Financial assistance for differently abled through SCAs & Nationalised Banks

1. wide range of income generating activities to disabled persons.

These are –
For setting up small business in Service/Trading sector :

• Loan up to Rs. 3.0 lakh for sales/trading activity and Rs. 5.00 lakh for service sector activity.
• The small business, project or activity, for which financial assistance has been sought will have to be operated by the disabled person himself and employing at least 15% disabled persons in his venture.

For purchase of vehicle for commercial activity :

• Loan upto Rs. 10.00 lakh.
• Purchase of vehicle including auto rickshaw for commercial activity purpose.

For setting up small industrial unit :

• Loan upto Rs. 25.00 lakh.
• Loan assistance is provided to disabled persons for manufacturing, fabrication and production. The disabled person will be the owner/chief executive of the company and will employ at least 15% disabled persons.

For Agricultural activities :

• Loan upto Rs. 10.00 lakh
• Loan assistance is provided to disabled persons for agricultural production, irrigation, horticulture, sericulture, purchase of agricultural machinery/equipment for agricultural service, marketing of agricultural products etc.

For self-employment amongst persons with mental retardation, cerebral palsy and autism :

• Loan upto Rs. 10.00 lakh
• In such cases, the financial assistance is extended through parents or legal guardian or spouse of the dependant mentally disabled person

Eligibility –
Any disabled person who fulfills the following criteria is eligible to apply for financial assistance –

• Any Indian Citizen with 40% or more disability.
• Age above 18 years.
• Relevant educational / technical / vocational qualification/ experience and background.

RATE OF INTEREST
i)  Upto Rs. 50,000/-  :-  5% p.a.
ii) Above Rs. 50,000/- and upto Rs. 5.0 lakh- :-  6%p.a.
iii) Above Rs. 5.0 lakh and upto Rs. 15.0 lakh :- – 7% p.a.
iv) Above Rs.15.0 lakh and upto Rs.25.0 lakh :- – 8% p.a.

• A rebate of 1% p.a. on interest to women beneficiaries
• Rebate on interest for VH/HH/MR
• A special rebate of 0.5% is also available for PwDs under VH/HH/MR category under self-employment loans.

2. Loan for Education/Training to Disabled Persons :

Purpose –
To meet tuition and other fees/maintenance cost/books and equipment etc. for pursuing professional courses in a recognised educational institution in India and abroad.

Eligibility –

1. Any Indian Citizen with 40% or more disability.
2. Type of Loan – Term Loan
3. Borrower – Disabled student and parent/guardian jointly.

Amount of Loan
Need based finance subject to the repaying capacity of the parents/students with the following ceilings –
i) Studies in India – Maximum Rs. 10.00 lacs
ii) Studies Abroad – Maximum Rs. 20.00 lacs

Promoter’s Contribution –
i) Upto Rs. 4.0 lakh – Nil
ii) Above Rs. 4.0 lakh for courses in India – 5%
iii) Above Rs. 4.0 lakh for courses abroad. – 15%

Rate of Interest – 4% p.a.

Rebate – A rebate of 0.5% p.a. on interest to women beneficiaries.

Repayment of Loan
i) The loan to be repaid within 7 years after commencement of repayment.
ii) The repayment as per repayment schedule would commence after 6 months from the date of scheduled completion of the course or after getting the job, whichever is earlier.
iii) Interest on term loan would be charged from the date of disbursement of loan from NHFDC (grace period as per lending policy is permissible).
iv) In the case of loan extended / to be extended by the Corporation under the scheme, simple interest shall be charged on the loan amount at the prescribed / applicable rate during the moratorium period and unpaid interests, if any, shall be compounded and charged at the commencement of repayment of loan at par with term loan.
v) The beneficiary will submit the copy of marks-sheet after every term/semester to the SCA for further submission to NHFDC.

3. Financial Assistance for Skill & Entrepreneurial Development

Objective –
The objective of the scheme is to provide training to the disabled persons to make them capable and self-dependent through proper technical training in the field of traditional and technical occupations and entrepreneurship. Financial assistance is provided in the form of grant through the SCAs.

Scope –
The scope of the scheme is limited to
i) the beneficiaries who have received loan from NHFDC through the SCA and are successfully pursuing their income generating activity.
ii) beneficiaries who have been sanctioned loan and are awaiting to receive loan.
iii) potential beneficiaries who wish to avail loan from NHFDC and fulfill the eligibility criteria for availing loan.

Eligibility –
The beneficiaries should be in the age group of 15-50 years and fulfill the other eligibility criteria for availing loan from NHFDC.

Duration of Training – Upto 12(twelve) months.

Amount of Grant
i) 100% of the total recurring cost of the training programme is provided by NHFDC.
ii) Stipend – The recurring training cost shall include a stipend of Rs. 500/- per week pertrainee i.e 2000/- per month to the trainee to cover the cost of transportation and other incidental expenses. The training institute/SCA shall release the stipend in favour of the trainee through A/c payee cheque only.

