Lok Sabha Question No. 5847 (UNSTARRED), answered on 2018-04-03
Subject: Loan for Disabled Persons through NHFDC
Ministry: SOCIAL JUSTICE AND EMPOWERMENT
Asked by: RAMA DEVI

## GOVERNMENT OF INIDA MINISTRY OF SOCIAL JUSTICE & EMPOWERMENT DEPARTMENT OF EMPOWERMENT OF PERSONS WITH DISABILITIES (DIVYANGJAN)

## LOK SABHA

UNSTARRED QUESTION NO.5847 TO BE ANSWERED ON 03.04.2018

## Loan for Disabled Persons through NHFDC

## 5847. SHRIMATI RAMA DEVI:

Will the Minister of SOCIAL JUSTICE AND EMPOWERMENT be pleased to state:

- (a) whether the National  Handicapped Finance and Development Corporation (NHFDC)under the Ministry is implementing various loan based and non-loan based  schemes for the benefit of the disabled persons;
- the targets fixed under the said schemes during the last three years and the extent to which these targets have been achieved, scheme-wise; and
- if so, the details and the objectives thereof;
- (d) the reasons for not achieving the targets with the corrective steps taken by the Government thereon? along

## ANSWER

## MINISTER OF STATE FOR SOCIAL JUSTICE AND EMPOWERMENT (SHRI KRISHANPAL GURJAR)

- (a) to (c):- Yes Madam, National Handicapped Finance and Development Corporation (NHFDC) is implementing the following schemes:-
- 1) Loan Based Schemes: Under   this   scheme, concessional loans are provided to Persons   with Disabilities (PwDs) for self-employment and higher education: These loans are made available to PwDs through various implementing agencies

The details of NHFDC schemes is enclosed at Annexure-I.

Details of the Targets allocated, funds released and number of PwDs benefited during the last three years under the NHFDC loan scheme are aS under

|         |                  |                | (Rs in crore         |
|---------|------------------|----------------|----------------------|
| Year    | Allocated Target | Funds released | No. of PwD benefited |
| 2014-15 | 94.00            |                | 14703                |
| 2015-16 | 124.00           | 131.08         | 20552                |
| 2016-17 | 108.37           | 107.51         | 16101                |

## 2) Non-Loan Based Schemes:

- i) Skill Training: throughout  the   country with of successful PwD trainees. The details of such NHFDC schemes is enclosed at Annexure-II:

The details of number of PwDs benefitted under the NHFDC skill training schemes during the last three years is at Annexure-III;

- ii) Scholarship Scheme: In addition to above; NHFDC had administered the Scholarship Scheme under the Trust Fund of Department of Empowerment of Persons with Disabilities for benefiting 2500 PwDs per year towards higher education (Scheme enclosed at Annexure-IV):

At present; since the Department of Empowerment of Persons with Disabilities (Divyangjan) , Ministry also implementing similar scheme on a larger scale, the Scholarship Scheme implemented by NHFDC has been closed w.e f December; 2017.

The details of number of PwDs benefitted under the said Scholarship Scheme; during the last three years is enclosed at Annexure-V.

- (d) i) The shortfall in loan disbursement target during 2016-17 was due to non-availability of viable proposals from implementing agencies

As a corrective measure, NHFDC has taken-up the issue with its implementing agencies to resolve the pending issues in implementation

Besides this, the issue has also been taken-up with various banks to sign agreements for extending concessional loans to PwDs under NHFDC schemes.

- ii) The   shortfall in  achieving   Scholarship  target  during 2016-17 was due to non-availability of

## The details of various schemes of NHFDC are &8 under

## A) Loan Schemes:

- i) For setting Up small business in Service/ Trading sector Loan up to Rs. 5.0 lakh for sales/trading activity and Rs. 7.50 lakh for service sector activity

Loan assistance provided for self-employment of disabled persons in service sector or for trading activity. The small business, project or activity, for which financial assistance has been sought, will have to be operated bby the disabled person himself:

- ii) For agricultural/allied Activities Loan upto Rs. 10 lakh:
- Loan assistance is   provided to disabled persons for agricultural production, irrigation, horticulture, sericulture, purchase of agricultural machinery/equipment for agricultural service, marketing of agriculture products etc.
- For purchase of vehicle for commercial hiring Loan upto Rs.1O lakh
- Purchase of vehicle for commercial hiring purpose
- iv) For setting up small industries unit Loan upto Rs.25 lakh:
- Loan assistance is provided to disabled persons for manufacturing; fabrication and production activity. The disabled person will be the owner / chief executive of the company.
- Scheme for Disabled Young Professionals:
- Loan upto Rs 25.00 lakhs to professionally educated trained disabled youths for self-employment
- Scheme for Developing Business Premises
- Loan upto Rs. 3.0 lakh to PwDs desirous developing business premises on their own land and starting self-employment activity.

