Making thejump 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 anew business. Owning a business is really a tough task for anyone, but thereare additional difficulties with owning a business when you are disabled.

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

Here we havecome up with some potential resources to help ensure your disability is nolonger and impediment to accomplishing your entrepreneurial goals.

Grantsfor Disabled Small Business Owners

There areseveral grants that provide financial assistance to disabled small businessowners. Start with the government associations, check the terms and conditionsand apply for the grant. You can also start investigating private foundationsand organization as many provide private funding of grants for disabledbusiness owners.

Loansfor Disabled Business Owners

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


NationalHandicapped Finance and Development Corporation offers finance for disabledentrepreneurs through the State Channelizing Agencies nominated by therespective startups governments and Union Territories. NHFDC provides loan forvarious business related activities that include purchase of commercialvehicles, agriculture activities, industrial purposes, and for professional andtechnical higher education

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

One of the provisions that the government has made for the business loanof this kind reduces the rates of interest. The loancomes 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 fromthe above reduction, there is an additional 1% reduction in the interest ratesfor women, if they are a part of the Mahila Samridhi Yojana. Young disablewomen can get a further 1% rebate on showing the proper documents.

Whatare the Eligibility Criteria?

There are afew conditions that a person with a disability has to meet to get the businessloan under NHFDC:

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


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

Howto Apply for a Business Loan form NHFDC

To apply fora business loan from NHFDC, you must have all the documents ready to proveyours. Major documents for the loan include voter's ID for citizenship and ageproof, Aadhar card, educational qualification certificate, and hospital recordsthat show a minimum of 40% disability. Besides, if you have taken a loanearlier, present documents related to previous educational loans. Once you haveall these documents, you can apply through a format using State ChannelizingAgency.

When itcomes to funding resources for disabled entrepreneurs, business loans by theIndian government are a great initiative and a part of encouragement that manysuch people have stood to benefit from it largely and have a successfulbusiness of their own.

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