Personal Loan for Physically Challenged


Availing a personal loan for physically challenged or handicapped persons can be complicated since not all banks offer any specific offering to applicant eligible under this category. However, government of india is offering funds to a handicapped borrower through NHFDC (National Handicapped Finance and Development Corporation). Apart from that, the borrower can also avail funds from Bank of India and Vijaya Bank who are offering dedicated personal loan schemes.

Personal Loan for Handicapped at a glance
Interest Rate 4% - 9.95% per annum
Loan Tenure 12 Months - 10 Years
Maximum Amount Rs. 5 Lacs
Age Limit 18 to 60 Years

Personal Loan Offers for Physically Challenged

Banks/FIs Annual Interest Rates Maximum Amount
BOI Star Mitra Personal Loan 9.95% per annum Rs. 1 Lac
Vijaya Bank Personal Loan 4% per annum Rs. 15,000
NHFDC Personal Loan 4% - 6% per annum Rs. 5 Lacs

BOI Personal Loan for Physically Challenged (Star Mitra Personal Loan)

Bank of India (BOI) offers personal loans to all kind of physically challenged persons including salaried, self-employed and minors to purchase a durable product, and sophisticated aids and appliances to help their physical and social rehabilitation. Although, minors can only apply for this personal loan with their parents or guardians. Whereas, middleman and NGOs are kept away from this scheme.

An eligible borrower can avail a maximum loan amount of Rs. 1 Lac, whereas there is no cap on minimum loan amount. Depending upon the current income or salary, a salaried borrower can get finance of upto 10 times of his/her current net monthly salary, whereas a self-employed borrower can get finance upto 50% of his/her net annual income as defined in the latest ITR. However, in any case, the maximum loan amount for an eligible borrower will be depending based on that the monthly EMI amount including the proposed EMI should not be more than 60% of the net income/salary.

The applicable interest rate is equal to 9.95% per annum along with processing charges equal to 2% of the sanctioned loan amount, subject to minimum Rs. 1000 to maximum Rs. 10,000. Although, the senior citizen (above the age of 60 years) are waived from processing fee charges.

The repayment period offered is same as regular personal loan, ranging from minimum 12 months to maximum 60 months, where the monthly repayments will start after 3 months of first disbursal only in case of partial disbursal. Otherwise, one month from the date of disbursal in regular cases.

Eligibility for BOI Personal Loan for Physically Challenged:

  • Applicant should be able to pay 10% margin money from his/her own funds.
  • Applicant must be at least 21 years old at the time of loan application.

Vijaya Bank Personal Loan for Physically Challenged (Differential Rate of Interest Scheme)

Vijaya Bank offers personal loan of upto Rs. 15,000 to physically challenged borrowers under “Differential Rate of Interest” scheme as sponsored by the government of india. The interest rate applicable by vijaya bank is equal to 4% per annum.

An eligible borrower under this scheme, must be involved in the field of cottage and rural industries and vocations etc. like spraying of pesticides, including poor and needy students of merit going for higher education who do not get scholarships/maintenance grants from Government or educational authorities. Moreover, physically challenged persons pursuing any gainful employment can also avail funds under this scheme.

As for tenure is concerned, it ranges upto maximum of 5 years.

Eligibility for Vijaya Bank Personal Loan for Physically Challenged:

  • Applicants living in metropolitan location or urban/semi-urban areas, must not have a total family income of more than Rs. 7,200 per month.
  • Applicants living in rural areas, must not have a total family income of more than Rs. 6,400 per month.

Personal Loan for Physically Challenged by NHFDC

NHFC (National Handicapped Finance and Development Corporation) offers personal loan to physically challenged applicants including the mentally retarded person who can avail funds through parents, spouse or a legal guardian. An eligible applicant involved in agricultural activities, can avail loan amount of upto Rs. 5 Lacs. The annual interest rate applicable under this scheme is equal to 5% where the availed loan amount is equal to or less than Rs. 50,000, whereas the annual interest rate of 6% will be applicable if the availed loan amount is above Rs. 50,000 to upto Rs. 5 Lacs. Moreover, if the applicant is a woman, then she will be offered a concession of 1% in interest rate.

As for the loan tenure is concerned, the borrower can repay the amount within as long as 10 years. The borrower can apply for the loan at any branch of Punjab & Sind Bank and Oriental Bank of Commerce.

Eligibility for NHFDC Personal Loan for Physically Challenged:

  • Applicant must be 40% or more disabled in order to be eligible under this scheme.
  • Age of the borrower should be at least 18 years at the time of loan application, and maximum 60 years at the time of loan maturity.
  • The annual income of an applicant living in urban areas, should not be more than Rs. 5 Lacs per.
  • The maximum annual income of applicants living in rural areas, should not be more than Rs. 3 Lacs.
  • Applicant must have relevant educational, technical or vocational qualification, or experience and background.


  • Doctor’s Certificate stating the extent of handicap and the need for the equipment.
  • Quotation/Invoice in respect of the equipment to be purchased.
  • Stamped receipt to be submitted after purchase of the equipment.
  • Hypothecation document for the equipment purchased.
  • Proof of Identity & Residence
  • Documents for any existing obligations.