## For self-employment amongst persons with Mental Retardation and Autism Loan upto Rs.1O lakh: vii)

- Persons with mental retardation or autism may not be able to enter into a legal contract required to avail loan from a financial institution In such cases following categories of persons are eligible for financial assistance from NHFDC on behalf of the mentally disabled persons for an income activity
- i) Parents of dependant mentally disabled person
- iii) Legal guardian of mentally disabled person
- ii) Spouse of dependant mentally disabled person

## viii) For technical education/training Loan limit Rs.10 lakh for study in India and Rs.20.0 lakh for study at abroad:

- To meet tuition and other fees/ maintenance cost/books and equipment for pursuing professional courses in a recognized educational institution in India and abroad.
- ix) Scheme for Pursuing Vocational Studies Loan upto Rs.2.0 lakh to Students   with Disabilities for pursuing vocational/ skill training courses:
- Scheme for Purchase of Assistive Devices Loan Rs.5.0 lakh for purchase of assistive devices including retrofittings which will enhance the   prospects of PwDs for their   employment/ selfemployment; upto
- xi) Scheme for NGOs for their capacity expansion Loan upto Rs: 5.0 lakh to NGOs   working in the area of disability single or multiple production activity on behalf of a group of PwDs
- xii) Micro Credit Scheme Loan Rs. 10.0 lakh to NGO, Rs.50,000/ per beneficiary 5% p.a: upto
- Application in the  prescribed format is to be submitted by interested NGOs to the State Channelizing Agency or directly to NHFDC for sanction of loan.

## xiii) Scheme for Parents Association for the Mentally Retarded Persons Loan upto Rs: 5.0 lakh

- Financial assistance is provided to Parents Association for the Mentally Retarded Persons to set up an income generating activity for the benefit of mentally retarded   persons: The nature income generating activity. will be such that it involves the mentally retarded persons directly and income will be distributed among the mentally retarded persons.

## B) Grant & other Schemes

- i) Assistance for Skills and Entrepreneurial Development Programmes

Financial assistant in the form of grant is provided to State Channelising Agencies/reputed institutions for imparting training to the disabled persons (15-50 year of age with 40% or more disability) to make them capable and self-dependent through proper technical training in the field of traditional and technical occupations and entrepreneurship. During the   training stipend Rs.2000/ per month also provides to disabled trainees,

- ji) Hand holding support to registered institutions for PwDs The registerd institutions are eligible for hand holding support of Rs.1,000/ - per PwD for extending information, support; guidance for procedural/documentation formalities to PwDs in obtaining loans or admission in training institutes upto
- Scholarship Scheme

NHFDC is also administering the Scholarship Scheme (Trust Fund): A total of 2500 scholarships are available per year towards higher education of student with disabilities. Student with disabilities can apply directly for scholarship on the website of NHFDC

## Eligibility Criteria

Any disabled person who fulfills the following criteria is eligible to financial assistance avail

- a) Indian Citizen with 40% more disability. Any or
- c) Relevant educational technical vocational qualification/ experience and background:
- b) Minimum age 18 years:

## Note

- In case of persons with mental retardation, age is relaxed to 14 years in of usual 18 years place
- In case of scheme for disabled young professionals age criteria is 18-45 years.
- In case of Education loan (a) is applicable. only

## Repayment Period (Loan Scheme)

- 1\_

- Scheme for self-employment & Maximum 10 years Parents Association scheme

- 2 Scheme for Education loan Maximum 7 years

- Micro Credit scheme

Maximum 3 years

## Rate\_of Interest (Loan Scheme except Education loan)

|      | Loan Amount                                | Tobe by SCAs to NHFDC paid   | Tobepaid by beneficiaries to SCAs   |
|------|--------------------------------------------|------------------------------|-------------------------------------|
| 1)   | Upto Rs 50,000/                            | 2%                           | 5%                                  |
| ii)  | upto Rs_ 5.0 lakh                          | 3%                           | 6%                                  |
| iii) | Above Rs. 5.0 lakh and upto Rs. 15.0 lakh  | 4%                           | 7%                                  |
| iv)  | Above Rs. 15,0 lakh and upto Rs. 25.0 lakh | 5%                           | 8%                                  |

Rebate

in all schemes (except education loan):

## Rate\_of Interest & rebate\_ Education loan):

Upto Rs. 20.00 lakh

1%

4%

Rebate

A rebate of 0.5% n interest is allowed to female students with disabilities in education loan scheme.

