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
Devaraj Arasu Education Loan 2025 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 amounts up to ₹25 lakh with flexible repayment options of up to 15 years.
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:
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.
Is the Devaraj Arasu Education Loan completely interest-free?
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.
When does repayment start for the Devaraj Arasu Education Loan?
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.
Citizenship: Applicant must be an Indian citizen and a permanent resident of Karnataka.
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.
Academic & Course Requirements
Recognised Institutions: The course and institution must be approved by UGC, AICTE, or other recognised authorities.
Eligible Courses (India): Undergraduate, Postgraduate, and Diploma programs.
Eligible Courses (Abroad): Engineering, Medicine, Management, Science & Technology, Agriculture, and Humanities.
Age & Duration
Age Limit: Applicants must typically be between 18 to 35 years.
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.
The last date to apply for the Devaraj Arasu Education Loan has recently been extended from 31.8.2024 to 15.09.2024.
Applicants should fill out their application form before 15.09.2024 to avail themselves of the benefits.
To apply for the Devaraj URS loan before the deadline, students should first explore the available and ensure they meet the application requirements for 2024.
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
Marksheets of 10th and 12th
Degree mark sheets
Fee structure
Admit card for GMAT/ GRE/ IELTS
Proof of Identity and Residence
Aadhar card
PAN card
Income Proof of Parents or Guardians
If Salaried:
3 months of pay slips
Employer's ID card
If Self Employed:
Business address proof
Profit and loss account
2 years of Form 16
IT return of last two years
Statement of Expenses for the Course
Fee structure
Receipts of any advance payments made
Pro Tip
Pro Tip: Keep all documents scanned and verified before uploading on the Suvidha Karnataka Portal to avoid application rejection.
How to Apply for the Devaraj Arasu Education Loan 2025?
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
Step 1
Go to the official website of the D. Devaraj Urs Backward Classes Development Corporation.
Step 2
Under the ‘Online Services’ section, click on ‘Suvidha Section’.
Step 3
Register yourself with a valid mobile number and Aadhaar-linked details. Once registered, log in using your username and password.
Step 4
Select the appropriate Education Loan Scheme (Devaraj Arasu / Arivu / Interest-Free Loan). Fill in the details, upload required documents, and submit the form.
Where to Apply
Online
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:
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.
What is the Devaraj Arasu Loan Online Application Last Date for 2025?
Particulars
Details
Application Start Date
June 2024
Last Date to Apply
15 September 2024
Processing Time
30–45 working days
Disbursal Period
Within 15 days of approval
Official Helpline
080-22374837 / 22374838
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.
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,Propelldoffers 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.
Who is eligible for the Devaraj Arasu Education Loan?
The loan is available to Indian citizens with secured admission into recognised institutions in India or abroad for undergraduate, postgraduate, or diploma courses. Applicants should be between 18 and 35 years of age.
What documents are required to apply for the Devaraj Arasu Education Loan?
You'll need an admission letter from the institution, previous academic records, proof of identity and residence, income proof of parents or guardians, and a statement of expenditure for the course.
How much loan amount can I get under the Devaraj Arasu Education Loan?
The maximum loan amount is ₹25 lakhs for studies abroad and ₹15 lakhs for studies in India. The loan covers tuition fees, accommodation, books, travel expenses, and the cost of a laptop or computer if required.
What is the interest rate for the Devaraj Arasu Education Loan?
The interest rate is approximately 9% per annum, which is competitive compared to other Concessions available. Concessions may be available for specific categories of students, such as women or those from economically weaker sections.
What are the repayment terms for the Devaraj Arasu Education Loan?
The repayment period ranges from 5 to 15 years, with a moratorium period of up to one year after course completion or six months after securing a job, whichever comes first.
How can I apply for the Devaraj Arasu Education Loan?
You can fill out the application through the Devaraj Arasu official portal. You can also apply offline by visiting and submitting your application with the required documents.
Is there any collateral required for the Devaraj Arasu Education Loan?
Students may need collateral within a certain threshold. Tangible collateral may be required, such as property for loans above a specific limit or fixed deposits. However, loans under ₹7.5 lakhs may not require collateral.
What expenses are covered by the Devaraj Arasu Education Loan?
The loan covers tuition fees, examination fees, accommodation, travel expenses for studying abroad, books, and supplies. However, the city does not provide a laptop or computer, which is essential for the course.
What happens if I need more time to finish my studies?
The loan provides a moratorium period of up to one year after course completion or six months after securing a job, whichever comes to repayment time to start repaying your loan after finishing your studies.
Can I repay the Devaraj Arasu Education Loan early?
You can repay the loan early without any prepayment penalties. This flexibility allows you to reduce your interest burden by paying off the loan sooner than the scheduled term.
How is the loan disbursed to the institution?
The loan amount is disbursed directly to the institution in instalments according to the payment schedule specified by the institution. This ensures that tuition fees and other expenses are paid on time.
Can I apply for the Devaraj Arasu Loan if my course has started?
You can apply for the education loan even if your course has already begun, as long as you meet the eligibility criteria and provide the necessary documents.
Are there any tax benefits available on the Devaraj Arasu Education Loan?
Yes, under Section 80E of the Income Tax Act, you can claim a deduction on the interest paid on the education loan. This deduction is available for up to 8 years or until you pay the interest back, whichever comes earlier.
What if my loan application is rejected?
If the application is rejected, the bank typically provides a reason for the rejection. You can reapply after addressing the issues mentioned or consider alternative funding options. It’s advisable to ensure all documents are accurate and complete before reapplying.
Is there any support available for loan applicants during the application process?
Yes, the bank offers customer support through dedicated helplines and in-branch assistance to guide you through the application process. They can help clarify any doubts and ensure your application is complete.
A banker turned content marketer with expertise in growth-focused content strategies for the finance and digital sectors. She currently drives data-backed content initiatives at Propelld, through high-impact storytelling.
Before moving into content marketing, Vaishali spent nearly a decade in banking, across their asset and lending divisions and spent almost a decade in finance. An MBA in Marketing and a writer at heart, she finally took up content marketing and now simplifies money talks for the readers.
She is also a certified digital marketer (MICA), combining data-driven insights with creative storytelling to deliver measurable business growth.
Beyond work, Vaishali is a handcrafted brand founder, avid reader, and travel & food blogger, blending creativity and strategy in everything she does.
A seasoned Chartered Accountant, Shailesh Jain is a finance and compliance leader specializing in corporate finance, financial operations, and fintech-driven lending models. At Propelld, he scales education loan offerings by shaping financial strategies, optimizing operations, and ensuring regulatory excellence, driving sustainable growth in the edtech and fintech space.
An expert in Fintech & Edtech innovation, Shailesh leverages financial insights to transform education lending, combining analytical rigor with strategic foresight. Previously, he led the finance team at Khatabook, building a new lending venture, and has worked with PwC, ICICI Bank, and Mulberry Silks, gaining strong expertise in audit, risk mitigation, and strategic decision-making.
Passionate about financial innovation, he continues to advance education financing in India, creating efficient, scalable, and compliant lending ecosystems.
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