training to the disabled individuals, up to Rs.10 lakh amount is provided. (For studying in India it is Rs.10 lakh and for studying in abroad it is Rs.20 lakh).
- For financing agricultural activities, loans of up to Rs.5 lakh is offered.
- Persons with cerebral palsy, mental retardation and autism are given up to Rs.3 lakh for self-employment purpose.
Particulars of the loan facilities offered by NHFDC
| Scheme | Purpose | Loan Quantum | Eligibility | Rate of Interest | Tenure | Rebate |
| 1. Micro Financing Scheme | To aid disabled individuals from weaker sections in income generating activities. | No maximum amount if implemented through SCA Up to Rs. 10 lakh in case of loan to NGO | 1. Indian citizens above 18 years with more than 40% disability 2.Preferably be a member of Thrift and Credit Group. 3. Relevant education, qualification and experience | 5% p.a. | 3 years with quarterly repayment facility | 1% p.a rebate on the interest rate |
| 2. Scheme for vocational education and training | To offer financial support to PwD’s to get vocational education and training | Up to Rs. 2 lakh | 1. Indian citizens above 18 years with more than 40% disability 2.Relevant education, qualification and experience 3.Other criteria as per the norm and policy of NHFDC Education loan | As per the NHFDC education loan scheme | Up to 7 years from the date of commencement | Nil |
| 3. Scheme for financial assistance for skill & entrepreneurial development | To provide training to PwDs to make them self-dependent through proper technical training in technical and traditional occupations | 100% of the total recurring cost of the training programme | 1.Indian citizens within the age-group of 15 to 50 years 2.Should fulfill all other applicable criteria for NHFDC loans | — | Based on the duration of the training. | Nil |
| 4. Scheme of financing construction of commercial/business premises for starting self employment activity to PwDs. | To help the poor PwDs for construction of Business premises to start self-employment activities | Up to Rs. 3 lakh | 1. Indian citizens above 18 years with more than 40% disability 2. Must be eligible for all the criteria mandated by NHFDC under self-employment loan schemes. | 5% for an amount up to Rs.50,000 6% for an amount more than Rs.50,000 up to Rs.3 lakh. | 10 years from the date of commencement | Nil |
| 5. Scheme of financing assistive devices to enhance the employability or increased opportunity of self employment of persons with disability. | To provide finance to the needy PwDs for purchasing assistive devices to improve chances of self-employment | Up to Rs. 5 lakh | 1. Indian citizens above 18 years with more than 40% disability 2. Should be employed with a renowned organisation or must have the confirmed appointment letter. | 5% for an amount up to Rs.50,000 6% for an amount more than Rs.50,000 up to Rs.5 lakh. | Within 5 years from the time of commencement | Nil |
| 8. Scheme for young professional | To provide loan to physically-challenged individuals who are unemployed in spite of being professionally educated | Up to Rs. 25 lakh | 1. Indian citizens above 18 years with more than 40% disability 2. Should have a professional degree from recognised educational institute/ University | Minimum 5% p.a. to maximum 8% p.a based on the loan amount | Within 10 years of borrowing the amount | 1% p.a rebate on the interest rate |
Best financed NHFDC loan-Scheme for Young Professional (up to 25 lakh)
The ‘Scheme for Young Professional’ is a special loan scheme from NHFDC which is dedicated to physically-challenged individuals who are unemployed in spite of being professionally educated. NHFDC has come up with this scheme for instilling self-confidence among them and lift them to the main strata of life. Under this scheme the physically-disabled individuals can avail the highest amount of loan to start of their own self-employment venture. Here are the details of this most sought after loan:
Eligibility criteria for the loan
In order to be eligible for the physically disabled loan, the applicant has to meet the below-mentioned criteria:
- The applicant should be a citizen of India.
- He/she should fall within the age range of 18 to 45 years to avail the loan.
- The individual must have a minimum of 40% physical disability.
- He/she needs to have a professional degree from a recognised educational institute or university.
- The proposed activity is mandated to be directly related to the professional qualification of the applicant.
- The loan should be sought for conducting a business activity which is eligible under CGS.
- The eligible applicants will get loan for varied professions and technically feasible projects under this scheme.
- Applicants who have already opt for NHFDC education loan are eligible for the self-employment loan providing that the total amount of both the loan should not be more than Rs.25 lakh for each beneficiary.
