Divyangjan Swavalamban Yojana

Divyangjan Swavalamban Yojana in India

What is Divyangjan Swavalamban Yojana?

Divyangjan Swavalamban Yojana Scheme is for Persons with Disabilities

1. Purpose:

The purpose of providing concessionary credit for people with disabilities (as defined in the PWD Act, 2016 or its amendments) shall be:

  • Engage in any activity that will contribute directly or indirectly to the income generation and empowerment of disabled people.
  • Following a 12th-grade education (undergraduate courses, graduate courses, and other programs approved by the UGC/AICTE/CAR/government, etc.)
  • A path to the development of vocational or skill skills (ITI, Diploma, or other courses that leads to a career enhancement or self-employment).
  • Conversion of available machines, equipment, or vehicles to disabled-friendly modes through the purchase or filming of any modification or retrofitting of the active device.

2. Objective:

This scheme provides concessional loans to empower economically and socially less advantaged disabled people.

3. Eligibility Criteria:

A person with 40% or more disability (as defined by the PWD Act, 2016 or amendments to it) who is an Indian citizen.

Age above 18 years. However, in the case of people with mental retardation, the eligible age would be above 14 years. The age would not be required for educational loans. Any document issued by a government agency would be required. A certificate of age issued by a competent authority authorized by the State Government or in the 10 certificates or any other government-issued document would be needed.

4. Rate of Interest for lending :

In the absence of specific rates in the respective loan scheme, the NHFDC will extend simple interest rates as follows:

S. NoLoan amount
(Rs.in lakhs)
Rate Interest
margin (%)
Rate of
Interest to
PwDs (%)
1less than 0.50 235
2Above 0.50 – 5.0336
3Above 5.0 - 15.0347
4Above 15.0– 30.0 448
5Above 30.0-

5. Amount of Loan:

The maximum amount of concessional credit available under various NHFDC schemes would be Rs. 50.0 lakhs per beneficiary unit. The actual loan amount, up to Rs. 500 ks, will be determined by implementing agencies based on the needs of the activity project being funded as well as the borrower’s repayment capacity over the medium repayment period.

6. Type of loan:

There are other types of loans that can be arranged, such as term loans, working capital loans, and promoter contributions to loans being approved by other financial institutions.

7. Repayment of loans:

SCAs would be at liberty to devise an activity-wise repayment schedule within an overall limit of 10 years from the date of disbursement of the loan.

8. Prepayment:

The borrower can repay the loan at any time after the commencement of repayment without having to pay any prepayment charges.

9. Security:

In order to further secure the loan, implementing agencies should strive to seek requisite security as per their respective policies and may also try to cover any portion of the loan not covered by a source country through Concessionary Government Guarantee schemes. Implementing agencies may also consider co-opting a family member, as defined in the Companies Act, as the applicant for the loan.

The implementing agencies should ensure that the assets and beneficiaries are adequately insured. The beneficiaries’ insurance coverage should be total under various insurance schemes implemented by Central and State government insurance companies for the weaker sections. The cost of asset insurance should be included in the project cost and funded accordingly.

10. Procedure for Obtaining Loan & other terms & conditions:

The National Handicapped Finance and Development Corporation will issue a loan sanctioned upon an application submitted in the prescribed format as per its procedures and general terms.

11. Rights of NHFDC:

OMD, NHFDC’s decision will be binding and final if there is a dispute.

12. Other Terms and Conditions:

The NHFDC has issued guidelines for credit-based funding schemes. Other terms and conditions for the scheme apply.

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Harsh Kumar
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