The Overseas Educational Loan Scheme is an initiative by the Minorities Welfare Department, Government of Karnataka, and is implemented by the Karnataka Minorities Development Corporation. The scheme provides financial assistance to students belonging to minority communities who wish to pursue graduate or postgraduate degree courses in recognized universities abroad.
Benefits of the Scheme
- Loan assistance up to ₹20,00,000/- at zero interest rate.
- No interest charges on the loan amount.
- Financial support for higher education in foreign universities.
Eligibility Criteria
- The applicant must be a resident of Karnataka.
- The applicant must belong to a minority community (Muslim, Christian, Jain, Buddhist, Sikh, and Parsi).
- The student must have secured at least 60% marks in the previous academic year.
- The student must have an offer letter from a recognized foreign university.
- A mortgage of property (building/land) is required to avail of the loan.
- The value of the property should be equal to or greater than the loan amount.
- Students who have received scholarships from the Directorate of Minorities are NOT eligible.
Application Process
Online Application
- Visit the Official Website of Karnataka Minorities Development Corporation.
- Click “Apply Online” and enter the registered mobile number, then submit.
- Enter your Aadhaar Number, fill in the captcha, and click Next.
- An OTP will be sent to your Aadhaar-linked mobile number.
- Enter the OTP and click Continue, then accept the official notice.
- Verify your Aadhaar again and submit OTP.
- Select the scheme name (“Overseas Educational Loan Scheme”) and enter basic details (Father’s Name, Gender, Qualification, etc.).
- Fill in address details and proceed to the next step.
- Upload required documents (passport-size photo, educational documents, income certificate, etc.).
- Click Proceed, then Submit Application, and note down the Application ID for future reference.
Documents Required
- Aadhaar Card (as proof of residence)
- Caste/Minority Certificate (issued by the competent authority)
- Income Certificate (issued by the competent authority)
- SSLC Marks Card
- 12th Standard PU Marks Card
- SSLC Transfer Certificate
- Present Study Certificate
- College Fee Structure
- Copy of Passport
- Copy of Visa
- Sale Deeds & Mother Deed (for property mortgage)
- Khata Extract and Khata Certificate or Mutation Certificate
- Nil Encumbrance Certificate (Form No.15)
- Up-to-date Tax Paid Receipt
- Guidance Rate from Appropriate Authority
- Spot Inspection Report of the property by the District Manager
- Valuation Report by a Registered Valuer
- Affidavit from Applicant
- Joint Affidavit from the Beneficiary & the Guarantor
- Promissory Note along with D.P Note Delivery Letter
Frequently Asked Questions (FAQs)
Q: What is the Overseas Educational Loan Scheme?
The scheme provides financial assistance (up to ₹20,00,000/-) to minority students from Karnataka who wish to pursue graduate/postgraduate studies abroad.
Q: Who is eligible for the Overseas Educational Loan Scheme?
- The student must be a resident of Karnataka.
- The student must belong to a minority community (Muslim, Christian, Jain, Buddhist, Sikh, or Parsi).
- The student must have at least 60% marks in their last academic year.
- The student must have secured admission in a recognized foreign university.
Q: Which minority communities are covered under this scheme?
Muslims, Christians, Jains, Buddhists, Sikhs, and Parsis.
Q: What is the maximum loan amount under this scheme?
The maximum loan amount is ₹20,00,000/-.
Q: Is there an interest rate on the loan?
No, the loan is interest-free (0% interest rate).
Q: Is it mandatory to mortgage a property to avail of this loan?
Yes, the student must mortgage a property (land/building) equivalent to or greater than the loan amount.
Q: Can students who have already received a scholarship from the Directorate of Minorities apply?
No, students who have received scholarships from the Directorate of Minorities are not eligible for this loan.
Q: Are diploma or short-term courses eligible for this loan?
No, only full-time graduate and postgraduate degree courses are eligible.
Q: How is the loan amount disbursed to the student?
The loan amount is disbursed in installments directly to the student’s bank account.
Q: What documents are required for the application?
Students need to provide Aadhaar, caste certificate, income proof, academic certificates, passport, visa, and property-related documents for mortgage purposes.