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|
|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|
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.
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.
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.