The Indian Government with the help of the Department of Empowerment of Persons with Disabilities, has been working tirelessly to ensure an improved quality of life for disabled people, especially through economic rehabilitation. To this end, numerous banks, along with the National Handicapped Finance and Development Corporation (NHFDC) have come up with a wide range of special Low Interest Rate Personal Loans as well as home loans that offer the much-needed boost for the disabled to carve out a fulfilling life for themselves! 

NHFDC Scheme for Disabled Young Professional

The NHFDC has recently rolled out a plan with the objective of assisting the professionally educated unemployed disabled youth. 


Known as the Scheme for Disabled Young Professional, this plan offers quick and convenient Personal Loans to people who fulfill the following eligibility criteria:

  • The applicant is an Indian citizen, with a disability of 40% or above.
  • The applicant must be between 18 and 60 years of age.
  • The applicant has a professional degree granted by a recognised institute or university.
  • The income of the applicant is less than Rs. 5 Lakhs per annum in Urban Areas, and Rs. 3 Lakhs per annum for rural areas. 

Loan Amount

To get an approval on the loan application, it is mandatory that the purpose for which the loan is being taken,has a direct relevance to the professional degree of the applicant.

The loan is generally offered for the following purposes:

  1. Setting Up a Small Business

In this case, a loan of up to Rs. 3 Lakhs is offered. If the business involves transport-related activity, the maximum loan amount is extended to Rs. 5 Lakhs.

  1. Setting Up a Small Industrial Unit

In this scenario, the applicant may expect a loan of up to Rs. 5 Lakhs.

  1. Self-Employment (Amongst people with Mental Retardation, Cerebral Palsy and Autism)

In this case, the NHFDC offers a loan of up to Rs. 3 Lakhs.

  1. Carrying out Agricultural Activities

For this purposes, a loan of up to Rs. 5 Lakhs can be expected.

  1. Education and Training

For studies within India, a loan of up to Rs. 10 Lakhs is offered. For studies abroad, the maximum loan amount is Rs. 20 Lakhs.

The NHFDC also offers financial assistance for Entrepreneurial Development.

Interest Rates

For a loan amount of up to Rs. 50,000, the interest rate is 5%.

For a loan amount between Rs. 50,000 and Rs. 5 Lakhs, the interest rate is 6%.

For a loan amount exceeding Rs. 5 Lakhs, the interest rate is 8%. 

Repayment Period

The repayment period for loans granted by the NHFDC ranges from 1 year to a maximum of 10 years. 


The NHFDC does not offer any subsidies; however, disabled women are entitled to a rebate of 1% on the interest.


BOI Star Mitra Personal Loan

Offered by Bank of India, Star Mitra Personal Loan is yet another credit alternative that has been initiated with the objective of helping physically challenged people to be able to move and function independently. The loan amount disbursed through this scheme can be used for purchasing durable aids and appliances that can help in the rehabilitation of the disabled person.

One of the most imperative benefits of this loan is that it does not entail any processing fee. 


In order for to avail this loan, the applicant must meet the following requirements:

  • They should be an Indian citizen with a disability of 40% or more.
  • They should be salaried or self-employed.

If the loan is needed to offer assistance to physically challenged minors, their parents/legal guardians must apply for the same. 

Loan Amount

Under the Star Mitra Scheme, BOI disburses a maximum amount of Rs. 1 Lakh, although this amount is constrained by the income of the applicant. For salaried individuals, the loan amount is capped at 10x of the net salary, while in case of self-employed professionals or business owners, the maximum amount is 50% of the net annual income as indicated by the income tax returns.

In order to be eligible for the loan, the net take-home income, after the payment of the equated monthly instalment (EMI) should be 40% or more of the total income.

In the case of minors, all the calculations are done considering the earnings of the parents or the legal guardians. 

Repayment Period

The EMIs towards the repayment of this loan commences one month after the full disbursement of the loan amount. The applicant can choose to repay the amount along with the interest in 12 to 60 months, as indicated in the loan agreement. 


The physical aid or the appliance purchased with the help of the loan amount acts as collateral for this loan. 

Interest Rate

This Personal Loan is offered at a discounted rate of interest, which is essentially the base rate + 1%. At present, this rate is 10.70%. It must be duly noted that it is a fixed rate, compounded monthly.

We hope that you are now aware of the Best Low interest Rate Personal Loans Available in India for the disabled.

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