A special rebate\_ of 0.5% is also available for PwDs under VH/HH MR category under self-employment loans.

## Procedure of

Application duly filled in prescribed format is to be submitted to the SCA of NHFDC in respective State/UT. Loan Rs.10.00 lakh is sanctioned by SCA of  NHFDC and above Rs.10.00 lakh is recommended by SCA and forwarded to NHFDC for sanction. The loan application can also be submitted to additional implementing agencies of NHFDC like RRBs and upto

## 2.

## Objective

The objective of the scheme is to provide training to the disabled persons to make them capable and self-dependent through proper technical training in the field of traditional and technical occupations and entrepreneurship; Financial assistance in the form of grant is provided for conducting/ sponsoring the training

- Through the State Channelsing Agencies, where the training is sponsored by such Agency
- Through the Bank implementing NHFDC schemes, where the training is sponsored by such bank
- Though the training institute/ organisation, where the training is conducted by NHFDC by hiring the services of reputed national/state level institution directly.

The scope of the scheme is limited to

- ii) beneficiaries who have been sanctioned loan and are awaiting to receive loan;
- beneficiaries who have received loan from NHFDC through the SCA/Bank implementing NHFDC schemes and are successfully pursuing their income generating activity:
- iii) potential beneficiaries who wish to avail loan from NHFDC and fulfill the eligibility criteria for availing loan:

## 3\_ Eligibillty

The beneficiaries should be in the age group of 15-50 years and fulfill the other eligibility criteria for availing loan from NHFDC;

## 4 Duration of Training \_

Upto 12 (twelve) months:

## 5 Amount of Grant

- i) 100% of the total recurring cost of the training programme is provided by NHFDC
2. ii) Stipend The recurring training cost shall include a stipend of Rs\_ 500/ - per week per trainee i.e Rs 2000/ per month to the trainee to cover the cost of transportation and other incidental expenses. The   training institute/SCA shall release the stipend in favour of the trainee through A/c payee cheque only.

## 6. Procedure for Obtaining Financial Assistance

The training proposal is to be submitted to National Handicapped Finance and Development Corporation by the State Channelising Agency/Bank implementing NHFDC schemes; wherever, such agencies sponsor the training: Reputed National/State level training organisations may also directly approach NHFDC their  training proposal. The training   proposal is to be prepared in accordance with the guidelines for preparation of training proposal under the scheme:

## SCHEME FOR FINANCIAL ASSISTANCE FOR SKILL & ENTREPRENEURIAL DEVELOPMENT

## 7 Training Institute ~Information/ Documents to be furnished

## A) Training through Government training Institutes:

In the case of training proposal envisages the training to be conducted by Government Training Institutes like Industrial Training Institute (I.T.I), Polytechnic, Engineering College, Agriculture University, National Institute for Entrepreneurialship and Small Business Development etc , brief details about such organisation and training facilities available wlth them should be furnished to NHFDC:

## B) Training through reputed Private training Institutes:

If the training proposal envisages involving reputed private training institutes; profile of the institute, its past record particularly training conducted for the disadvantaged section of the society etc should be submitted to NHFDC For conducting training for visually and speech & hearing impaired, the facilities of the institute should be examined and indicated in the training proposal.

Provided that the conditions at (A) and (B) above shall not apply; where NHFDC directly hire the services of the training institutes for conducting the training:

## 8. Inclusive Training:

Persons with Disabillties can also be included in regular batches of scheduled training alongwith non-disabled persons: In such cases, the number of Persons with Disabilities and the nature of their disability should be clearly indicated,

## Annexure-III

## Details of Skill Training conducted during last 3 year by NHFDC

Lakh) (Rs.

| FY 2014-15                        | FY 2014-15     | FY 2015-16                         | FY 2015-16     | FY 2016-17                         | FY 2016-17     |
|-----------------------------------|----------------|------------------------------------|----------------|------------------------------------|----------------|
| Total Amount Sanctioned/ Utilized | Totel Trainees | Total Amount Sanctioned / utilized | Total Trainees | Total Amount Sanctioned 1 Utilized | Total Trainees |
| 1002.75                           | 9356           | 2882.00                            | 17637          | 2203.00                            | 18455          |

