Devaraj Arasu Education Loan For Students: Easy Guide

Many bright students in Karnataka want to study further but face one big problem – money. College fees, hostel charges, books, and other expenses are very high today. To support students from backward classes and low-income families, the Karnataka government provides the Devaraj Arasu Education Loan for Students.

This blog will explain this scheme in easy English, so that any student or parent can understand it clearly. We will cover:

What is Devaraj Arasu Education Loan?
Who can apply (eligibility)?
How much loan you can get
Interest rate and repayment rules
Step-by-step process to apply
Documents required
Example with EMI and interest calculation
Important tips before applying

What Is Devaraj Arasu Education Loan For Students?

The Devaraj Arasu Education Loan is a special loan scheme created for students belonging to backward classes in Karnataka. The main goal is to help students continue their higher education in India or abroad, even if their family income is low.

This education loan is different from normal bank loans because:

The interest rate is very low (in some cases around 2% per year).
In some schemes, the loan can be interest-free for the student.
The government supports and manages the scheme through its backward classes development corporation and related departments.

The loan generally covers:

College tuition fees
Exam fees and registration fees
Hostel and mess charges
Books and stationery
Other compulsory educational charges

So, with this scheme, a student can complete their course without worrying too much about immediate money pressure.

Who Can Apply? (Eligibility Criteria)

Not every student can apply. This scheme is mainly for backward class students from Karnataka. The common eligibility conditions usually include:

Domicile (State Resident)

The student must be a permanent resident of Karnataka.
In most cases, a domicile certificate or similar proof is required.

Family Income Limit

The annual family income should be within a certain limit (for example, within a few lakhs per year).
This limit can be different for different categories.
Students need to show an income certificate issued by a competent authority (like Tahsildar).

Educational Qualification

The student must have passed the previous qualifying exam (like 10th, 12th, diploma, degree etc.) with at least the minimum percentage required by the scheme.
Some relaxation in marks may be given for certain reserved categories.

Admission in Recognised Institution

The student must have secured admission to a recognised college or university, either in India or sometimes abroad, depending on the specific scheme.
The course should be an approved diploma, undergraduate, postgraduate, professional, or technical course.

If a student meets these conditions, they can usually apply for the Devaraj Arasu Education Loan.

What Expenses Does The Loan Cover?

The Devaraj Arasu Education Loan is designed to cover most of the important academic and living expenses of the student during the course. These may include:

Tuition fees charged by the institute
Admission and registration charges
Exam fees and lab fees
Hostel fees and mess charges (if the student stays in hostel)
Library fees, lab charges and other compulsory college fees
Books and stationery
In some cases for abroad education, travel and visa-related expenses may also be supported, depending on the scheme rules

Because of this wide coverage, the student can focus on studies instead of worrying about multiple expenses.

Loan Amount & Interest Rate

The loan amount and interest rate can change based on:

Type of course (diploma, degree, professional, PG, foreign education, etc.)
Category of the student
Specific sub-scheme under the Devaraj Arasu education loan umbrella

But in general:

The loan amount can go up to a few lakhs of rupees or more, depending on the course and fee structure.
The interest rate is much lower than a normal bank loan. For many students, it may be around 2% per year, and some parts may be interest-free or have interest subsidy during the study period.

The government’s idea is to make education affordable and accessible for backward class students by reducing the loan burden.

How To Apply For Devaraj Arasu Education Loan (Step-by-Step)

The exact portal or form name may change over time, but the basic application process usually looks like this:

Step 1: Check Eligibility

Confirm that you belong to a recognised backward class.
Confirm that you live in Karnataka and have proper documents.
Check whether your course and college are covered under the scheme.
Make sure your family income is within the allowed limit.

Step 2: Collect Required Documents

Before applying, keep clear photocopies and scanned copies (if online) of all required documents such as:

Aadhaar card
Income certificate
Caste certificate
Domicile certificate / address proof
Previous exam mark sheets and certificates
Admission letter from college / university
Fee structure from the institution
Bank passbook copy
Passport-size photographs

(We will give a detailed list in the next section.)

Step 3: Register On The Official Portal / Approach The Office

Visit the official website or online portal for the scheme (backsward classes board / corporation portal, as notified by the government).
If an online portal is not available, visit the concerned office, such as the backward classes development corporation office or a notified help centre.

