Business Loan for Handicapped/Disabled Persons

In a quest to help out the disabled or differently-abled person to start their own business, there are business loans for the physically handicapped people. The Government of India has introduced several schemes to provide access to credit for PWDs for business growth. These loans provide access to credit for meeting your business’ working capital requirements, upgrading technology, or expand into new markets.

The Department of Empowerment of Persons with Disabilities extends these facilities through the National Divyangjan Finance and Development Corporation (NDFDC).PwDs can get these credit facilities at concessional interest rates for starting or expanding any income-generating activity.

NDFDC offers a wide range of collateral-free, low-interest business loans for handicapped persons. Check their details below:

Persons with disabilities can get the following types of business loans under NDFDC schemes:

• Term loan

• Working capital loan

• Microfinance loan

• Loans for financing the promoter contribution for business loans from other financial institutions

The financing available for persons with disabilities varies depending on the scheme. The following are the loan amount details:

• The credit loan amount is ₹50 Lakhs for self-employment loans and educational loans under the Divyangjan Swavalamban Yojana

• PwD entrepreneurs can also get a microfinance facility for a project cost of up to ₹60,000 for starting a micro/small enterprise

The NDFDC has set a few parameters to apply for a business loan for disabled. These include:

• The applicant needs to be an Indian citizen with 40% or more disability

• The applicant must be at least 18 years old

• In case of mental retardation, the age of the application should be at least 14 years

• There are no age restrictions to get education loans

• Unique Disability ID (UDID) number or UDID Enrolment number (if the UDID number is not available) is a must

When applying for a business loan for a person with a disability, applicants need to attach the following documents:

• Passport-size photographs

• Disability certification

• Proof of birth date

• Proof of residence, such as an Aadhaar card, ration card, etc.

• Affidavit regarding the income of the family

• Proof of the address of the business

• Surety of one person filing an income tax return or permanent government employee(s)

• Project report

• Performa invoice from the manufacturer or supplier 

• NOC from the concerned bank

The NDFDC grants State Channelising Agencies (SCAs) and other implementing agencies the flexibility to determine the loan tenure. The overall repayment period for these loans can extend up to 10 years.

Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.