Students with disabilities deserve the opportunity to pursue higher education. Education loans for disabled students help them fulfill their dream of pursuing higher education at a well-reputed university. These loans are designed to benefit disabled students, making them available at concessional interest rates. These loans are primarily offered by the National Divyangjan or Handicapped Finance and Development Corporation (NDFDC or NHFDC) in India.

This article explores the key insights of education loans for students with disabilities. We have included the information about lenders offering these loans, along with their terms and eligibility criteria.

Education Loan for Students with Disabilities

As the name suggests, these are education loans offered to students who are physically challenged or disabled. These loans provide financial aid for students with disabilities to pursue higher education in India as well as abroad. An education loan for disabled students helps them cover various expenses associated with pursuing higher education. 

Student Loan for Disabled Students: Lenders and Schemes

An education loan for students with disabilities in India is primarily provided by the National Divyangjan Finance and Development Corporation (NDFDC). The National Divyangjan Finance and Development Corporation (NDFDC), formerly known as the National Handicapped Finance and Development Corporation (NHFDC), is a not-for-profit company wholly owned by the government of India.

The NHFDC or NDFDC has implemented various schemes to provide financial aid to people with disabilities (PwD). They provide financial assistance for various activities that benefit people with disabilities (PwD). NHDFC provides an education loan for students with disabilities through its State Channelizing Agencies (SCAs). Let’s look at the NHDFC loans for disabled students.

NHDFC Loan for Education

The NHDFC provides education loans under its “Divyangjan Swavalamban Yojana” scheme. They provide education loans for Indian citizens with 40% or more disability. The NHDFC loan makes higher education affordable for students with disabilities. Students with disabilities can use these disability loans to pursue higher education at a recognized university in India or abroad.

Who offers Student Loans for Disabled Students in India?

As we have discussed earlier, the NDFDC, previously NHFDC, primarily offers education loans for disabled students in India through their State Channelizing Agencies(SCAs). They offer student loans for disabled students through various banks and financial institutions that have signed an agreement with them. The banks that provide education loans for disabled students through NHDFC include:

  • Punjab National Bank (PNB)
  • IDBI Bank
  • Union Bank of India
  • Jammu and Kashmir Bank
  • And 16 other Regional Rural Banks (RRBs) in the states of Andhra Pradesh, Assam, Jharkhand, Haryana, Uttar Pradesh, Maharashtra, Madhya Pradesh, Gujarat, Kerala, and Tripura that NHDFC has signed an agreement with.

Obtaining an education loan to fund your studies can be quite challenging, with different lenders offering varying options. Contact WeMakeScholars, an organisation partnered with over 15 public and private lenders. When you apply for an education loan through us, our experienced team will help you find the most suitable loan for your higher studies. Request a callback today to contact our team.

Features of Education Loan for Disabled Students

  • Education loans for disabled students are offered to Indian citizens with 40% or more disability.
  • Since these loans are offered for the benefit of disabled students, they are offered at concessional interest rates.
  • These loans are offered for students to pursue higher education after class 12.
  • NHDFC loans promote the employment of disabled persons by helping them pursue higher education.

Expenses Covered under Handicapped Loans for Students

The expenses covered under a student loan for disabled students include:

  • Tuition fees of the college.
  • Examination fees.
  • Library/ laboratory fees.
  • Living expenses.
  • Cost of study material.
  • Cost of a laptop or other course-relevant equipment.
  • Other miscellaneous expenses associated with higher education.

Important Terms of Education Loan for Disabled Students

The following are important terms of education loans from NHDFC for disabled students:

Interest Rate for Education Loans for Disabled Students

Education loans for students with disabilities from NHFDC are offered at a concessional interest rate of 4% per annum.

Loan Amount for Student Loan for Disabled Students

The maximum loan amount offered by an NHDFC education loan for students with disabilities is up to ₹50 lakhs. Students with disabilities can use the funds from this loan to pursue higher education in India as well as abroad. However, the actual loan amount within this limit will be decided by the bank through which the student takes the education loan.

Repayment Terms of Education for Disabled Students

The repayment terms, such as the repayment tenure and the moratorium period, of the education loan for disabled students can vary bank. These terms are decided by the lender that the student is taking an education loan from. However, most lenders offer a moratorium of the course duration plus 6 to 12 months and a repayment tenure of 10 to 15 years.

Eligibility Criteria of Education Loan for Disabled Students

The following are the eligibility criteria of NHDFC education loans for students with disabilities:

  1. Students Eligibility: An Indian citizen with a disability of 40% or more and possessing a Unique Disability ID (UDID) is eligible to apply for this loan.

  2. Course Eligibility: Undergraduate, postgraduate, and professional courses are eligible for these loans.

  3. Age: There is no age criterion for education loans from NHDFCs.

The rest of the eligibility criteria, including the co-applicant eligibility, admission status, academic history, and university ranking, depends on the bank through which the student takes an education loan from.

Documents Required for Education Loan for Disabled Students

The documents required for an education loan for students with disabilities vary by lender. However, the following are the basic documents required by most lenders for education loans for disabled students:

  1. KYC Documents: 
    Documents proving the identity and address of the student and their co-applicant. They can include:
    • A photo ID proof(Aadhaar card, Voter ID, Driving license, etc.)
    • PAN card 
    • Passport. 

  2. Admission Letter:
    Students should submit an admission letter from the university proving their acceptance into the university. 

  3. Previous Academic Records:
    Students should provide their previous academic records, such as the 10th and 12th marksheets.

  4. Collateral Documents: 
    While taking an education loan, applicants should submit all the collateral documents required by the lender. 

  5. Financial Documents of the Co-applicant:
    Documents that prove the income and creditworthiness of the financial co-applicant are required. These documents can vary depending on whether the co-applicant is salaried or self-employed.

  6. Additional documents:
    Lenders can also require other documents such as:

    • A complete application form for an education loan for disabled students.

    • A declaration form confirming that students have not taken an education loan from other lenders.

    • Passport-size photos of the applicant and the co-applicant

    • Applicable test score results, such as CAT, IELTS, TOEFL, and GRE.

How to Apply for an Education Loan for Disabled Students

The application process for an education loan for students with disabilities from NHDFC is delegated to the banks through which these loans are offered. Hence, the application, sanction, and disbursement processes for these loans vary by lender.

The education loan application process for disabled students can be confusing, especially without the right information. This is where WeMakeScholars can help. With our experience guiding thousands of student loan profiles, our financial officers can assist you in securing the best education loan for your studies in India or abroad. Request a callback today for a simple and fast loan process.

Conclusion 

Every student deserves education irrespective of their disabilities and background. Education loans for disabled students help them fulfill their dream of pursuing higher education. These loans help students with disabilities find more employment opportunities. 

In this article, we have discussed education loans for students with disabilities in India. We have covered the information on schemes and lenders offering these loans, along with their eligibility criteria and documents required to help you make an informed decision.