Key Takeaways
- The scheme is implemented by the Karnataka Minorities Development Corporation and targets students from the State Religious Minority Community pursuing professional and technical courses.
- Eligible students can borrow between ₹50,000 and ₹5,00,000 every year for the duration of their course.
- The loan carries a service charge of just 2 percent, far lower than typical education loan interest rates, and repayment begins six months after course completion.
- To renew the loan each year, students pay 12 percent of the amount issued in the previous year at their respective District Office.
- Family annual income must not exceed ₹8,00,000, and the applicant must be a permanent resident of Karnataka.
- The scheme covers a wide range of professional courses, including MBBS, MD, MS, BE, BTech, MTech, BDS, MDS, BAyush, MBA, MCA, LLB, BArch, BPharma and several allied science and agriculture disciplines, and has been extended to PU-level students as well.
What the Arivu Education Loan Scheme covers
Higher education in professional streams like medicine, engineering, law and management is expensive, and students from minority communities in Karnataka with modest family incomes often struggle to secure affordable loans from commercial lenders. The Arivu Education Loan Scheme was designed by the Karnataka government's Minorities Welfare Department to close that gap with a low-cost, state-backed loan.
The scheme was originally aimed at students already enrolled in professional degree courses, and has since been extended to Pre-University students as well, widening its reach to a younger cohort planning their higher education path.
Eligibility criteria
- The applicant must be a permanent resident of Karnataka.
- The applicant must belong to the State Religious Minority Community as recognised by the Government of Karnataka.
- The applicant's family annual income must not exceed ₹8,00,000.
- The applicant must be enrolled in, or have secured admission to, an eligible professional or technical course.
Courses eligible under the scheme
The scheme funds a wide spread of professional and technical courses, including MBBS, MD, MS, BE, BTech, ME, MTech, BDS, MDS, BAyush, MAyush, MBA, MCA, LLB, BArch, MArch, BPharma, MPharma, PharmD and DPharma. It also covers BSc programmes in horticulture, agriculture, dairy technology, forestry, veterinary and animal sciences, food technology, biotechnology, fisheries, sericulture, home and community sciences, and food nutrition and dietetics.
Loan amount, service charge and repayment
| Feature | Detail |
|---|---|
| Loan amount per year | ₹50,000 to ₹5,00,000, disbursed annually for the duration of the course |
| Service charge | 2 percent, charged in place of conventional interest |
| Repayment start | Six months after completion of the course |
| Annual renewal charge | 12 percent of the amount issued in the previous year, paid at the respective District Office |
Documents required
- Two recent passport-sized photographs
- Caste or community certificate confirming State religious minority community status
- Income certificate showing family annual income within the ₹8,00,000 limit
- Proof of Karnataka residence, such as a ration card, voter ID or domicile certificate
- Admission proof or bonafide certificate from the institution for the course being pursued
- Aadhaar card linked to an active mobile number for OTP verification
How to apply for the Arivu Education Loan Scheme
- Visit the official website of the Karnataka Minorities Development Corporation and click on Apply Online.
- Enter your mobile number and submit to begin the application.
- Enter your Aadhaar number, complete the captcha and proceed to the next step.
- Verify your identity using the OTP sent to your Aadhaar-linked mobile number.
- Complete a second OTP verification step as prompted by the portal.
- Select the relevant loan category, fill in your personal and academic details, and upload the required documents.
- Submit the application to receive an Application ID, which you can use to track status going forward.
Frequently Asked Questions
Who is eligible for the Arivu Education Loan Scheme?
Permanent residents of Karnataka who belong to the State Religious Minority Community, with a family annual income not exceeding ₹8,00,000, are eligible.
How much loan can a student get under this scheme?
Students can receive between ₹50,000 and ₹5,00,000 each year for the duration of their course.
What interest rate applies to the Arivu loan?
The scheme charges a service charge of 2 percent instead of a conventional interest rate, making it one of the most affordable education loan options in the state.
When does loan repayment start?
Repayment begins six months after the student completes their course.
Which courses are covered under the scheme?
Professional courses including MBBS, engineering, MBA, MCA, law, architecture, pharmacy, and select BSc programmes in agriculture, veterinary and allied sciences are covered.
How do I renew the loan for the next academic year?
Renewal requires paying 12 per cent of the amount issued in the previous year at your respective District Office of the Karnataka Minorities Development Corporation.
Need help with your education loan application?
Gathering the right income and community documents, and getting your Aadhaar-linked application right the first time, saves weeks of back and forth. Book a free consultation with Growthora and we will help you put together a complete Arivu Education Loan Scheme application.
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