Loans For Disabled

Persons with disabilities (PWDs) often face more unique challenges that require them to seek financial assistance. These challenges can arise from a complex combination of different factors. To mitigate these challenges, the National Handicapped Finance and Development Corporation (NHFDC) has played a crucial role in empowering PWDs by providing loans for disabled people or loans for handicapped persons.

The NHFDC offers special loan products of up to ₹50 lakhs at a maximum low-interest rate of up to 12.5% p.a. with a flexible repayment period of 10 years. Apart from this, some banks also offer personal loans for handicapped persons.

Loans For Disabled Interest Rates

Securing a loan for a handicapped person can empower them to achieve their personal or business goals. Understanding the interest rates for these loans can help them get loans with terms that best suit their requirements. Below is a table showing the different schemes and loans along with their interest rates:

Eligibility Criteria For Disabled Loans

The eligibility criteria to avail a loan for a handicapped person will outline the essential requirements that borrowers need to meet. These criteria will differ depending on the lender, loan type and schemes. Below are the general criteria that borrowers can expect from lenders:

• Must be an Indian citizen with a minimum 40% disability.
• They should be 18 - 55 years of age.
• Minors with disabilities can apply through their parents and guardians.
• Only women Indian citizens can apply for the Mahila Samriddhi Yojana.
• Salaried and self-employed physically handicapped individuals can apply.
• Must have an annual income of ₹1 lakh in Urban areas or ₹80,000 in rural areas.
• Borrowers must not have any outstanding loans in their names nor should be under any financing scheme of the state or central government.
• Must be frequent members of self-help groups.

Documents Required For Disabled Loans

Providing the necessary documentation when availing of a loan for the disabled is important to ensure a successful application. Lenders will have specific documents that are required to assess the eligibility of the borrower. Here are what lenders require as documentation for availing loans for disabled people:

• Loan application form
• Identity Proof
• Unique Disability ID or Disability Certificate issue
• Aadhaar card
• Educational qualification proof
• Invoice or quotation or doctor’s certificate of the equipment required to be purchased.
• A stamp receipt after the purchase of the equipment.

Types of Loans Available for People with Disabilities

There are diverse loan options that people with disabilities can pursue to achieve their goals. These loans provide financial support to cover the unique needs and challenges faced by specially-abled people.

Bank of India Star Mitra Personal Loan

This scheme offered by Bank of India provides support to differently-abled people to purchase durable and sophisticated aids or equipment for the promotion of their social and physical rehabilitation. The features of the loan are as follows:

Government Assistance Programs for Disabled Borrowers

The Government of India has also established several programs to provide financial assistance for disabled borrowers. These schemes are:

National Handicapped Finance and Development Corporation (NHFDC)

The NHFDC offers various loan products for physically handicapped individuals. The schemes offered by this corporation are Divyangjan Swavalamban Yojana, Education loans for studies abroad and India, and Vishesh Microfinance Yojana.

Divyangjan Swavalamban Yojana

This scheme was launched under the NHFDC with the main aim of helping people with disabilities by providing loans for their overall economic empowerment. Under this scheme, loans for the disabled can be given for the following purposes:

• For starting activities that contribute directly or indirectly to income generation
• For pursuing vocational or skill development (ITI, Diploma on any course which can lead to enhancement of employment or self-employment).
• For the purchase or fitment of any assistance devices, customization, retrofitting or conversion of machine, equipment, or vehicle to make them disabled-friendly.

The loan amount and interest rates offered for this scheme is as follows:

Educational Loan for Studies Abroad and India

Indian nationals with 40% disability will be eligible to apply for an educational loan. The loan amount and interest rates for this scheme are as follows:

Vishesh Microfinance Yojana

This scheme was launched by NHFDC to reach out to unbanked populations of society with financial support at moderate interest rates. This is to promote sustainable and inclusive livelihoods including supporting projects that facilitate comfortable living. The features of the loan are as follows:

Mahila Samriddhi Yojana

Mahila Samriddhi Scheme is an advantage to economically weak women with a disability because they are provided with financial assistance for starting any income-generating activity. The loan amount for this loan will be provided through Non-Government Organisations and State Channelling Agencies (SCA). The features of this loan scheme are:

EMI Calculation For Disabled Loans

When getting a disability loan online, effectively planning for the repayment is important to maintain financial stability. The repayment for these loans is usually done through Equated Monthly Instalments (EMI) which can be calculated using an online EMI calculator. The calculators are easy and convenient to use, all you need to do is enter the loan amount, interest rate and tenure of the loan to get an estimated EMI amount in seconds.

Use the calculator below to find out your estimated EMI amount:

Tips for Choosing the Right Lender

To enhance your chances of getting your loan approved you can follow these tips below:

• Improve your credit score: Maintaining a high credit rating increases your chances of loan approval. Before applying, address any issues by carefully reviewing your credit report and making changes when necessary.
• Minimise existing debt: Lowering your existing debt can improve your debt-to-income ratio, which increases your eligibility for a loan.
• Understand eligibility criteria: Familiarise yourself with the specific requirements of each lender to ensure you meet their eligibility criteria.
• Calculate affordable EMI: Use an online EMI calculator to estimate the monthly installment you can comfortably afford. This will help you customize the loan amount and tenure.
• Prepare necessary documents: Gather all the required documents to demonstrate your creditworthiness and financial health, increasing the chances of a successful loan application.
• Demonstrate stable income: Lenders prefer applicants with stable income, as it ensures their ability to repay the loan. Show evidence of a reliable source of income.
• Compare lenders: Compare different lenders to find favorable loan terms and interest rates, potentially saving you money in the long run.

Steps to Apply for Personal Loans

Getting a personal loan is now more affordable and accessible with the help of Buddy Loan, simply follow the steps below:

• Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
• Step 2: Open the personal loan application page. Provide the mobile number and enter the received OTP.
• Step 3: Specify the desired loan amount & personal email. Next, choose the Personal Loan option
• Step 4: Choose the employment type (Salaried, Self-Employed, or Student) and the salary mode (bank or cash).
• Step 5: Enter your work details (Including company name, years of service and Designation)
• Step 6: Enter your personal details (Including Full Name, PAN, address DOB & Gender)
• Step 7: Provide your communication address, and income details and Click the ‘Submit’ button.

Steps to Apply for Business Loans

Require a business loan to kickstart your dream business? Follow these simple steps below to get a business loan:

• Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
• Step 2: Open the business loan application page. Enter your mobile number and OTP.
• Step 3: Specify the desired loan amount and email. Next, choose the Business Loan option.
• Step 4: Choose if you have a Business Proof (Yes/ No)
• If ‘Yes’ (If you have a business proof), enter your business and personal details.
  Or
• If ‘No’ (If you do not have a business proof), choose the profession type and enter your personal details.
• Step 5: Provide income details and Click the ‘Submit’ button.