Divyangjan Swavalamban Yojna

The eligibility criteria for the Banks and Financial Institutions to be enrolled under the Credit Guarantee Scheme or CGS are as follows:

• The Banks and Financial Institutions must be the Member Lending Institution (MLI) of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
• The Banks and Financial Institutions should have accomplished an Agreement with the National Divyangjan Finance and Development Corporation (NDFDC).

Eligibility for Beneficiaries opting for the Refinance Scheme

The eligibility criteria for the beneficiaries (with any sort of disability) opting for the Refinance Scheme can be summed up as follows:

• For the purpose of self-employment:
  • Any citizen of India with a benchmark disability of 40% or higher
  • Age of the beneficiary should be 18 years or higher
• For the purpose of education:
  • Any citizen of India with a benchmark disability of 40% or higher

Eligibility for the purpose of taking Loan

The eligibility criteria for the purpose of taking the loan are as follows:

• Business activity: If a loan is taken for a business activity, the proposed activity must be eligible under the Credit Guarantee Scheme or CGS.
• Education loan: The eligibility criteria for an education loan will be as per the policy or norms of the National Divyangja Finance and Development Corporation (NDFDC) Education Loan Scheme.

Limit of Loan

• Loan taken for self-employment purpose: Rs.50 lakh
• Loan taken for education purpose: Applicable as per the policy or norms of the National Divyangjan Finance and Development Corporation (NDFDC) at the time when the application for the loan is processed.

Rate of Interest

The loans can be taken for either self-employment activities or for education purpose. The rate of interest for both the cases are listed below:

• Self-employment activities:

Rate of interest chargeable for self-employment purpose (for Persons with disabilities / Divyangjan)

Note: A rebate of 1% will be allowed on the applicable interest rate to women with disabilities/ persons with disabilities other than Orthopaedically Handicapped (OH) in loans up to Rs.50,000 and the rebate will be borne by NDFDC.

• Education purpose:

Note: No rebate or concession in rate of interest is allowed for loans for higher education under the scheme. 

• For Home loan purposes: 

Period for Repayment

The period for repayment are as follows:

• Repayment period for loans taken for self-employment purpose: The period of repayment will be according to the appraisal of the individual proposal made by the lending Banks and Financial institutions, must be acceptable under the Credit Guarantee Scheme or CGS.
• The repayment period generally does not exceed 10 years, including any moratorium period, as per NDFDC guidelines.
• Repayment period for loans taken for education purpose: Applicable as per the policy or norms of the National Divyangjan Finance and Development Corporation (NDFDC) at the time when the application for the loan is processed.

Security

• Security for self-employment activities: The National Divyangjan Finance and Development Corporation (NDFDC) will not take any security from the banks and financial institutions for the provision of refinancing under the Credit Guarantee Scheme (CGS).
• Security for education purpose: The National Divyangjan Finance and Development Corporation (NDFDC) will not take any security from the, banks or other institutions for offering refinance under the Credit Guarantee Scheme (CGS). However, lending banks are required to abide by the norms that are recommended by the model scheme of the Indian Bankers Association (IBA). The institutions can also resort to their own norms while issuing loans to beneficiaries.

Patterns of Refinancing

100% refinance of their share will be provided by the National Divyangjan Finance and Development Corporation (NDFDC) to the lending banks and other institutions under the scheme.

Liquidated Damages of Defaulted Payments

Any defaults made while repaying the principal along with interest of the National Divyangjan Finance and Development Corporation (NDFDC) dues might be attracting liquidated damages at 2% p.a. The liquidated damage will be counted in addition to the regular rate of interest.

Penal Interest

The loan amount refinanced by National Divyangjan Finance and Development Corporation (NDFDC) must be disbursed by the lending financial institutions to the beneficiaries within 90 days from the date of receiving the funds from NDFDC. An interest of 3% p.a. will be charged in addition to the normal rate of interest on the unutilised amount for the next 90 days. Following that, the amount which is not disbursed has to be refunded to the National Divyangjan Finance and Development Corporation and additional penal interest of 2% will be charged till the date of refund.

Incentives to Lending Banks for Good Recovery

The lending banks shall be will be eligible to receive an amount which is equal to 0.50% of the repayment that has been made by them in the past financial year, if they are able to fulfil the criteria which are prescribed by the National Divyangjan Finance and Development Corporation (NDFDC).

The eligibility criteria are as follows:

• At least 95% of the dues payable to the National Divyangjan Finance and Development Corporation (NDFDC) should have been repaid by the lending banks by 31 March of the past financial year.
• The recovery percentage of the financial institutions providing loan should have improved by at least 20% as compared to that of the past financial year.

Either of the conditions mentioned above has to be fulfilled by an institution in order to be eligible for the incentives.