The public sector banks are required to extend loans to the persons suffering from austim, retardness, as per Government policy. However, the question is for what purposes loans would be granted to retarded persons and how a bank can grant a loan to mentally retarded person as we are sure that bank cannot directly grant a loan to a mentally retarded person.?
The loan will be provided to set up an income generating activity for the benefit of the mentally retarded persons. The nature of income generating activity will be such that it involves the mentally retarded persons directly in the activity. The activity shall be managed by the guardian. Repayment of the loan is also the responsibility of the guardian.
As per Section 16(1) in The National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Rules, 2000, the application by a parent, relative or registered organisation for appointment of guardian for a person with disability shall be made to the local level committee in Form A. Hence, a petitioner for guardianship has the liberty to approach the District Collector or District Court as the case may be.
The second question is how a bank can grant a loan to mentally retarded person?
This is because lunatics are persons of unsound mind. A contract with the insane person is void ab-initio. Therefore bank cannot directly grant the loan to a mentally retarded person.Therefore, it is essential to appoint a guardian (and in some cases Managers) for the mentally ill persons as per section 53 & 54 of Mental Health Act1987. The section 53 of Mental Health Act 1987 LEGAL Guardian can only avail of the loan on behalf of the mentally retarded person. The legal ‘Guardianship Certificate’ for unsound mind is issued either by the District Court under Mental Health Act 1987 or the Collector under provisions of “Mental Retardation and Multiple Disabilities Act 1999”.It is IMPORTANT to note that PARENTS of the mentally retarded person of 18 years of age shall have ‘Guardianship Certificate’ to avail financial assistance for such disabled person.While granting loans banks are relied upon the ‘Guardianship Certificate’ issued either by the District Court under Mental Health Act 1987 or by the Local Level Committees set up under “Mental Retardation and Multiple Disabilities Act 1999”.
The procedureof “How to open a bank account of a mentally ill person?” is explained in the following link