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NHFDC Scheme for Parents of Mentally Retarded Persons

NHFDC Scheme for Parents of Mentally Retarded Persons

NHFDC Scheme for Parents of Mentally Retarded Persons

The National Handicapped Finance and Development Corporation (NHFDC) was set up by the Ministry of Social Justice & Empowerment, Government of India. NHFDC is wholly owned by Government of India and has an authorised share capital of Rs.400 crores. NHFDC is managed by Board of Directors nominated by Government of India. NHFDC channelises the funds to persons with disabilities through the State Channelising Agencies (SCAs) nominated by the State Governments. The NHFDC Scheme for Parent’s association of mentally retarded persons is one of the program which helps the family of mentally retarded and this is a credit-based scheme.

Purpose of the Scheme

The main objective and purpose of the scheme is to enable parent’s associations of mentally retarded persons to help mentally challenged persons with viable income-generating activities. The scheme will enable income generation with the active involvement of the mentally retarded persons and the income generated will be shared amongst the beneficiaries. The respective parent’s association will manage the entire income-generating activity, and this will be a voluntary service rendered by the parent’s association.


  1. The respective parent’s associations should be registered entities for at least 3 years.
  2. The association should have at least five persons (parent’s) as members.
  3. The association should not have defaulted on any state government, central government loans or any other loans availed from public sector financial institutions, including banks.

Quantum of Loans

Each Parent’s Association has a cap of Rs.5.00 lakhs as the maximum quantum of loan. The parents will have to bring in 5% of the project cost as their share. The loan amount can be used by the Parent’s Association either for a single project or multiple ones. The objective should be to ensure maximum participation of members of the parent’s association so that the benefits reach more numbers of mentally disabled persons.

Rate of Interest 

  • Interest rate of 5% p.a. for loans up to Rs.50,000
  • Interest rate of 6% p.a. for loans above Rs.50,000 and up to Rs.5 Lakhs.

A rebate of 1% p.a. on interest is allowed for mentally disabled women.

Repayment Period

The loan under Schemes for Parent’s Association will have a maximum repayment of 10 years. The repayment will have to be made in Equal Quarterly Installments (EQI).

Procedure for Obtaining Loan

  1. The application for a loan under the Parent’s Association under NHFDC will have to be submitted by the respective parent’s association directly to the Office of National Handicapped Finance and Development Corporation.
  2. Once the application is received by NHFDC, it will go through an initial appraisal. If found appropriate, NHFDC will communicate approval of the loan to the banks associated under this scheme. The respective branches of the banks will release the limits to the beneficiaries.
  3. The forms must be submitted in the prescribed format and should be sent either directly to NHFDC corporate office, registered office or to the respective Special Channelizing Agencies (SCA).
  4. The list of SCA and the addresses are mentioned in the link:

The details of the corporate office and registered office of NHFDC are given below:

Corporate Office

    • National Handicapped Finance and Development Corporation (NHFDC)
    • Unit No. 11&12, Ground Floor,
    • DLF Prime Tower,
    • Okhla Phase-I
    • Near Tehkhand Village
    • NEW DELHI-110020
    • Phone: 011-45803730

Registered Office

    • National Handicapped Finance and Development Corporation (NHFDC)
    • Red Cross Bhavan,
    • Sector-12,
    • Faridabad-121007
    • Haryana
    • Email: [email protected] website: