Business Loans for Disabled People

Disabled people, more often named as differently-abled people are entitled to enjoy all of the government rights and services as other Indian citizens do. The government has largely initiated offering various business loan schemes to help these differently-abled people start their own ventures and be self-sufficient and independent. The below-mentioned is one of the most important loan schemes under the National Handicapped Finance and Development Corporation (NHFDC) for disabled persons.

Loan Schemes for Differently-abled People under NHFDC

Interest Rates offered under NHFDC – Divyangjan Swavalamban Yojana

One of the provisions that the government has made for business loan of this kind reduces the rates of interest. The loan amount  and interest rates as specified by the NHDFC under Divyangjan Swavalamban Yojana are as follows:

Purpose:

• Offer concessional funding for the benefit of persons with disabilities
• Initiating any activity contributing directly or indirectly to the income generation
• Pursuing higher education after the 12th standard
• Pursuing vocational or skill development
• Purchase and/or fitment of any assistive device(s)

Loan Details:

Loan Amount (Rs. In Lakhs)	Rate of Interest (%)	Implementing Agency Margin (%)	Rate of Interest of PwDs (%)
Less than 0.50	2	3	5
Above 0.50 – 5.0	3	3	6
Above 5.0 – 15.0	3	4	7
Above 15.0 – 30.0	4	4	8
Above 30.0 – 50.0	4.5	4.5	9

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the commission.

Eligibility Criteria

• Any Indian citizen with 40% or more disability
• Age above 18 years. However, in the scenario of persons with mental retardation, the eligible age would be above 14 years

Comparison of Interest Rates on Business Loan Offered by Top Banks

Bank/NBFCs	Interest Rate
Axis Bank	10.75% p.a. onwards
Flexiloans	1% per month onwards
HDB Financial Services Ltd.	8% - 26% p.a.
HDFC Bank	10.75% - 25% p.a.
IDFC First Bank	10.50% p.a. onwards
Indifi	1.50% per month onwards
Kotak Mahindra Bank	16% - 26% p.a.
Lendingkart	12% - 27% p.a.
Mcapital	2% per month onwards
NeoGrowth Finance	15% - 40% p.a.
Tata Capital	12% p.a. onwards
UGRO Capital	9% - 36% p.a.
Bajaj Finserv	10% to 26%

Also Check – Interest rates offered by other business loan providers

Types of Business Loans under NHFDC

Broadly speaking, it includes any business that seems to be viable economically and is capable of generating enough income to sustain the person or a family.  Few operational schemes are as follows:

• Divyangjan Swavalamban Yojna
• Credit based and non credit based funding
• Vishesh Microfinance Yojna

Repayment Tenure

The tenure for the repayment of the loan is also pretty long, giving a person ample opportunity to earn the capital back and repay according to convenience. The minimum repayment tenure is 3 years and maximum offered is up to 10 years under various schemes for differently-able people. The moratorium period is also included under this tenure.

Apply for a Business Loan from NHFDC

Now the last step of getting the loan is applying for it and getting approval from the appropriate agencies. Firstly, you should have all the documents ready that can act as proof of your eligibility criteria. Some of the documents required are the voter’s ID for citizenship and age proof, Aadhar card, educational qualification certificate, hospital records showing a minimum of 40% disability, and documents related to previous educational loans. Once all these documents are obtained, a person can submit the application through a format using State Channelizing Agency.

TOLL FREE NO – 1800-11-4515 

(9:30 am to 5.30 pm) (Mon-Fri)

Business loans for a disabled person is definitely a helpful initiative taken by the government of India and it is a certain encouragement that many such people have stood to benefit from it largely and have a successful business of their own.

Read Also: What is Mudra Scheme?