Financial Support Available for the Physically Challenged People

There are about 70 million physically challenged people in India, out of which only 2% are educated and 1% employed. The dismal basic qualifications and growth figure represents the situation of these people. Therefore, the Government of India has initiated a lot of support programs in the field of education and employment through the special minority quota. Many banks and financial institutions are also offering benefits to the physically challenged people through various programs. All the benefits are available only for Indian citizens with 40% or more disability.

Schemes For Physically Challenged

Apart from status of special minority quota declared by the government organization for employment and education, many NGOs and companies registered under Sec 25 i.e. non-profit organizations like NHFDC are also working for their better living and employment.

National Handicapped Finance and Development Corporation (NHFDC) is working by way of providing loans at concessional rate to disabled people (aged between 18-60 years and annual income below Rs.5 lakh and 3 lakh for urban and rural areas respectively) for income generating activities through Punjab & Sind bank (P&SB), Oriental Bank of Commerce (OBC) and also through Regional Rural Banks in the State of Haryana, Gujarat, Uttar Pradesh and Uttaranchal etc.

Interest rates charged are as shown in the table:-

Sl. No.	Loan Amount	Rate of Interest (Per Annum)
1	Up to Rs.50, 000/-	5%
2	Above Rs.50, 000/- and up to Rs.5 lakh	6%
3	Above Rs.5 lakh	8%

A rebate of 1% on interest is given to disabled women.

The income generating activity should be among the following:-

1. Setting up a small business in the Service / Treading sector.
2. Purchase of Vehicle for commercial hiring.
3. Setting up a Small Industrial Unit.
4. Agricultural activity.

Loan also provided for:-

• Self-employment amongst persons with Mental retardation (problems with learning and developing), Cerebral palsy (unable to use some of the muscles in the body in normal way) and Autism (a kind of brain disorder that causes kids to experience the world differently from the way most other kids do).
• Professional or Educational or Training courses in India as well as abroad.

**Above Mentioned Data taken from NHFDC’s portal.

Apart from above, banks are also providing special loan schemes to disabled persons, like Bank of India is offering a scheme called ‘star mitra’ personal loan upto Rs 1 Lac, Oriental bank of commerce is offering a special savings account called ‘Jeevan sarathi yojana’ with close to zero charges along with disabled supportive services.

Special Aadhar Card Support

The government has started special mobile van to include all the physically challenged and senior citizens to enroll for Aadhar card. The biometric rules for the disabled has been significantly eased to include each and every physically challenged citizen.

Other Financial Support

Insurance companies are providing disability specific insurance plans with special benefits for physically or mentally handicapped people. LIC of India offers two plans i.e. Jeevan Aadhar and Jeevan Vishwas for disabled people who are dependent on someone else. 

Many banks and financial institutions time to time offer an increased rate of interest on fixed deposit as well as on savings A/c.

Indian Railway is giving 25% to 75% concession on fares of different classes. Similarly, disabled people are also getting rebates on fares of air journey.

The Income Tax Act, 1961 provides deduction u/s 80U for the people having at least 40% disability. They are eligible for a deduction to the extent of Rs. 50,000/- and in case of severe disability to the extent of Rs. 1,00,000/-

Among disabled people, visually impaired have additional difficulties. Being unable to see creates lots of problems. Although they have job opportunities but in case of dealing with investments, insurance or any other investment related agreements the disabled are scared due to lack of faith. It is important to deal with these types of activities with special care. They should take help of trusted people like a family member or a friend after proper identification. To solve these problems, Braille-supported documents are used in some of the key documents but many financial products still lack such facility. Banks have introduced talking ATMs with Braille-supported card reader and card slot. But, in India, most of the financial companies and insurance companies, even LIC of India is not providing the facility of Braille-supported documents i.e. forms, agreements etc. Only a few banks have introduced talking ATMs and finding them itself is not easy.

Conclusion

To conclude, we can say that there are some specific employment options available in India for physically challenged people according to their capacity and skill to perform. But, it has been observed that among such disabled people, very few are educated and therefore employment is very low. So, first disabled people have to be encouraged towards education so that they get aware of those benefits which are available for them. Finally, there is a requirement of more work in the field of investments, financial support as well as in the field of insurance to uplift the status of physically challenged people.   

NOTE: The Article has been written and dedicated to all the physically challenged, who can’t read, understand and use the content. But, everyone who can read this, I request you to help such deprived people by passing the info.

About the Author:

Amit Sethi is an MBA (Fin) graduate and a Financial Consultant. He has spent over 10 years in Equity research, Stock broking and Financial Consultancy Sector. He can be reached at expert@investmentyogi.com.

Source : Investment Yogi