The Arivu Education Loan Scheme is a financial aid initiative by the Karnataka Minorities Development Corporation (KMDC) under the Minorities Welfare Department, Government of Karnataka. It aims to support students from religious minority communities in pursuing professional courses by providing education loans ranging from ₹50,000 to ₹5,00,000 per year. The loan amount is directly transferred to the student’s college and repayment begins six months after course completion, with a minimal 2% service charge. This scheme helps minority students access quality higher education without financial barriers.
Overview of Arivu Education Loan Scheme
This scheme is open to students from religious minority communities in Karnataka, including Muslims, Jains, Sikhs, Christians, Buddhists and Parsis. The loan facility is exclusively available to students who have been selected through the Karnataka Examination Authority (via CET/NEET).
| Name of scheme | Arivu Education Loan Scheme |
| Loan Amount | ₹50,500 – ₹5,00,000 |
| State | Karnataka |
| Provider | Karnataka Minorities Development Corporation (KMDC) |
| Application Mode | Online/offline |
| Loan Repayment | After 6 months of completion of the course. |
| Interest Rate | Service charges of 2% |
Arivu Education Loan Scheme – Eligibility
To apply for the Arivu Education Loan, students must fulfil specific eligibility requirements. Please review the following criteria:
- The applicant must be an Indian citizen and domiciled in Karnataka.
- Students applying for this loan must belong to the State Religious Minority Community.
- Successful completion of the previous examination (Class 12 or graduation) is a prerequisite for applicants.
- The annual family income of the applicant should not exceed INR 8 lakh.
- For renewal, students must repay 12% of the loan taken in the previous year.
- The scheme is available for students pursuing specific courses. Here is a list of the eligible courses:
| Course names | ||||
|---|---|---|---|---|
| M.B.B.S. | B.Tech. | M.D.S. | M.C.A. | B.Pharma. |
| M.D. | M.E. | B.Ayush. | L.L.B. | M.Pharma. |
| M.S. | M.Tech. | M.Ayush. | B.Arch. | Pharma.D. |
| B.E. | B.D.S. | M.B.A. | M.Arch. | D.Pharma. |
| B.Sc. (Horticulture, Agriculture, Dairy Technology, Forestry, Veterinary, Animal Science, Food Technology, Bio-Technology, Fisheries, Sericulture, Home/Community Sciences, Food Nutrition and Dietetics) | ||||
Arivu Education Loan Scheme – Loan Limits
The scheme offers varying maximum loan amounts depending on the course. Refer to the table below for specific details on the loan limits:
| Courses | Loan Limits (per year) |
| M.B.B.S., M.D., M.S. | Up to ₹5,00,000 |
| B.D.S., M.D.S. | Up to ₹1,00,000 |
| B. Ayush, M. Ayush | Up to ₹50,000 |
| B.E., B.Tech., M.E., M.Tech., B.Arch., M.Arch. | Up to ₹50,000 |
| M.B.A., M.C.A., L.L.B. | Up to ₹50,000 |
| B.Sc. (Specialisation given above) | Up to ₹50,000 |
| B.Pharma, M.Pharma, Pharma.D, D.Pharma | Up to ₹50,000 |
Arivu Education Loan Scheme – Documents Required
To apply for this loan scheme, students need to submit the following documents with the application form:
- Student online application
- Recent 2 passport size photos of the student
- Student’s caste and income certificate
- Aadhaar card copy of the student
- Letter of student’s CET admission letter
- Letter of student’s NEET admission letter
- Student’s SSLC / 10th marks card copy
- Student’s diploma / PUC marks card
- Indemnity bond by the student and parents
- Student’s college bank details
- Student bona-fide/study certificate
- Student and parents self-declaration form
- College Fee Structure.
Arivu Education Loan Scheme – How to Apply?
The detailed application process for Arivu Education Loan Scheme is given below so that it’s easier to understand it:
- Visit the official website
- Scroll down and click on the link that reads ‘Arivu Education Loan Scheme.’
- Click on the ‘Apply Online’ button.
- Now, click on the ‘Apply New’ button.
- Enter the mobile number and OTP.
- Enter the aadhaar number and click on the ‘Next’ button.
- Fill in the important details in the application form.
- Click on the ‘Save the Application’ tab and download the form.
- Attach the supporting documents.
- Create a combined file (hardcopy) consisting of the application form and documents.
- Submit the file to the KMDC office.
FAQs
1) What is the interest rate for the Arivu Education Loan, and when does repayment begin?
– The loan carries a nominal interest rate of 2% per annum. Repayment is scheduled to commence six months after the completion of the course.
2) Is there a requirement for collateral or guarantors to avail of this loan?
– No, the Arivu Education Loan Scheme does not require students to provide any collateral, guarantees, or margin money. This feature makes it more accessible to students from economically weaker sections.
3) How is the loan amount disbursed to the students or institutions?
– The sanctioned loan amount is directly transferred from KMDC to the bank account of the respective college or institution through the Direct Benefit Transfer (DBT) system. This ensures timely and transparent disbursement of funds.
4) Are students pursuing courses outside Karnataka eligible for this loan?
– No, the scheme is specifically designed for students who have secured admission to professional courses within Karnataka through CET/NEET under the government quota. Students planning to study outside the state are not eligible for this loan.
5) What happens if a student discontinues the course after availing of the loan?
– If a student discontinues the course after availing of the loan, they are obligated to repay the entire loan amount along with the applicable interest. The repayment schedule and terms will be determined by KMDC based on the specific circumstances of discontinuation.