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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. When starting a personal business, you require adequate capital investment for smooth operations. 

 

Therefore, the need for business loans for handicapped people arises in making their dreams come true of running their own enterprises. The government introduced a corporation known as ‘The National Handicapped Finance and Development Corporation’ (NHFDC). 

 

They provide business loans for a disabled person to carry out various business-related activities. This loan helps ensure your disability is no longer an impediment to achieving your entrepreneurial goals.

NHFDC’s Loan Schemes for Physically Handicapped Persons

NHFDC, or National Handicapped Finance and Development Corporation offers a wide range of collateral-free low-interest business loans. These can be used for the empowerment and education of individuals with physical disabilities. 

 

By offering small business loans for the disabled to set up their own businesses, these schemes open doors to opportunities. Here are the various loan schemes offered by this organisation:

Schemes Offered by NHFDC for Physically Handicapped People

 

Type of Scheme

 

Purpose

Annualized Rate of Interest

Loan Amount

Vocational education and training for people with disabilities

Fund professional courses offered through recognized Indian and international institutions

4%

Up to ₹20 Lakhs

Scheme for financial assistance for skill & entrepreneurial development

Technical training offered to disable individuals to make them self-reliant

-

-

Financing for construction of commercial/business premises to start self-employment activities

To set up a small business unit, purchase a vehicle for commercial use, purchase machines for agricultural activities, and more

5-6%

Up to ₹3 Lakhs

Financing assistive devices to increase self-employment opportunities for persons with disability

For developing income-generating activities

Up to 5%

Up to ₹10 Lakhs

Scheme for young professionals

To provide financial assistance to educated youth who are unemployed

5-8%

Up to ₹25 Lakhs

Disclaimer: The interest rates and other specifics mentioned above can vary as per terms and policies of NHFDC

Micro Financing Schemes for the Physically-Disabled Persons

Here are some microfinance schemes that people with physical disabilities can avail.

  • Vocational education and training for PwDs

  • Scheme for financial assistance for skill & entrepreneurial development

  • Financing for construction of commercial/business premises to start self-employment activity for PwDs

  • Financing assistive devices to increase the opportunity of self-employment of persons with disability

  • Scheme for young professionals

Eligibility Criteria for Disabled Person

There are a few criteria that need to be fulfilled by the applicant in order to be eligible for the business loan for a disabled person:

  • Applicants must be an Indian citizen 

  • Applicants must be 18 years of age and above 

  • Applicants must have at least 40% disability

  • Applicants must have a professional degree from an educational organisation

  • The business for which applicants require the loan must be a legal one with an approval from CGS

  • Applicants under NHFDC that have already applied for an educational loan may apply for a business loan. However, the total amount availed can’t exceed ₹25 Lakhs

  • Applicants must be a part of Thrift and Credit Group (Self Help Group)

Types of Business Loans under NHFDC

Any business that seems to be viable economically and is capable of generating enough income to sustain the individual or a family. A few operational schemes are as follows:

  • Self-employment Loan

  • Micro Credit Scheme

  • Educational Loan Scheme

  • Purchase of Assistive Devices scheme

Loan Amount Offered Under the NHFDC Schemes

The maximum loan amount offered by NHFDC for the upliftment of disabled or differently abled individuals is as follows:

  • Get a loan amount of up to ₹3 Lakhs to establish a small business in the Service or Trading sector (In case of transport activity, a loan amount of up to ₹5 Lakhs is sanctioned)

  • In order to set up a small industrial unit, a loan amount of ₹5 Lakhs is offered.

  • Up to ₹10 Lakhs is provided for education or professional training to disabled individuals. (For studying in India, it is ₹10 Lakhs and for studying abroad, it is ₹20 Lakhs).

  • Avail loans of up to ₹5 Lakhs for agricultural activities

  • Persons with autism, cerebral palsy, and mental retardation are offered up to ₹3 Lakhs for self-employment purposes.

Loan Repayment Tenure for NHFDC

The tenure for the repayment of the loan is long-term, giving the borrower enough time to earn the capital back and repay as per their convenience. The minimum loan repayment tenure is 3 years, and the maximum offered is up to 10 years under various schemes for disabled or differently-abled people. 

 

The moratorium period is also included under the loan tenure.

Apply for a Business Loan from NHFDC

When applying for a business loan from NHFDC, you need to get approval from the appropriate agencies. It is good to have all the documents handy. The documents required are identity proof such as voter’s ID for citizenship and age proof, an Aadhaar card, and an educational qualification certificate. 

 

You also need hospital records that prove the individual has a minimum of 40% disability. Also, other documents related to previous educational loans need to be provided. Once all these documents are obtained, the applicant can submit the application through a format using the State Channelizing Agency.

 

Business loans for disabled people are definitely a helpful initiative taken by the government of India. The main idea is to provide the necessary financial help to such individuals so that they can live their life with dignity without being dependent on others financially. These loans are very easy to avail with minimal paperwork and effort. 


To avail business loans at attractive interest rates, you can apply for Bajaj Finance Business Loan to finance various business operations, such as an expansion of your business, acquisition of other companies, buying high-value and getting new machinery or equipment, etc.

FAQs on Business loan for Disabled Person

What is the interest rate for a handicap business loan?

The interest rate for a business loan for a handicapped person ranges between 5-9%.

Is there any government scheme for handicapped people?

Yes, the government has implemented special schemes for small business loans for persons with disabilities under The National Handicapped Finance and Development Corporation (NHFDC).

Some schemes under this corporation are Divyangjan Swavalamban Yojana, Vishesh Microfinance Yojana (VMY) and NHFDC Swavalamban Kendra (NSK). If you wish to take advantage of a handicapped business loan, apply online on the official website of the National Handicapped Finance and Development Corporation (NHFDC).

Who is eligible for the Divyangjan Swavalamban Yojana?

The eligibility eligible for Divyangjan Swavalamban Yojana includes being an Indian citizen above 18 years with 40% or more disability and age above 18 years.

What is the Sambhav scheme for disabled people?

Sambhav scheme for disabled people provides a demonstration of aids, appliances, software and other assistive devices. It provides information as well as convenient access to such assistive devices. This scheme is aimed at the empowerment of PwDs (persons with disabilities).

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