Loan facility for physically handicapped person

The National Handicapped Finance and Development Corporation (NHFDC) offers special loan products to cater to the needs of physically-handicapped individuals. The interest rate charged on such loans cannot exceed 8% while the maximum repayment period is 36 months. Physically-handicapped individuals can avail a loan of up to Rs.25 lakh under various schemes offered by NHFDC.

Schemes Offered by NHFDC for Physically Handicapped People

Eligibility Criteria for Availing Loans from NHFDC

The eligibility criteria for availing loans from NHFDC may vary according to the scheme but the generic criteria have been listed below:

• The borrower should be an Indian citizen with a minimum of 40% disability.
• The applicant should be aged between 18 years and 55 years.

• The annual income of the applicant should be at least Rs.1 lakh in urban areas and Rs.80,000 in rural areas.
• The borrowers should not have any outstanding loans in their names and should not be covered under any other financing scheme of the state or central government.
• The applicants should preferably be frequent members of self-help groups such as Thrift and Credit Group.
• Women borrowers will be given preference

Mahila Samriddhi Yojana

Disabled women who are weak economically can take advantage of the Mahila Samriddhi scheme to augment or start any income-generating activity. The loan amount for this scheme will be dispensed through Non-Governmental Organisations (NGOs) and State Channelising Agencies (SCAs).

To be eligible for the scheme, the applicants must be:

• A women Indian citizen with a disability of 40% or more
• Aged between 18 years and 55 years
• Earning at least Rs.1 lakh p.a. in urban areas and Rs.80,000 in rural areas

The features of the Mahila Samriddhi Scheme are given below:

BOI Star Mitra Personal Loan

Apart from the NHFDC, there are many nationalised banks that offer loans for the physically disabled people. Bank of India is one such lender that offers a specialised personal loan scheme for the physically challenged, known as the BOI Star Mitra Personal Loan. This loan will help physically handicapped individuals to function independently. Some of the features of the BOI Star Mitra Personal Loan have been outlined below:

• The loan can be used by physically disabled individuals to purchase durable aids/appliances that will promote their physical and social rehabilitation.
• The loan can be availed by both self-employed and salaried physically handicapped individuals.

• Minors who are physically challenged can also avail the loan through their parents or legal guardians.
• The loan will be of a secured nature and in the form of demand or term loan.
• Borrowers must provide invoice/quotation of the equipment to be purchased, doctor’s certificate stating the need for the equipment, and the stamped receipt after the equipment has been purchased.

How to Obtain Loans for Physically-Handicapped

Physically handicapped people can obtain loans from the NHFDC through the State Channelising Agencies (SCAs), Nationalised Banks or Regional Rural banks (RRBs), and Non-Governmental Organisations (NGOs). The process to apply through these channels have been briefly described below:

• SCAs – The state governments nominate the SCAs who will then extend the loans to the physically disabled people. Borrowers need to submit applications through the SCAs in the prescribed format to avail the loan. The SCAs sanction loans up to Rs.10 lakh while for loans above Rs.10 lakh, sanctions are done by the NHFDC.
• Nationalised Banks and RRBs – Loans to the disabled people are extended by the NHFDC through nationalised banks and RRBs. The nationalised banks that extend the loans are Andhra Bank, Punjab National Bank, and IDBI Bank while only RRBs in the state of Uttar Pradesh, Haryana, Uttaranchal, and Gujarat dispense loans to the physically handicapped.

• NGOs – Poor borrowers can avail the microfinancing scheme from NHFDC under which NGOs will approach the respective SCAs and submit their application in the prescribed format along with necessary documents and details.

FAQs on Loans for the Physically-Handicapped

Answer: Unfortunately, no. For you to avail a loan for your income generating project, you need to be residing at the same place as your activity.

Answer: The loan availed from NHFDC can be used for any activity that generates income and is economically viable. Some of the income generating activities are artisan activities, agriculture and allied activities, small business, cottage industry, etc.

Answer: Apart from NGOs and SCAs, loans from the NHFDC can be availed from the banks, Oriental Bank of Commerce and Punjab & Sind Bank.

Answer: Yes, mentally retarded individuals are eligible to get a loan from NHFDC. Such loans are extended through the spouse, parents, or legal guardian of the mentally disabled individual.

Answer: If you have any queries or grievances, you can get in touch with the state channelizing agencies (SCAs) in your state or union territory. You can also contact the NHFDC directly on their helpline numbers – 0129 2280214/ 2280335/ 2287513 or email them at nhfdc@nda.vsnl.net.in.