Everybody shares equal rights and nobody is left out when it comes to getting government help and resources. In a quest to help out the disabled or differently-abled person to start their own business there are various offers available for business loan schemes. When starting a personal business you require adequate capital investment for smooth operations. Therefore, the need for business loans for disabled arises in making their dreams come true of running their own enterprise. 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 or National Handicapped Finance and Development Corporation is offering a wide range of security-free low-interest business loans for the education and empowerment of individuals with physical disabilities. Their main target is to open up self-employment opportunities for such individuals by offering small business loans for disabled to set up their own business. Here are the various loan schemes offered by this organisation:
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 to PwDs.
Financing assistive devices to increase the opportunity of self-employment of persons with disability.
Scheme for young professionals.
There are a few criteria that needs to be fulfilled by the applicant in order to be eligible for the business loan for disabled person:
You need to be an Indian citizen to be eligible
The applicant needs to be above 18 years of age.
Minimum 40% disability
Must have a professional degree from an educational organization
The business loan that is being sought for should comply with the educational degree that is held
The business should be legal and approved under the CGS
f a person under NHFDC has already applied for an educational loan, he or she can still go for a business loan, however the combined amount should not exceed 25 lakhs
Preference is given to women beneficiaries
Applicant should be a member of Thrift and Credit Group (Self Help Group)
Any business that seems to be viable economically and is capable of generating enough income to sustain the individual or a family. Few operational schemes are as follows:
Micro Credit Scheme
Educational Loan Scheme
Purchase of Assistive Devices scheme
The maximum loan amount offered by NHFDC for the upliftment of disabled or differently abled individuals are as follows:
To establish a small business in the Service or Trading sector a loan amount of up to Rs.3 lakh is offered. (In case of transport activity, loan amount of up to Rs.5 lakh is sanctioned)
In order to set up a small industrial unit, a loan amount of Rs.5 lakh is offered.
For providing education or professional training to the disabled individuals, up to Rs.10 lakh amount is provided. (For studying in India it is Rs.10 lakh and for studying abroad it is Rs.20 lakh).
To finance agricultural activities, loans of up to Rs.5 lakh are offered.
Persons with cerebral palsy, mental retardation and autism are offered loan amounts of up to Rs.3 lakh for self-employment purposes.
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 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.
When applying for a business loan from NHFDC you need to get the approval for the appropriate agencies. Firstly, you should have all the documents ready that can act as proof for your eligibility criteria. The documents required are identity proof such as voter’s ID for citizenship and age proof, Aadhar card, educational qualification certificate, hospital records that proves 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 is 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 Finserv 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. You can avail a business loan up to Rs. 30 Lakhs.