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About Loans for Disabled

Disabled or differently abled individuals face great difficulty in day-to-day activities. They need special aids to help them. This help comes at a considerable price. Some banks and NBFCs have therefore designed a loan product that can help such people purchase the necessary aids to help them function independently.

Here are two such schemes offered by Bank of India and NHFDC (The National Handicapped Finance and Development Corporation).

Loans For Disabled
Loans for Disabled

Bank of India Star Mitra Personal Loan

Bank of India Star Mitra Personal Loan is a scheme designed to help physically disabled individuals. Under the scheme, physically disabled individuals can take loans to purchase modern aids that will help them become independent. These aids include everything from prostrate limbs to wheelchairs or computers. The details of the loan are as follows –

  • Loan is available to all physically challenged individuals whether employed or self-employed.
  • Minors with physical disability may avail loan through their parents.
  • The loan is not available to NGOs or other intermediaries or agents.
  • The loan is a secured loan and is available on demand for a specified term.
  • The maximum loan available is INR 1 lakh.
  • There is no minimum limit on loan amount.
  • The amount of loan is subject to –
    • 10 times of the net salary of employed individuals
    • 50% of the net annual income for self-employed
    • 50% of the net annual income for professionals
    • The net income after deducting loan EMI should not be less than 40%
    • In case of children under 18 years of age (minors), the income of the parents / legal guardians will be considered for eligibility.
  • The loan may be disbursed in parts.
  • Tenure is 12 to 60 months.
  • The first installment would be due one month after full disbursement or 3 months after first disbursement – whichever is earlier.
  • The rate of interest is 1.00% + BSS (0.30%) above 1 Year MCLR
  • The equipment purchased shall be hypothecated to the bank for the duration of the loan.
  • Bank of India does not require any insurance against the loan. However, they do advise borrowers to take insurance for the amount of loan as a security measure.

The following processing charges will apply –

I.Fully Secured 1 Year MCLR + 4.50%

One time 2.00% of loan amount

Min. Rs.1,000/-

Max. Rs.10,000/-

II.Clean/Unsecured1 Year MCLR + 5.50%
III.Financing secured under tie up arrangements1 Year MCLR + 4.50%
IV.For Senior Citizen aged 60 years & above for Loans Upto Rs.50,000/-1 Year MCLR + 3.50%

Senior Citizen (60 years & above)

No Processing Charges

The following requirements must be fulfilled along with loan application –

  • Submission of doctor’s certificate regarding the handicap, severity, and need for equipment.
  • Quotation or Invoice of equipment purchased
  • Stamped receipt of payment for equipment – this may be submitted after actual purchase.
  • Other terms with respect to personal loan will apply.

The information provided here is subject to change at any time by the bank. Please visit the bank website or branch for more details.


The National Handicapped Finance and Development Corporation (NHFDC) offer assistance to disabled individuals under various schemes. Here is a complete list of schemes -

  • Schemes implemented through SCAs & Nationalized Banks
  • Micro Financing Scheme
  • Schemes for Parent's Association of mentally retarded persons
  • Scheme of Financing NGOs Working in the Area of Disabilities
  • Scheme For Vocational Education and Training for PwDs
  • Scheme for financial assistance for skill & entrepreneurial development
  • Scheme of Financing Construction Of Commercial/Business Premises For Starting Self Employment Activity to PwDs
  • Scheme For Providing Handholding Support to Disabled Entrepreneurs Through ‘Vishesh Udyami Mitras'
  • Scheme for Providing handholding support to Disabled for availing skill training/skill upgradation through ‘Vishesh Prashikshan Mitras’
  • Scheme of Financing Assistive Devices to Enhance the Employability or Increased Opportunity of Self Employment of Persons With Disability
  • Scheme for Young Professional
  • Scheme for Refinance To Public Sector Banks/Regional Rural Banks / Other Eligible Institutions Under Credit Guarantee Scheme of Government of India (Credit Guarantee Fund Trust For Micro And Small Enterprises (CGTMSE)
  • Scholarship Scheme (Trust Fund)
  • Format For Grant Assistance Under CSR Activity Of NHFDC

Loans are offered to disabled individuals for various purposes under these schemes. The loans help handicapped or differently abled individuals in the following areas among others –

  • Obtain education for gainful employment
  • Obtain vocational education
  • Acquire specific skills
  • Construct or purchase business premises
  • Venture capital for new business
  • And certain other purposes

The various schemes essentially help disabled individuals become gainfully employed, and function independently. Loans are also granted for purchasing disability aids. NHFDC offers loans for mental as well as physical disabilities. Minors – individuals under 18 – may obtain loans under guidance of their parents or legal guardians.

The above 2 schemes are currently the only two schemes available for loans to disabled individuals. There are some variants that help disabled individuals open bank accounts and transact independently. Many banks also offer concessional services and reduced rates and charges for disabled individuals.

The information provided here is subject to change at any time. It is advisable to check the details of individual schemes from the concerned authority before making a decision.

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