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Loans for Disabled / Handicap Persons in India

In India, there are more than 80 million people with disabilities, which is about 6% of the country’s population. These individuals face challenges in things like finding jobs, going to school, and being part of society. One big problem for them in India is getting loans.

Regular banks and money-related places often think people with disabilities might not be able to pay back loans, so they don’t want to give them loans. This makes it hard for them to get money for important things like education, starting businesses, buying homes, and other things they need money for.

However, there are groups in India that give loans especially for people with disabilities. These groups understand the problems that disabled people face and want to help them get loans that they can afford.

Here are a few of the organisations that offer loans to disabled persons in India

  • National Handicapped Finance and Development Corporation (NHFDC): NHFDC is a government-owned organisation that provides loans to disabled persons for a variety of reasons, including education, employment, and business.
  • Divyangjan Sahayata Sansthan (DSS): DSS is a non-profit organisation that provides loans to disabled persons at subsidised interest rates. DSS also offers counselling and other support services to help disabled borrowers succeed.

  • CredAble: CredAble is a digital lending platform that provides loans to disabled persons through a network of partner banks and NBFCs. CredAble offers loans at competitive interest rates and flexible repayment terms.

    If you are a disabled person in India and you need a loan, be sure to research the various organisations that offer loans to disabled persons. With a little effort, you should be able to find a loan that meets your needs and budget.

    In addition to the organisations listed above, there are a number of other government and non-profit organisations that offer financial assistance to disabled persons in India.

    These organisations can provide grants, scholarships, and other forms of financial assistance to help disabled persons meet their basic needs and achieve their goals.

Types of Loans for Disabled Individuals in India

Many types of loans are available for disabled people in India, including:

1.Education Loan

These loans are designed to help disabled persons pay for their education, either at a college or university or at a vocational training institute. 

NHFDC offers education loans to disabled persons who want to pursue higher education. The maximum loan amount for education loans is Rs. 10 lakh. The interest rate on education loans is 4% for women with disabilities and 5% for other disabled persons.

2.Self-employment Loan

These loans are designed to help disabled persons start or expand their own businesses. The interest rates on self-employment loans for disabled persons are also typically lower than the interest rates on self-employment loans for non-disabled persons.

NHFDC offers self-employment loans to disabled persons who want to start or expand their own businesses. The maximum loan amount for self-employment loans is Rs. 25 lakh. The interest rate on self-employment loans is 5-9%.

3.Housing Loan

These loans are designed to help disabled persons purchase a home. The interest rates on housing loans for disabled persons are typically the same as the interest rates on housing loans for non-disabled persons.

NHFDC offers housing loans to disabled persons who want to purchase a home. The maximum loan amount for housing loans is Rs. 25 lakh. The interest rate on housing loans is 7%.

4.Medical Loan

These loans are designed to help disabled persons pay for medical expenses, such as surgery, hospitalization, or rehabilitation. The interest rates on medical loans for disabled persons are typically lower than the interest rates on medical loans for non-disabled persons.

NHFDC offers medical loans to disabled persons who need to pay for medical expenses, such as surgery, hospitalisation, or rehabilitation. The maximum loan amount for medical loans is Rs. 10 lakh. The interest rate on medical loans is 6%.

5.Assistive Device Loans

Assistive device loans are loans that are specifically designed to help people with disabilities purchase assistive devices. Assistive devices are devices that help people with disabilities to perform everyday tasks that would otherwise be difficult to perform. Some examples of assistive devices include wheelchairs, walkers, hearing aids, and computers with specialised software.

NHFDC offers a loan scheme for disabled persons who want to purchase assistive devices. The maximum loan amount for this loan scheme is Rs. 50,000. The interest rate on this loan scheme is 5%.

How to Apply for a Loan for a Disabled Individual?

To apply for a loan for disabled individuals from NHFDC,follow this step-by-step procedure:

Step 1: Visit the NHFDC website-The first step is to visit the NHFDC website and download the loan application form.

Step 2: Gather the required documents-You will need to gather the following documents to apply for a loan from NHFDC:

  • PAN card
  • Aadhaar card
  • Disability certificate
  • Proof of income
  • Business plan or educational plan (if applicable)

Step 3: Complete the application form-Carefully fill out the application form and ensure that all the information is correct.

Step 4: Submit the application form-You can submit the application form online or by post. If you are submitting the application form by post, be sure to send it to the address mentioned on the application form.

Step 5: Wait for approval-Once NHFDC has received your application, they will review it and may ask you to provide additional information. If your application is approved, NHFDC will contact you and provide you with the loan amount.

Conclusion

In India, loans for disabled individuals are vital, as over 80 million people face challenges accessing traditional loans. Organisations like NHFDC, DSS, and CredAble provide tailored loan solutions for their education, self-employment, housing, medical expenses, and assistive devices. These loans aim to empower disabled individuals, fostering inclusivity and equality within Indian society.

Amit Arora Finnable

AMIT ARORA

I am a seasoned retail banker with over 21 years of global experience across business, risk and digital. In my last assignment as Global Head Digital Capabilities, I drove the largest change initiative in the bank to deliver the end-to-end digital program with over US$1 billion in planned investment. Prior to that, as COO for Group Retail Products & Digital, I implemented a risk management framework for retail banking across the group.
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