List of Loans for Physically Challenged Individuals in India

The Indian government cares about each one of its citizens. As a result, the government has set up various beneficial loan schemes to help differently-abled citizens. The main objective of these loan schemes is to enable the economic empowerment of physically challenged people. Compared with other regular loan schemes, these specialised loans are easily sanctioned, require minimal documentation, and attract low-interest rates.

In this guide, let's examine the various loan schemes offered for differently-abled individuals in India.

1. Loans from the NHFDC 

The NHFDC (National Handicapped Finance and Development Corporation) is a central government corporation that falls under the Ministry of Social Justice and Empowerment. It’s headed by the Department of Empowerment of Persons with Disabilities (Divyangjan). 

The NHFDC is a not-for-profit company that offers financial assistance to PwDs (Persons with Disabilities). The loans from the NHFDC are aimed at the economic empowerment of PwDs and also helps in skill development. 

The three major loan schemes offered by the NHFDC include:

Divyangjan Swavalamban Yojna 

The primary objective of this scheme is to offer concessional loans to PwDs for their economic empowerment. 


  • Eligibility criteria – An Indian citizen with 40% or more disability and aged 18 years or above. In the case of mentally challenged individuals, the eligibility age is 14 years.

  • The maximum loan amount under this scheme is Rs. 50 lakhs. 

  • The rate of interest ranges from 5% to 9%, depending on the amount sanctioned.

  • Type of loan – term loan or working capital loan. 

  • Repayment tenure – maximum of 10 years.

Vishesh Microfinance Yojana 

As the name implies, this scheme offers loan facilities to PwDs to help them engage in micro and small businesses. The program provides need-based finance at affordable interest rates.  


  • Eligibility Criteria – The eligibility norms are the same as that of NABARD and SIDBI. 

  • Unit Cost of the project shall not exceed Rs. 60,000. 

  • The rate of interest is 12%. 

  • 90% of the project cost is borne by the NHFDC, and the remaining 10% is borne by the implementing partner/beneficiary.

  • Repayment tenure – The loan is sanctioned for a maximum period of three years. The loan is repaid as quarterly instalments. 

Educational Loan 

As the name implies, this scheme offers loans for the education of PwDs. 


  • Eligibility Criteria – All Indian citizens with 40% or more disabilities are eligible for education loans offered by the NHFDC. 

  • The quantum of loan sanctioned for studies in India is Rs. 10 lakhs, and Rs. 20 lakhs is offered for overseas education.

  • The rate of interest for education loans up to Rs. 20 lakhs is 4%. Female students with disabilities can avail of a 0.5% rebate on the interest.

  • The maximum repayment tenure for education loan is 7 years. 

How to obtain loans from the NHFDC? 

The NHFDC offers loans to eligible persons via various state channelizing agencies appointed by their respective state governments. The applicant must submit the loan application in the prescribed format to the corresponding state channelizing agency. For a complete list of the channelizing agencies in your state, visit the website of NHFDC. 

Besides state channelizing agencies, applicants can also submit the loan requests to various nationalised banks, Regional rural banks, and NGOs, all of which pass the applications to the NHFDC. Projects up to Rs. 10 lakhs are sanctioned by the corresponding state channelizing agency. For bigger projects, the sanction has to come from the NHFDC.

2. Mahila Samriddhi Yojana

This is a special loan scheme offered to disabled women who belong to weaker sections of society. The loan amount for this scheme is provided via state channelizing agencies and NGOs.

Features of this loan scheme:

  • Eligibility Requirements: Here are the eligibility requirements for loans under the Mahila Samriddhi Yojana:

  • Offered to Indian women with a disability of 40% or more

  • Age of the applicant must be between 18 and 55 

  • The applicant must earn an annual income of Rs. 1 lakh or more in urban areas. For rural areas, the annual income must be at least Rs. 80,000 per annum. 

  • Rate of interest – up to 4%

  • The loan amount – starts from Rs. 25,000

  • Repayment tenure – 3 months to 6 months 

  • 90% of the project amount is sanctioned by the NHFDC, and the rest is borne by the beneficiary.

3. BOI Star Mitra Personal Loan 

Besides the NHFDC, other nationalised banks offer loans for differently-abled people. The Star Mitra Personal Loan from Bank of India is one such popular scheme. The loan aims to enable physically challenged people to earn independently. Some of the salient features of this loan scheme are:

  • Aim of the loan is to help physically challenged people purchase appliances and aids that help in their physical and social rehabilitation.

  • The loan is offered to both self-employed and salaried individuals. 

  • Minors who are differently-abled are also eligible for this scheme. The loan is taken in the name of their parents/legal guardians.

  • The loan amount sanctioned is in the form of a term loan.

  • The applicant must provide the quotation of the equipment he/she plans to purchase using the funds secured in the loan. Also, the borrower is required to provide proof of purchase once the loan is sanctioned. 

  • Repayment tenure ranges from 12 months to 60 months. 

  • Loan amount – Maximum Rs. 1 lakh 

  • Interest rate – 1 yr MCLR + 1.00%


Enjoy Economic Empowerment and Live with Dignity with the Right Loan 

The government of India offers various loan schemes to help physically challenged people live life on their own terms while enjoying economic independence. Low-interest rates, minimal documentation, relaxed eligibility requirements, and quick processing are some of the benefits of loans for physically challenged people.

Choose the right loan scheme from the ones listed here, and set up an income-generating activity, and live life on your own terms, without relying on others for financial stability.