Procedure for Obtaining Financial Assistance
The training proposal is to be submitted to National Handicapped Finance and Development Corporation by the State Channelising Agency/Bank implementing NHFDC schemes; wherever, such agencies sponsor the training. Reputed National/State level training organizations may also directly approach NHFDC with their training proposal. The training proposal is to be prepared in accordance with the guidelines for preparation of training proposal under the scheme.

Training Institutes
The SCA may identify suitable training institute preferably Government training institutes like Industrial Training Institute (I.T.I.), Polytechnic, Engineering College, Agriculture University, National Institute for Entrepreneurialship and Small Business Development etc. Training proposal can also be submitted involving reputed private training institutes. In such cases, profile of the institute, its past record particularly training conducted for the disadvantaged section of the society etc. should be submitted. For conducting training for visually and speech & hearing impaired, the facilities of the institute should be examined and indicated in the training proposal.

4. Micro Credit Scheme – Loan upto Rs. 5.0 lakh to NGO, Rs. 25000/- per beneficiary @ 5% p.a.

The Micro Credit Scheme is presently implemented by NGO working in the social sector preferably for the disabled persons and should have adequate experience for undertaking programmes for economic and social rehabilitation of economically weaker section of the society. Under the scheme, the application is to be submitted through the State Channelising Agency (SCA).

5. Scheme for Parents Association for the Mentally Retarded Persons – Loan upto Rs. 5.0 lakh

Financial assistance is provided to Parents Association for the Mentally Retarded Persons to set up an income generating activity for the benefit of 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.
Under the scheme, the application by the association is to be forwarded to NHFDC directly.
Quantum of loan, rate of interest, repayment period etc. will remain same as for schemes implemented through the SCA.

6. Scheme For Disabled Young Professional

This scheme is for professionally educated unemployed disabled youth. In order to inculcate the spirit of self-confidence among such disabled youths through self-employment and utilise their wisdom & experience gained through professional training & education, the Corporation provide loan at the rate of 4-8% p.a. to professionally educated / trained disabled youths.

Eligibility :
1. Any Indian Citizen with 40% or more disability.
2. Age between 18 and 45 years
3. Should have obtained a professional degree from recognized Institute.
4. The activity proposed should be directly relevant to the professional degree of the applicant

Maximum Limit of Loan :

The maximum loan limit is Rs. 25.0 Lakh.

Pattern of Finance :

i) NHFDC Loan : upto 85%
ii) SCA Loan share : 5%
iii) Beneficiary contribution : upto 10%

Rate of interest :

i) Upto Rs. 50,000/-  :-  5% p.a.

ii) Above Rs. 50,000/- and  upto Rs. 5.0 lakh  :- 6% p.a.

iii) Above Rs. 5.0 lakh  :-  8% p.a.

Rebate : A rebate of 1% p.a. on interest for disabled young women professional.

Repayment Period – The loan is to be repaid within 10 years (including moratorium period).

Working Capital :- NHFDC will consider a working capital margin of up to 30% of the estimated requirement.

Illustrative list:-
Doctor; Architect; Engineer including Software/Hardware/Automobile; Advocate ; Chartered Accountant/ Cost Accountant; Hotel Management, Geriatric Home Care; Publicity & Advertisement; Service & Maintenance of Building : Security Guard Agency; Coaching Centres for Competitive Examination , Culture and Tourism Development ; Printing Press/DTP/Graphics etc.; Fashion Designing/Boutiques; Textile Designing; Ornamental / Sculpture; Value addition in traditional Art & Craft etc.

The above list is only illustrative and not exhaustive. The eligible youth may get financial assistance for any other technically feasible and financially viable project.

It is expected that such professionally managed ventures will create equal number of wage employment opportunities for skilled /semi-skilled workers and add to the wealth of the nation.

The youth who have already obtained loan assistance pursuing higher professionals education may also be considered for providing additional loan establish self-employment income generating ventures, however, the loan limit should not exceed Rs.25.00 Lakh per beneficiary including education loan.

7) Scheme for Developing Business Premises:

Loan upto Rs. 3.0 lakh to PwDs desirous of developing business premises on their own land and starting self- employment activity.

8) Scheme for Pursuing Vocational Devices:

Loan upto Rs. 2.0 lakh to Students with Disabilities for pursuing vocational / skill training courses.

9) Scheme for Purchase of Assistive Devices:

Loan upto Rs.5.0 lakh for purchase of assistive devices including retrofittings which will enhance the prospects

of PwDs for their employment / self – employment.

10) Scheme for NGOs for their capacity expansion:

Loan upto Rs.5.0 lakh to NGOs working in the area of disability to implement single or multiple production

activity on behalf of a group of PwDs.

11) Hand holding support to registered institutions for PwDs:

The registered institutions are eligible for hand holding support of upto Rs.1000/- per PwD for extending

information, support, guidance for procedural / documentation formalities to PwDs in obtaining loans
or admission in training institutes.