Differently Abled Persons Can Now Get Bank Loan Easily; Gets Included In Priority Sector Lending

loans for differently-abled in India

After one of the historic decisions made by RBI, differently abled persons can now get loans and credit from bank easily. As per a recent notification, they will be now included in the priority sector.

There is a category called Weaker Sections in the Priority Sector, and differently abled persons would be included under this category to make it easier for them to apply and receive bank loans.

As per the RBI notification, “It has been decided that priority sector loans to Persons with Disabilities will be eligible for classification under Weaker Sections category. These guidelines are effective from the date of this circular.”

loans for differently-abled in India
Image Source: IBN Live

What is Priority Sector Lending?

RBI has mandated that 10% of the bank’s loan distribution budget should be allocated to few specified sectors, termed as Priority Sector. Foreign banks with less than 20 branches in India are exempted from this rule.

This includes the following categories:

(i) Agriculture

(ii) Micro and Small Enterprises

(iii) Education

(iv) Housing

(v) Export Credit

(vi) Others

This provision has been made to assist farmers, artisans, small scale entrepreneurs and self-employed persons to take loans at a faster rate, with less interest and less collateral. There is limit for every type of loans approved under Priority Sector lending such as Rs 10 lakh for education loan inside India and Rs 20 lakh for outside India; Rs 25 lakh home loan in metropolitan areas, and Rs 15 lakh for other cities and so on.

Under Weaker sections, the following are eligible for loans at special rates:

(a) Small and marginal farmers;

(b) Artisans, village and cottage industries where individual credit limits do not exceed `50,000;

(c) Beneficiaries of Swarnjayanti Gram SwarozgarYojana (SGSY), now National Rural Livelihood Mission (NRLM);

(d) Scheduled Castes and Scheduled Tribes;

(e) Beneficiaries of Differential Rate of Interest (DRI) scheme;

(f) Beneficiaries under SwarnaJayantiShahariRozgarYojana (SJSRY);

(g) Beneficiaries under the Scheme for Rehabilitation of Manual Scavengers (SRMS);

(h) Loans to Self Help Groups;

(i) Loans to distressed farmers indebted to non-institutional lenders;

(j) Loans to distressed persons other than farmers not exceeding Rs 50,000 per borrower to prepay their debt to non-institutional lenders;

(k) Loans to individual women beneficiariesuptoRs 50,000 per borrower;

Henceforth, Differently abled persons would be included in this list so that their loan applications are treated on an urgent basis, and they receive loans faster.

The rate of interest for such loans has not been finalized, as it depends on the concerned bank which is approving the loan and the geographic location of the applicant.

You can find more details about Priority Sector lending here.