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## Annexure IV

## SCHOLARSHIP SCHEME II \_ FOR 2500 DIFFERENTLY ABLED STUDENTS (To be funded out of Trust Fund for Empowerment of Persons with Disabilities)

## 1. Objective:

- 1.1 The objective of the Scheme is to provide financial assistance to the differently-abled students to enable them to or technical courses from recognized institutes and get employed/self-employed:
- 1.2 Differently-abled students face several barriers physical, financial, psychological, mental In pursuing studies and Ilving with dignity. At times such students are deprived of harnessing their latent skills and thereby miss the opportunity to earn their livelihood and find a dignified place for themselves in the society. This scheme envisages encouraging differently-abled students by providing scholarships and other assistance to pursue professional or technical courses and various skill development courses for their empowerment:

## 2\_Number\_of Scholarships:

- 2.1 To start with every year 2500 scholarships will be provided to the differently-abled students throughout the country. 30% scholarships will be reserved for girls, which will be transferable to male students in case of non-availability of female candidates:

## 3. Scope:

- 3.1 These scholarships will be available for studies in India, by all differently-abled students who are covered under the Persons with Disabilities (Equal Opportunity, Protection of  Rights and Full Participation) Act; 1995 and the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Nationals will be' eligible for scholarships.

## 4. Rate of Scholarshipand other \_benefits\_under the scheme:

- 4.1 The following benefits will be available under the scheme:
- Non-refundable fees shall be fully awarded in case of  Government/Government-aided institution. In case of private Institutes the reimbursement would be restricted to similar courses in Government/Government-aided institutions.
- Maintenance allowance will be paid to the students for a period of 10 months only in one academic year at following rates

| Class/Course                  | Class/Course                  | Maintenance allowance (Rs. per month)   | BookStationery allowance (Rs: Per annum)   |
|-------------------------------|-------------------------------|-----------------------------------------|--------------------------------------------|
| Professional Graduate Courses | Professional Graduate Courses | 2500/-                                  | 6000/                                      |
| Professional courses          | Post-Graduate                 | 3000/-                                  | 10000/-                                    |

- (iii) Differently-abled students, in addition will be provided aids and appliances, only once during

## Orthopedically Handicapped

|    | Appliance         | Estimated Cost (up to)   |
|----|-------------------|--------------------------|
|  1 | Laptop or Desktop | Rs: 40,000               |

## (i) Visually Handicapped

| SNo:   | Appliance                                        | Appliance                                        | Estimated cost (up to)   | Remarks        |
|--------|--------------------------------------------------|--------------------------------------------------|--------------------------|----------------|
| 1      | Brailler Brailler Typewriter                     | Brailler Brailler Typewriter                     | Rs: 10,000               | For blind      |
|        | Laptop or Desktop with   Screen reading software | Laptop or Desktop with   Screen reading software | Rs. 40,000               | For blind      |
| 3_     | Laptop or Desktop Magnification software_        | Screen                                           | Rs: 60,000               | For low vision |

## (iii) Hearing Handicapped

|    | Appliance                                                                       | Estimated cost (up to)   |
|----|---------------------------------------------------------------------------------|--------------------------|
|  1 | Binaural digital programmable hearing aid with annual provision of button cells | Rs 50,000 + Rs 3600 p.a: |
|  2 | Cell phone with SMS SIM card                                                    | Rs 5,000                 |
|  3 | Laptop or Desktop with WiFi (Blue tooth) facility                               | Rs 70,000                |

## 5.1 Conditions for Scholarship:

- Financial assistance will be given to pursue degree and/or post graduate level technical and professional courses from a recognized institution. Maintenance, book/stationary allowance and grant for purchase of assistive devices will be credited to the student's account Nonrefundable fees shall be reimbursed to the student on production of proof of deposit of fees or will be directly to the Institute under Intimation to the student: paid
- ii) Scholarship will be awarded for only one course at a time.
- iii) Students who get admission to a college to pursue technical/professional courses, on the basis of a competitive examination will be eligible for the scholarship without any consideration of percentage of marks at higher secondary/graduation level.
- iv) Students who get admission in technical/professional courses without facing any competitive examination will also be eligible for scholarship: However; such students should have not less than 50% marks at higher secondary/graduation level. Selection of these students will be done strictly on merit basis. In case of female students should have not less than 45% marks at higher secondary/graduation level:

