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The Devaraj Arasu Education Loan is a government-backed scheme that helps students from backward classes pursue higher education without financial constraints. Managed by the D. Devaraj Urs Backward Classes Development Corporation, this initiative aims to make both domestic and overseas education accessible through low-interest and interest-free options.
There are three major schemes available under this program:
- Interest-Free Loan for Higher Education in a Foreign University
- Arivu Education Loan Scheme
- D. Devaraj Urs Individual Loan Scheme
These schemes differ in terms of loan coverage, eligibility, and repayment flexibility, but all share the goal of supporting students in higher education.
Key Takeaways
- The Devaraj Arasu Education Loan helps Karnataka’s backward class students fund higher studies in India and abroad through low or zero-interest government schemes.
- The loan covers tuition, hostel, travel, and equipment expenses, offering up to ₹5 lakh per course for studies in India and up to ₹10 lakh (interest-free) for studies abroad, with flexible repayment terms.
- Three major schemes—Arivu, Interest-Free Loan for Higher Education Abroad, and D. Devaraj Urs Individual Loan Scheme—support different student requirements.
- Applications can be submitted online through the Suvidha Karnataka Portal, with processing timelines of around 30–45 days.
Devaraj Arasu Loan Overview
Here’s a quick overview of the key features and terms of the Devaraj Arasu Education Loan:
|
Particulars |
Details (2026) |
|
Loan Limit |
Up to ₹10 Lakhs |
|
Interest Rate |
Starts from 2% (varies by scheme) |
|
Moratorium Period |
Course duration + 1 year |
|
Collateral Requirement |
None |
|
Processing Time |
30–45 working days |
|
Disbursal Period |
Within 15 days of approval |
|
Official Helpline |
080-22374837 / 22374838 |
Read and know what is Moratorium Period and why it is important.
Devaraj Arasu Education Loan Interest Rates 2026
The Devaraj Arasu Education Loan is offered at highly subsidised or zero interest rates, depending on the course type, location and beneficiary category. Below are the interest rates and loan amounts defined for each category:
|
Scheme |
Interest Rate |
Loan Amount |
Eligible Students |
Special Benefits |
|
2% per annum |
₹1 lakh per year (up to ₹4–5 lakh per course) |
Students from Backward Classes (Category 1, 2A, 3A, 3B) |
Concessions for students from economically weaker sections and female candidates |
|
|
Interest-Free Loan for Higher Education Abroad |
0% (Interest-Free) |
₹3.5 lakh per annum, up to ₹10 lakh total |
Students from backward classes pursuing higher studies in foreign universities |
Covers Engineering, Medicine, Management, Science, Agriculture & Humanities |
If you’re comparing this scheme with private lenders, check Propelld’s Interest Rate Policy and Transparency Page to understand how rates and approval criteria differ from government-funded options.
Get Education Loan with Higher Chances of Approval
People Also Ask
For many eligible students, the loan carries a 2% subsidized interest rate, and in select cases (based on income or category), it can be interest-free. However, students should confirm the exact rate with the District Backward Classes Office before applying.
Repayment begins after the completion of the course, typically following a moratorium period of up to one year. This allows students sufficient time to secure employment before starting their EMIs. Early repayment is also allowed without any penalty.
Devaraj Arasu Education Loan Eligibility Criteria 2026
Eligibility under the Devaraj Arasu Education Loan Scheme is based on a combination of social category, family income, academic qualification, and course type. Applicants must meet all prescribed criteria to qualify for the loan and related interest benefits.
Category: Students belonging to Backward Classes — Category 1, 2A, 3A, and 3B — are eligible. (Excludes Okkaliga, Veerashaiva Lingayat, Maratha, Savita Samaj, Madiwala, and related sub-castes)
Income Limit: Annual family income must not exceed ₹3.5 lakh.
Admission Criteria: Admission must be obtained through Common Entrance Test (CET) or any other recognised qualifying examination.
Eligible Courses (India): Undergraduate, Postgraduate, and Diploma programs.
Eligible Courses (Abroad): Engineering, Medicine, Management, Science & Technology, Agriculture, and Humanities.
Loan Tenure: For Arivu, loans can be taken up to ₹5 lakh over the course duration; for abroad studies, up to ₹10 lakh interest-free.
Pro Tip: Always verify your caste certificate and income proof validity before applying to prevent delays during document verification.
Not falling under this eligibility criteria? To compare flexible eligibility and co-applicant options across other lenders, check Education Loan Eligibility and How to Apply.
Approval Based on Your 12th Marks - Propelld Education Loan
Devaraj URS Loan Application Last Date
For the academic year 2025-26, the last date to submit the Devaraj URS Loan application form was June 30, 2025. As of June 2026, the deadline for the 2026-27 cycle has not yet been officially notified — dates are subject to change, so confirm the latest schedule on the D. Devaraj Urs Backward Classes Development Corporation portal (Seva Sindhu / Suvidha Karnataka Portal). Applicants must complete and submit their forms with the necessary documents on or before the notified date.
Missed the Deadline?
Eligible students who couldn’t apply will need to wait for the next official application cycle, usually announced by the D. Devaraj Urs Backward Classes Development Corporation.
Use this time to check eligibility, prepare documents, and explore alternative education loan options so you’re fully ready when the next Devaraj URS loan window opens.
If you don’t want to delay your education plans, explore education loan options that offer faster approvals, flexible eligibility, and minimal documentation, like Propelld.
