Public Sector Banks
Under the schemes of public sector banks for the welfare of physically handicapped persons, differential interest rates are available to physically handicapped persons as well as institutions working for the welfare of the handicapped.
Eligibility (for individuals)
Physically handicapped persons:
- pursuing a gainful occupation
- family income should not exceed Rupees 7200 per annum in urban and Rupees 6400 per annum in rural areas
- should not have land holding exceed 1 acre if irrigated and 25 acres if un-irrigated
- should not incur liability to two sources of finance at the same time
- should not employee paid employees on a regular basis
Eligibility (for institutions)
Institutions for the physically handicapped persons pursuing gainful occupation are also eligible to take benefit for productive and administrative expenses. The institutions are exempted from income criteria.
Assessment
The quantum of loan, both for working capital and for acquisition of fixed assets, will be determined on the basis of the needs of institutions/individuals.
Amount of Loan
The amount of loan will depend on the particular scheme proposed to be financed. The normal limit will be Rupees 6,500 for working capital loan and Rupees 5,500 for a term loan. In exceptional cases, particularly for institutions etc., higher amounts are allowed.
Repayment
Term for the acquisition of fixed assets are normally allowed for five years, including a grace period not exceeding two years on the repayment of principal. The repayment schedule will be working out in each case having regard to the nature of the activities of the borrower and the economics of the scheme.
Security
The borrower may or may not be able to offer tangible security to secure the loan. The potential viability of a project will be the main criterion for the grant of an advance.
Margin
In the case of borrowers belonging to the weakest strata of society who may not be in a position to furnish margin money, requirements of margin money will not be insisted upon.
Rate of interest
The interest will uniformly be charged @ 4 per cent per annum. Physically handicapped persons including blind eligible under DRI scheme are also given loans for purchasing of artificial limbs, hearing aids, wheelchairs etc., subject to maximum of Rupees 2500 per borrower provided such assistance is given along with the advances for productive activities and self employment ventures and all other requirements under DRI Scheme are fulfilled.
Under the scheme of ‘Financing Small Scale Industries’ a special provision has been made to allow concession of .5% in the rate of interest to the physically handicapped availing working capital limit above Rupees 2500 and upto Rupees 2.0 lakhs.
Repayment period and interest on working capital stipulated as under:
- Repayment Medium term loan: 5 to 7 years including
- Period: Moratorium period of 6 to 12 months
- Old Machinery other than generator set: 36 months
- New Generator set: 42 months
- Old Generator set: 30 months
- Interest for Working Capital: With aggregate advance upto Rupees 25,000: 12.5%
Above Rupees 25,000 upto Rupees 2.0 lakhs: 13.5%