The unemployment rate is very high among disabled people in India. As per the 2011 Census, only about 37% disabled people get employment. A large number of prevailing myths keep employers from hiring disabled people. Then there are innumerable accessibility issues. Most of the workplaces are not accessible in India. Because of all this, many disabled persons want to become self-employed by starting their own business. But finding money to start a business comes as a big challenge. It is not easy for disabled people to get business loans from private sector lenders.
In order to solve this problem to some extent the government has setup National Handicapped Finance and Development Corporation (NHFDC). This organization provides business loan to persons with disabilities in India. The overall objective of NHFDC is to economically empower the disabled people in the country.
How Disabled People Can Get Loan to Start a Business?
To get a loan from NHFDC, the disabled person must fulfill the following conditions:
- Person must be citizen of India
- Applicant must have benchmark disability
- Person’s age should be between 18 and 60 years
- Annual income of the applicant must be less than Rs. 5,00,000 for urban areas and Rs. 3,00,000 in rural areas
- Applicant should have qualifications/expertise related with the business she wants to start
For What Type of Business the Loan is Available?
Any type of economically viable and income generating activity will be considered for loan.
Amount of Loan Available
- Small business in Service/Trading sector: Loan up to Rs. 3,00,000
- Small industrial unit: Loan up to Rs. 5,00,000
- Education/training to disabled persons in India: Loan up to Rs. 10,00,000
- Education/training to disabled persons in foreign countries: Rs. 20,00,000
- Agricultural activities: Loan up to Rs. 5,00,000
Persons with mental retardation, cerebral palsy and autism can get loan up to Rs. 3,00,000 for self-employment initiatives. (Also see Niramaya Scheme). The loan amount is given to the parents, spouse or legal guardian of the dependent mentally disabled person.
Rate of Interest on Loan
- For loan up to Rs. 50,000 the interest rate will be 5%
- From Rs. 50,000 to Rs. 5,00,000 the interest rate will be 6%
- For loan amount above Rs. 5,00,000 the interest rate will be 8%
Repayment of Loan
Applicant will get a maximum of 10 years to repay the loan amount.
How to Apply?
Applications on prescribed format should be submitted through the State Channelising Agency. Business proposals up to Rs. 3,00,000 are sanctioned by the State Channelising Agency/Bank.
Applications for loan of more than Rs. 3,00,000 is sanctioned directly by NHFDC.
Applications may also be submitted through the branches of Punjab & Sind Bank or Oriental Bank of Commerce.
National Handicapped Finance and Development Corporation
(Ministry of Social Justice & Empowerment)
Red Cross Bhawan, Sector-12, Faridabad – 121007
Phone: (0129) 2287512, 2287513, 2226910
TeleFax: (0129) – 2284371
E-mail: nhfdc97 AT gmail.com
We hope that this article was useful for disabled people who want to avail loan for starting their own business activities. Thank you for connecting with WeCapable!