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Education & Learning; Banking,Financial Services and Insurance

Overseas Educational Loan Scheme

The "Overseas Educational Loan Scheme" objective is to provide financial/loan assistance to students belonging to minority communities who are pursuing graduate or postgraduate degree courses in recognized universities abroad.

Authority

State/ UT

Region

Karnataka

Status

Verified 2026

Updated

March 2026

What you get

- The loan amount will be provided up to ₹20,00,000/- at a zero interest rate.

Who can apply

The student should be a resident of Karnataka State.; The student should belong to a minority community (Muslim, Christian, Jain, Buddhist, Sikh and Parsi).; The student should have secured at least 60% marks in the previous year.; The student should have received an offer letter from a foreign university.; Loans will be provided only on mortgage of property (building/land) to the corporation. The value of the property should not be less than the loan amount.; The students who have not received a scholarship from the Directorate of Minorities.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the Overseas Educational Loan Scheme?

It provides financial assistance to minority community students in Karnataka for pursuing higher education abroad.

Who is eligible for the Overseas Educational Loan Scheme?

Students who are Karnataka residents, belong to minority communities, have 60% marks, and meet other criteria.

Which minority communities are covered under this scheme?

The scheme includes Muslim, Christian, Jain, Buddhist, Sikh, and Parsi communities.

What is the maximum loan amount that can be availed under this scheme?

The maximum loan amount is up to [?]20,00,000/-.

Is there an interest rate on the loan provided under this scheme?

Loans are provided at a zero-interest rate if the family income is below [?]8,00,000/-.

Is it mandatory to mortgage a property to avail of this loan?

Yes, a property must be mortgaged, and its value should cover the loan amount.

Can students who have already received a scholarship from the Directorate of Minorities apply for this loan?

No, those who have received a scholarship are not eligible.

Are diploma or short-term courses eligible for this loan?

No, only degree courses are eligible under this scheme.

How is the loan amount disbursed to the student?

The loan amount is disbursed either to the student's account or directly to the institution.

What documents are required to apply for this loan?

Key documents include proof of residence, minority status, academic records, income proof, and mortgage property papers.