NHFDC, PNB signs MOU to facilitate concessional credit to PwDs

The National Handicapped Finance and Development Corporation (NHFDC), Department of Disability Affairs, Ministry of Social Justice and Empowerment and Punjab National Bank (PNB) signed an MOU to facilitate concessional credit to Persons with Disabilities (PwDs) on all India basis here today.

The chairman-cum-Managing Director of NHFDC, Harsh Bhal, and PNB General Manager S.S Bhatia, signed this MOU.

As per MOU, NHFDC will refinance to the PNB in respect of disbursement of loan to PwDs for self-employment for those activities, which are covered under Credit Guarantee Scheme of CGTMSE of the Government. In addition, NHFDC will also refinance the education loan for higher education to PwDs. The arrangement will be of great help to the students with disabilities who wish to pursue higher education after taking education loan.

NHFDC concessional credit to PwDs is available up to Rs. 25 lac on rate of interest ranging between four percent to eight percent. A special rebate of one percent is available across the board to women beneficiaries. The education loan for higher education for study in India and abroad is available at the interest rate of four percent. The loan is available up to Rs. 10 lac for study in India and upto Rs. 20 lakh for study at abroad. In case of female student the rate of interest is only at 3.5 percent p.a. The education loan of NHFDC will now be available to PwDs through all branches of PNB at almost 1/3rd of the market interest rate.

NHFDC has so far tied up with three public sector banks (Andhra Bank, IDBI Bank and Bank of Baroda) and 24 Regional Rural Banks in Uttar Pradesh, Uttarakhand, Haryana, Gujarat, Maharashtra, Madhya Pradesh and Assam. NHFDC has also tied up with North Eastern Development Finance Corporation (NEDFi) for extending financial assistance to PwDs in entire North Eastern Region. Both these tie ups are under Credit Guarantee Scheme of CGTMSE.

PNB has around 5900 branches throughout the country and have a strong presence in northern region of the country. It was decided to focus first on the education loan to students with disabilities to begin with as the academic session has just started.

Present on the occasion were C.S. Pasricha, DGM, PNB, U.N Agarwal, AGM, PNB, A.K. Dey, DGM, NHFDC and Dr. Vineet Rana, Manager (Project) NHFDC.