Cont'd\_P/3

- Students who pursue their education through correspondence would also be eligible for the scholarship:

- vi) Continuation of the scholarship in subsequent years, subject to successful completion of the course during the preceding year: However, grace  period shall be admissible for Girl Students and Students failing in category C-4 is of two years and for all other categories is for one year W.e.f: the academic year 2014-15.
- vii) A candidate who is awarded scholarship for one course, after its completion will be eligible for another course too. However; the awardees will not be eligible for a similar or equivalent course:
- viii) A scholarship holder under this Scheme will not avail any other scholarship/stipend for pursuing the course.
- ix) The annual Income of the beneficiary/parent or guardian of beneficiary should not exceed Rs.3.00 lakh from all sources: However, preference shall be given to economically weaker students:

## 5.2 Other Conditions for the Scholarship:

- The scholarship is depended on the satisfactory progress and conduct of the scholar; If it is reported by the head of the Institution at any time that a scholar has by reasons of his/her own act of default failed to make satisfactory progress or has been guilty of misconduct such as or participating  in strikes,  irregularity in attendance  without the permission of the authorities concerned etc , the authority sanctioning the scholarship may either cancel the scholarship or stop or withhold further payment for such period as it may
- If a student is found to have obtained a scholarship by false statement; his/her scholarship will be cancelled forthwith and the amount of the scholarship paid will be recovered. The student concerned will be blacklisted and debarred for scholarship in any scheme forever.
- A scholarship awarded may be cancelled if the scholar changes the subject of the course of study for which the scholarship was originally awarded or changes the Institution of study without prior approval of the Government The amount already may also be recovered at the discretion of the Government: paid
- iv) A scholar is liable to refund the scholarship amount at the discretion of the Government if during the course of the year; the studies for which the scholarship has been awarded; is discontinued by him/her.
- Scholarship will not be for the period of internship/housemanship in the MB.B.S course or for a practical  training in any course, if the student is in . receipt of some remuneration during the internship period or some allowance/stipend during the practical training in any course: paid
- vi) The conditions can be changed at anytime at the discretion of the Government of India.

## 6. Publicity of the Scheme

The Scheme will be given wide publicity over print and electronic media: Assistance of  State Governments and other agencies such as UGC, Unlversities and prominent colleges and institutions will also be sought in giving publicity to the Scheme.

Cont'd\_P/4

## 7 . Procedure for application

- 7.1 Application in enclosed prescribed format shall be submitted at any time during an academic year to the assigned agency (i.e. National Handicapped Finance and Development Corporation, Red Cross Bhawan, Sector-12 , Faridabad, Haryana 121007 or PHD House, 4/2, 3rd   Floor, Siri Institutional Area August Kranti Marg, New Delhi-110016): An advance copy of the application should also be submitted online (NHFDC website WWW\_ nhfdc.nicin): Each applicant shall be given a registration number on receipt of the application: The screening committee shall examine these applications quarterly and the scholarship amount will be disbursed.
- 7.2 Renewal of the scholarship in next year is subject to successful completion of the course in the previous year: However; grace period shall be admissible for Girl Students and Students failing in category C-4 is of two years and for all other categories is for one year W.e.f. the academic year 2014-15.

However; in case of students with cerebral palsy, mental retardation, mental illness, multiple disabilities and profound server hearing impairment; one year grace period may be allowed:

- 7,3 Along with the application the following enclosures will have to be furnished:
- Academic record attested copies of relevant certificates/mark sheets for the qualifying examination:
- (ii) . Proof  of annual income Proof   of income shall include of parent/guardian, acknowledgement of income tax/income certificate e from revenue official/ gazetted officer/ public representative eg MP, MLA, MLC, Panchayat officials etc;;
- Disability certificate;
- (iv): Course fee receipt if any, duly paid during the academic session;
- Receipt/Invoice of eligible assistive devices duly countersigned by the authorized signatory of the institution;
- (vi): In-case of continuation of scholarship in a succeeding year, a copy of the mark sheet of the preceding year:

## 8. Processing of\_applications

- (a) The procedure for processing of applications will be outsourced to a reputed agency;
- (b) AIl the applications will be processed in a time bound manner;
- (c) The  applications   scrutinized by the authorized agency shall be   placed before screening committee periodically for final award of scholarships;
- (d) Income certificate is to be submitted by the student only once i.e. at the time of sanction of scholarship,

## Annexure-V

## Scholarships disbursed under Trust Fund Scheme

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