Loan Facility for Physically Handicapped Person

The Constitution of India allows equal rights for all citizens. Keeping up with that objective, the Government of India has framed up various initiatives to ensure that the physically handicapped individuals can have equal access to opportunities for financial assistance as normal individuals. Many employers do not consider physically challenged individuals as an ideal candidate for employment. But, there are many avenues for self-employment which a physically handicapped individual can make use of with the help of financial assistance from the Government

Business Loan Facility for the Physically Handicapped in India

There are a few initiatives that a physically handicapped individual can avail that can go a long way in empowering and making himself self-reliant. Government Loan Schemes from National Handicapped Finance and Development Corporation National Handicapped Finance and Development Corporation (NHFDC) is a Government-owned organization under the Ministry of Social Justice and Empowerment. NHFDC functions as an apex institution for channelizing the funds to persons with disabilities through the State Channelising Agencies (SCAs) nominated by the State Government(s).

Loan Schemes available for the handicapped from NHFDC

Some of the important schemes offered by NHFDC for physically handicapped are

  1. Divyangjan Swabhalaman Yojana
  2. Vishesh Micro Finance Yojana (VMFY)
  3. Educational Loans for Physically Handicapped

Divyangjan Swabhalaman Yojana

This is the flagship scheme from NHFDC. The main objective of this scheme is to assist the needy disabled persons by providing concessional loans for the economic and overall empowerment. Under Divyangjan Swabhalaman Yojana, concessional credit is available for all those with a disability( as qualified by PwD Act 2016) for the following activities.

  • Starting any activity contributing directly or indirectly in the income generation or helping PwD in their overall process of empowerment.
  • Pursuing higher education after class 12th (UG, PG, Professional courses and other courses approved by UGC/AICTE/ICAR/Government etc)
  • Pursuing vocational or skill development (ITI, Diploma any other course leading to enhancement of employment or self-employment)
  • Purchase and/or fitment of any assistive device(s)/customization/retrofitting or conversion of an available machine, equipment, vehicle to disabled-friendly mode

Eligibility Conditions Applying for a Loan under Divyangjan Yojana

  • Any Indian citizen with 40% or more disability (Disability as defined in PwD Act, 2016 or its amendments).
  • Age above 18 years. However, in the case of persons with mental retardation, the eligible age would be above 14 years.
  • The age criteria would not be required for educational loans.
  • There is no economic criteria fixed for availing these loans.

Rate of Interest for Divyangjan Swabhalaman Yojana Scheme

The rate of interest for the loan depends on the amount of the loan availed as given below. The interest charged is a simple rate of interest per annum.

Amount of the Loan availed Rate of Interest charged
Less than Rs 50000 5%
Rs 50000 - Rs 5 Lakhs 6%
Rs 5 - Rs 15 lakhs 7%
Rs 15 lakhs - Rs 30 lakhs 8%
Rs 30 lakhs -Rs 50 lakhs 9%

A rebate of 1% in interest will be allowed to women with disabilities/persons with disabilities other than OH in self-employment loans of up to Rs.50,000/-


The maximum tenure of 10 years will be allowed for repayment of the loan. Prepayment of the loan is also allowed without any prepayment penalty.


Reasonable collateral or security may be asked for availing the loan. The disbursing agencies may even co-opt family members of the applicants as co-borrowers. The assets and beneficiaries of the scheme will also be insured through various available government schemes.

Vishesh Micro Finance Yojana (VMFY)

NHFDC intends to reach out to the unbanked population of the target group through last-mile financiers at reasonable /moderate rates of interest for promoting sustainable and inclusive livelihoods. In order to do so, NHFDC has partnered with NBFCs, MFI, SHG Federations, State Govt Missions, etc to pursue small/micro business and developmental activities.

Eligibility Conditions for availing Vishesh Microfinance Yojana

The eligibility conditions for availing funds under VMFY will be as those implemented by SIDBI or NABARD from time to time.

Financial Details

  • Maximum Finance Allowed: The maximum unit cost of the Project should not exceed Rs.60,000/-.

  • Method of Assistance: NHFDC's share shall be up to 90% of the project cost. The balance 10% shall be contributed by the Implementing Agencies or other organizations acting as implementing partner of NHFDC, and/or beneficiaries.

  • Rate of Interest: The rate of interest would be 12 % p.a.

  • Repayment Period: At the start of the loan period, a moratorium of 3 months is allowed. Post which quarterly payments need to be made. The maximum tenure of the loan can be 3 years. In addition, the 120-days period is allowed for funds utilization. There shall not be any moratorium period for payment of interest.

Educational Loans for Physically Handicapped

Any Indian national with 40% disability could apply for an educational loan to pursue higher education in India or abroad

Quantum of Loan Available: Rs 10 lakhs for studies in India , Rs 20 lakhs for studies abroad

Rate of Interest: 4% p.a with a rebate of 0.5% for female students

Tenure of the loan:

  • The loan to be repaid within 7 years after commencement of repayment.
  • The repayment as per repayment schedule would commence one year after completion of the course or 6 months after securing a job, whichever is earlier.
  • Interest on term loan would be charged from the date of disbursement of loan from NHFDC (grace period as per lending policy is permissible).

Expenses Permissible from the Loan

  • Fees payable to college/school/hostel
  • Examination/Library/Laboratory fees
  • Purchase of Books/Equipment/Instruments/Uniforms
  • Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the entire course)
  • Travel Expenses/Passage money for studies abroad
  • Purchase of computers considered necessary for the completion of course
  • Cost of a Two-wheeler up to Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work, Assistive devices etc

How to Apply for the Loan Facility from NHFDC?

NHFDC allows various channels to avail their loan facility

  1. Apply through State Channelising Agencies.

    You can apply for a business loan or an educational loan for the handicapped through the State Channelising Agencies appointed by the State Govts or Union Territories. You can get to know the State Channelising Agencies in your area here. Projects up to Rs. 10.0 lakh is sanctioned by State Channelising Agency and projects more than Rs. 10.0 lakh is sanctioned by NHFDC

  2. Nationalised Banks/ Regional Rural Banks

    The National Handicapped Finance and Development Corporation extends a loan to the persons with disability through Punjab National Bank, Andhra Bank, IDBI Bank and also through Regional Rural Banks in the State of Haryana, Gujarat, Uttar Pradesh and Uttaranchal.

  3. NGOs

    You could also choose to submit the application through NGOs in the field. They will, in turn, forward the application to the respective State Channelising Agency to help you avail the loan

Documents Required to Avail a Government Loan for Persons with Disabilities

The documents that are required for availing a loan from NHFDC are

TAn Application form that can be obtained from implementing agencies or may be downloaded from NHFDC.

The other supporting documents needed would be

  • Approved Identity Proof
  • Unique Disability ID or Disability Certificate issued by the competent authority
  • Aadhar Card
  • Proof of educational qualifications

Personal Loan from Money View for the Physically Challenged

Money View offers instant online personal loans to all individuals meeting their simple eligibility criteria. The physically challenged can avail of these loans from the comfort of their homes without having to make multiple trips to the banks/financial institutions.

To avail a personal loan from Money View you could download the loan app or apply here and get your loan approval in 2 mins and your funds in your account in 24hrs.