Startup City Magazine
A monthly magazine for business startups and young entrepreneurs.




Making the jump to self employment is a daunting with fear of losing a regular income glory, negotiating changes to existing benefits and finding the capital to set up a new business. Owning a business is really a tough task for anyone, but there are additional difficulties with owning a business when you are disabled.

Apart from the normal business expenses, disabled business owners have to go through many other financial hardships due to their disabilities that can make operating a small business even tougher. But being your own boss is the best choice for both the disabled and career as a way of finding work with flexible hours that can be tailored to meet your individual requirements.

Here we have come up with some potential resources to help ensure your disability is no longer and impediment to accomplishing your entrepreneurial goals.

Grants for Disabled Small Business Owners

There are several grants that provide financial assistance to disabled small business owners. Start with the government associations, check the terms and conditions and apply for the grant. You can also start investigating private foundations and organization as many provide private funding of grants for disabled business owners.

Loans for Disabled Business Owners

Apart from the grants for disabled business owners, there are wide assortments of loans available for disabled business owners. Although, here you need to repay the amount of money loaned to you, whereas, you do have to repay awarded grant money.


National Handicapped Finance and Development Corporation offers finance for disabled entrepreneurs through the State Channelizing Agencies nominated by the respective startups governments and Union Territories. NHFDC provides loan for various business related activities that include purchase of commercial vehicles, agriculture activities, industrial purposes, and for professional and technical higher education

This organization is mainly focused on facilitating the smooth functioning of the whole process and to make sure that disabled people are empowered economically.

One of the provisions that the government has made for the business loan of this kind reduces the rates of interest. The loan comes for the tenure of up to 7 years and individuals can get a rebate of 0.5% on the interest after doing on time payment.

Here is the list of interest rates as specified by the NHDFC:

                                                   Interest Rate 2019
Loan Amount less that or up to Rs. 50,000 5%
Between Rs. 50,000 – Rs. 5 lakh 6%
Between Rs. 5 lakh – Rs. 15 lakh 7%
Between Rs. 15 lakh – Rs. 25 lakh 8%

Apart from the above reduction, there is an additional 1% reduction in the interest rates for women, if they are a part of the Mahila Samridhi Yojana. Young disable women can get a further 1% rebate on showing the proper documents.

What are the Eligibility Criteria?

There are a few conditions that a person with a disability has to meet to get the business loan under NHFDC:

  • Individual should be Indian citizen having minimum 40% disability
  • Applicant should be more than 18 years old.
  • The person must hold a professional degree from an educational organization
  • The business loan that is being sought for should comply with the educational degree that is held
  • The business should be legal and approved under the CGS
  • If a person under NHFDC has already applied for an educational loan, he or she can still go for a business loan, under the criteria that the combined amount should not exceed 25 lakhs
  • Under this plan, preference is given to women applicants
  • Applicant should be a member of Thrift and Credit Group (Self Help Group)
  • Calculate Your Monthly EMI on – Business Loan EMI Calculator

Repayment Tenure

The tenure for the repayment of the loan is very long which provides enough time to pay the amount and earn the capital back according to convenience. NHFDC has fixed a minimum of 3 years for the repayment and the maximum offered is up to 10 years under different schemes for differently-able people.

How to Apply for a Business Loan form NHFDC

To apply for a business loan from NHFDC, you must have all the documents ready to prove yours. Major documents for the loan include voter’s ID for citizenship and age proof, Aadhar card, educational qualification certificate, and hospital records that show a minimum of 40% disability. Besides, if you have taken a loan earlier, present documents related to previous educational loans. Once you have all these documents, you can apply through a format using State Channelizing Agency.

When it comes to funding resources for disabled entrepreneurs, business loans by the Indian government are a great initiative and a part of encouragement that many such people have stood to benefit from it largely and have a successful business of their own.

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