Documents Required For Devaraj Arasu Education Loan
To ensure smooth loan approval, students must upload or submit valid documents as per the D. Devaraj Urs Backward Classes Development Corporation guidelines.
Here’s the complete checklist for the Devaraj Arasu Education Loan for all schemes:
| Document Type | Required Documents |
|---|---|
| Admission Letter | Admission letter from the institution |
| Previous Academic Records |
|
| Proof of Identity and Residence |
|
| Income Proof of Parents or Guardians |
If Salaried:
|
| Statement of Expenses for the Course |
|
Do Read about Arivu Education Loan: Eligibility and Application Process for more information on the scheme.
How to Apply for the Devaraj Arasu Education Loan?
The Devaraj Arasu Education Loan can be applied online through the Suvidha Portal. The entire process is simple and can be completed in a few minutes.
Step-by-Step Application Process
Where to Apply
Applications for the Devaraj Arasu Education Loan are accepted through official government-notified channels, both online and offline.
Online
Through the Suvidha Karnataka Portal
Offline
Submit your printed form and documents at nearby service centres like Gram One (rural areas), Bangalore One or Karnataka One.
You can also submit it offline at the contacting office:
Devaraja Arasu Bhawan, No.16/D, 4th Floor, Millers Tank Bund Area, Vasantnagar, Bangalore-560 052
How to Check Your Devaraj Arasu Loan Status?
After submitting your application, you can easily check your Devaraj Arasu Education Loan status Online or Offline.
Online
To check online, visit the official Suvidha Karnataka Portal, login and check your submitted applications.
Offline
Helpline: Call 080-22374837 / 22374838 (Monday to Friday, 10 AM–5 PM).
Offline Visit: Visit the nearest Gram One, Bangalore One, Karnataka One or the contacting office centre for in-person updates.
Tip: Keep your application number handy when checking your loan status online or over the phone.
Important Tips
- Ensure your documents are clear, self-attested, and complete before submission.
- Keep your Suvidha login credentials safe for future tracking.
- Regularly check the portal for status updates and notifications.
Devaraj Arasu Education Loan Repayment Terms
Repayment under the Devaraj Arasu Education Loan is structured to ensure flexibility and affordability for students beginning their careers.
|
Parameter |
Details |
|
Repayment Tenure (India) |
Repayable in monthly instalments within 3 years, starting 4 months after course completion |
|
Repayment Tenure (Abroad) |
Flexible repayment window up to 15 years, depending on loan type |
|
Moratorium Period |
Course duration + 4 months (Arivu) / Up to 1 year (general scheme) |
|
Expense Coverage |
Tuition, exam, and accommodation fees; books, travel expenses (for abroad students); and cost of laptop/computer if required |
|
Repayment Concessions |
Lower interest for female students and those from economically weaker sections |
Pro Tip:
Students opting for repayment planning can refer to Propelld’s Moratorium Policy to understand repayment grace periods and compare flexible repayment structures.
Loan Disbursement and Management
Once your loan is approved, the bank will manage the disbursement directly to your educational institution:
Disbursement Process:
The amount is credited to the educational institution's account in instalments that are in sync with your course requirements. Regularly and carefully review your loan account to ensure there are no discrepancies.
During Studies:
Focus on your finances and manage the financial aspects. Regular communication with your loan officer can help address any issues promptly.
There are various other schemes for students. Read this blog to learn more about Government Education loans for SC/ ST Students.
Benefits and Drawbacks
Like any financial product, the Devaraj Arasu Education Loan has its advantages and potential downsides:
Benefits:
Comprehensive Coverage:
It covers almost all educational expenses, making it easier for students to focus on their studies.
Flexible Repayment:
The option for a moratorium period and extended repayment terms provides flexibility.
Competitive Interest Rates:
Lower-than-average interest rates reduce the financial burden.
Education Loan in Karnataka: Other Options
Apart from the Devaraj Arasu Education Loan Scheme, students in Karnataka can also explore bank-led education loans, NBFC-funded options, and other state or central government schemes. These alternatives may offer higher loan limits, faster processing, or flexible collateral terms depending on the course and institution.
| Bank Name | Loan Limit | Interest Rate | Repayment Period | Moratorium Period | Collateral Requirement |
|---|---|---|---|---|---|
| State Bank of India | Up to 1.5 Cr | From 8.55% | 15 Years | Course Duration +1 year | Yes |
| Bank Of Baroda | Up to 1.5 Cr | From 9.15% | |||
| Union Bank of India | Up to 2 Crores | From 11.15% | |||
| Karur Vysya | Up to 2 Crores | From 10.30% |
Students in Karnataka can also consider private and NBFC options after reviewing the key education loan benefits such as tax savings, flexible repayment, and minimal upfront burden.
The Devaraj Arasu Education Loan helps Karnataka’s backward class students, helping them pursue higher education without financial strain. Thousands of students across Karnataka have successfully availed the Devaraj Arasu and Arivu schemes for their professional studies.
While it ensures access and inclusivity, not every student may qualify due to category, income, or institutional criteria.
For such students, Propelld offers an equally empowering path with no-collateral loans, 0% margin money, and faster approvals through a 100% digital process.
Your education is your biggest investment, let Propelld make it simple, transparent, and stress-free.
Check your eligibility now and see how Propelld can support your education journey.
