1. Purpose –
Purpose of the scheme is to provide loan to parents associations of mentally retarded persons to set up an income generating activity for the benefit of the mentally retarded persons. The nature of income generating activity will be such that it involves the mentally retarded persons directly and income will be
distributed among the mentally retarded persons. The income generating activity will be managed by the parents association, which is expected to render
its services voluntarily.
2. Eligibility –
a) The parents association should be registered for at least 3 years.
b) It should have a minimum membership of 5 parents.
c) It should not be a financial defaulter of central government, state government, any financial institution in the public sector, banks etc.
3. Quantum of Loan –
Quantum of loan to each NGO is limited to Rs. 5.00 lakh. The share of the NGO will be 5% of the project cost. The loan will be used by the NGO to
implement a single or multiple activity project in which the maximum possible participation of the beneficiaries may be ensured.
4. Rate of Interest –
The interest on the loan amount will be charged as per following :
i) Less than Rs. 50,000/- :- 5% p.a.
ii) Above Rs. 50,000/- and upto Rs. 5.0 lakh. :- 6% p.a.
5. Repayment Period –
The loan amount including interest will be repaid within 10 years in equal quarterly instalments.
6. Penal Interest –
A penal interest of 3% p.a. would be charged for delay in the repayment of instalment. The repayment instalment should reach by demand draft to the
office of National Handicapped Finance and Development Corporation within 3 days of the repayment falling due.
7. Utilisation of Loan –
The loan should be utilised for the purpose for which it has been sanctioned and utilisation certificate in this respect is to be given by the NGO within 3
months of drawal of fund from National Handicapped Finance and Development Corporation or within the time stipulated by the corporation in each case. If at
any stage it is established that either full or part of the loan is utilised for any other purpose, the organisation would be liable to repay the entire loan in one
lumpsum alongwith interest.
8. Security –
25% of the total sanctioned amount in the form of FDR pledged as security to NHFDC or 40% of the amount as collateral security.
9. Insurance Cover –
Adequate insurance cover may be obtained in respect of assets acquired by the NGO out of the loan advanced by National Handicapped Finance and
Development Corporation. The premium of insurance will be paid by the NGO.
10. Procedure for Obtaining Loan –
The loan application under the scheme will be submitted to National Handicapped Finance and Development Corporation directly by the NGO.
However, the NGO should get a resolution passed by its managing committee/ board of trustee to this effect. Proof of this should be submitted alongwith the
11. Maintenance of Accounts and Report –
The parents association will open a separate bank account in respect of loan advanced by NHFDC and accounts will be maintained separately. A quarterly
report of income and expenditure will be sent to NHFDC.
12. Management of the Project –
The income generating activity for which loan is advanced by NHFDC will be managed by such office bearers of the parents association who are parents of
mentally retarded children. It will hold at least one meeting in a quarter to review the implementation and progress of the project. A representative of
NHFDC will also be attending such meeting to review the implementation of the project.