Article

Loans for Disabled
December 12 , 2012

The central government offers subsidized loans to persons with disabilities through schemes implemented by National Handicapped Finance and Development Corporation (NHFDC) under Ministry of Social Justice & Empowerment. Following is the summary of the main schemes and facilities available:

1. Loan for Educational/Training course

Maximum Loan: Rs 10 lakhs for studies in India

                             Rs 20 lakhs for studies abroad

Rate of interest: 4% pa

                             3.5% pa for women

Grant of loan is subject to repayment capacity and it should be borrowed jointly by disabled student and parent. Loan should be repaid in 7 years after starting repayment and repayment starts within 6 months of finishing course or securing employment, whichever happens first.

2. Loans for Income generating activities

i. Small business in Service/Trading sector

Maximum Loan: Rs 3 lakhs for trading activities

                             Rs 5 lakhs for service sector activities

ii. Small industrial unit

Maximum Loan: Rs 25 lakhs

iii. Purchase of vehicle for commercial activity

Maximum Loan: Rs 10 lakhs

iv. Agricultural activity

Maximum Loan: Rs 10 lakhs

v. Self employment among persons with mental retardation, cerebral palsy and autism

Maximum Loan: Rs 10 lakhs

Rate of interest:

Upto Rs 50,000- 5% pa

Upto Rs 5 lakhs- 6% pa

Above Rs 5 lakhs- 8% pa

0.5% rebate for women

3. Financial Assistance for Skill & Entrepreneurial Development

This loan is meant for beneficiaries of NFHDC loan for income generating activities and who are pursuing the activity.

4. Micro Credit Scheme

Maximum Loan: Rs 25,000

Rate of interest: 5% pa

5. Scheme for Parents Association of mentally retarded persons

Maximum Loan: Rs 5 lakhs

6. Scheme for disabled young professional

Maximum Loan: Rs 25 lakhs

Rate of interest:

Upto Rs 50,000- 5% pa

Upto Rs 5 lakhs- 6% pa

Above Rs 5 lakhs- 8% pa

1% rebate for women

Loan is to be repaid within 10 years.

NHFDC is the apex body that functions through SCAs, its counterpart in each state and nationalized banks. For most schemes disability should be more than 40%.

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