Margin of the loan
The eligible applicants will receive a maximum of Rs.25 lakh under this loan.
Rate of interest
The rate of interest for this special loan under NHFDC is low compared to other loans. The interest rates applicable to the general borrowers are as follows:
- 5% p.a. for up to Rs.50,000.
- 6% p.a. for an amount more than Rs.50,000 to maximum Rs.5 lakh.
- 7% p.a. for an amount higher than Rs.5 lakh to maximum Rs.15 lakh.
- 8% p.a. for an amount more than Rs.15 lakh to maximum Rs.25 lakh.
Rate of interest for women
A special 1% rebate on the interest of the loan is offered to disabled women in this NHFDC self-employment scheme. This rebate is offered to the women applicants under the Mahila Samridhi Yojana. The rate of interest that is applicable for the women beneficiaries covered under this scheme are as follows:
- 4% p.a. for up to Rs.50,000.
- 5% p.a. for an amount more than Rs.50,000 to maximum Rs.5 lakh.
- 6% p.a. for an amount higher than Rs.5 lakh to maximum Rs.15 lakh.
- 7% p.a. for an amount more than Rs.15 lakh to maximum Rs.25 lakh.
Discount on the loan
- An annual 1% discount on the interest rate of the loan will be given to the young physically-disabled women applicants.
- Under the VH/HH/MR category, a special discount of 0.5% is offered for the PWDs (Persons with Disabilities).
Tenure of the loan
NHFDC provides a long duration to the borrowers for the repayment of the loan. An individual can repay his or her loan within 10 years of borrowing it. This tenure also comprises of the moratorium period.
Security requirement
To avail a loan under this loan scheme from NHFDC, the borrowers needn’t give any kind of security or collateral.
BOI Star Mitra Personal Loan
BOI has come up with this special loan for the physically-handicapped person to bring them back in the normal flow of life. The bank is targeting to provide all the financial help to such people so that they can function independently. The bank expects the applicant to use the loan amount in purchasing high-quality instruments or appliances which would help them to manage their lives in a better way. The insurance and processing charges on these loans are waived off.
Eligibility criteria for the loan
- The applicant needs to be an Indian citizen in order to get the eligibility for the loan.
- Applicants having 40% or more disability can only apply for it.
- It will be offered to salaried or self-employed individuals only.
- Physically-handicapped minors can apply for it through their parents or legal guardian’s monetary assistance.
- Loan amount eligibility– The loan amount will be subjected to the following loan criteria:
- Salaried persons are eligible to get at 10 times of their net salary as a loan. Self-employed individuals or professionals will get 50% of their net annual income as mentioned in their recent updated ITR (Income Tax Return).
- The minimum net take-home salary of the applicant should be 40% after getting this loan. For minors, the eligibility will be decided on the basis of the income of the parents or legal guardians.
Margin of the loan
The applicant can get up to 1 lakh under this loan. No minimum loan is stipulated under this loan.
Tenure of the loan
This loan can be availed for a duration of 1 year (12 months) to 5 years (60 months) based on the convenience and preference of the borrowers. The tenure will start after one month of the full disbursement of the loan or after three months of complete disbursement, whichever tenure come first will be considered.
Security requirement
The bank will ask for the hypothecation of the aid or equipment that is purchased by the borrower using the funds provided by the bank.
Other applicable terms and conditions
BOI has put forward a few terms and conditions which the applicant need to abide by to get the eligibility for the loan. Here are the details of the same:
- While applying for the loan, the applicant has to provide a doctor’s certificate which clearly states the degree of handicap and suggests the requirement of an equipment.
- The bank asks for the quotation or the invoice of the instrument which the borrower is going to buy through bank’s finance.
- After the procurement of the instrument, the borrower needs to submit the stamped receipt of the purchase to the bank.
Procedure for availing these loan facility
In order to avail these special loans for the disabled, an individual need to get in touch with the authorities and meet all their mandated criteria. Once the applicant receives the loan approval, the amount will be disbursed in his or her account.
If you are suffering from physical disability of 40% or above which is hampering your professional productivity, apply for these loans to make your life better with financial independence. Such loan facilities for the physically handicapped persons are easily accessible and are disbursed to the borrower in quick time-span. Since the motto of such loan facility is to empower the disableds, the process is kept simple and hassle-free to facilitate the borrowers.