Step 4: Fill The Application Form

Fill in all personal details: name, address, category, family income, etc.
Enter educational details: previous qualifications, marks, new course, college/institute details.
Enter the details of loan amount you need as per the fee structure.
Upload or attach the required documents.

Step 5: Submit The Form

For online application, submit the form and take a printout of the acknowledgement or reference number.
For offline, submit the filled application form and documents at the official office or centre.

Step 6: Verification & Sanction

Your documents and details are verified by the authorities.
If everything is correct and you meet the eligibility, your loan is sanctioned.
You may get a sanction letter that mentions the loan amount, conditions, and repayment terms.

Step 7: Loan Disbursement

The loan amount is often paid directly to the institution (for fees) or into the student’s bank account for specific expenses, as per scheme rules.
Disbursement can be done in installments each semester or year.

Documents Required

While the exact list can change slightly, here are the common documents usually required for Devaraj Arasu Education Loan:

Identity Proof
- Aadhaar card
- PAN card (if available)
Address / Domicile Proof
- Ration card / Aadhaar / voter ID
- Domicile certificate (to show you are from Karnataka)
Caste Certificate
- Certificate showing you belong to backward class category recognised by the state government.
Income Certificate
- Issued by a competent authority (like Tahsildar) showing the annual family income.
Educational Documents
- Mark sheets of 10th, 12th, diploma, degree etc.
- Passing certificates
- Any entrance exam scorecard if relevant.
Admission Proof
- Admission letter / offer letter from the college or university
- Fee structure on college letterhead.
Bank Details
- Bank passbook copy with account number and IFSC code.
Photographs
- Recent passport-size photos.

Always carry both originals and photocopies for verification.

Example Of EMI & Interest Calculation (In Simple Way)

Let us understand with a simple example how the loan and interest may work.

Note: This is only a sample calculation to help you understand the idea in an easy way. The actual numbers will depend on the real interest rate, loan amount, and rules of the scheme at the time of your application.

Example Situation

Loan amount: ₹2,00,000
Interest rate: 2% per year (concessional rate)
Course duration: 2 years
Moratorium (grace) period: Course duration + 1 year (you start paying 1 year after the course ends)
Repayment period: 5 years

We will assume simple EMI-style repayment for easy understanding.

Interest During Study + Moratorium Period

Total time before repayment starts = 2 years (study) + 1 year (moratorium) = 3 years

Annual interest = Principal × Rate
= ₹2,00,000 × 2%
= ₹2,00,000 × 2 / 100
= ₹4,000 per year

Total interest for 3 years = ₹4,000 × 3 = ₹12,000

So, at the end of 3 years, your total outstanding loan =
Principal + Interest = ₹2,00,000 + ₹12,000 = ₹2,12,000

(In some schemes, part of this interest may be subsidised or paid by the government, which reduces your real burden. But here we are assuming the student pays all 2% interest just to understand the math easily.)

EMI Over 5 Years

Now you have to pay back ₹2,12,000 in 5 years.

To keep it very simple, we’ll use a rough method:

Total amount = ₹2,12,000
Total months in 5 years = 5 × 12 = 60 months

Approximate monthly EMI = Total amount ÷ Number of months
= ₹2,12,000 ÷ 60
≈ ₹3,533 per month (approx.)

So, in this simple example, you would pay around ₹3,500–₹3,600 per month for 5 years to close the loan.

If the interest is subsidised fully or partially by the government, then your monthly EMI will be even lower, because you will mainly repay the principal amount.

Benefits Of Devaraj Arasu Education Loan For Students

Here are the main advantages of this scheme:

Lower Interest Rate

The interest rate is much lower compared to normal education loans from private banks. This reduces the total cost of education and makes repayment easier.

Support For Backward Class Students

The scheme is specially targeted to help students from backward classes who often face social and financial disadvantages. It supports social justice and equal opportunity.

High Coverage Of Education Cost

It can cover tuition fees, hostel, exam fees, books, and other compulsory charges. This gives complete financial support for the course.

Repayment After Course

Most education loans under such schemes give a moratorium period. That means you start repaying only after finishing the course, and sometimes there is an extra 6–12 months grace period. This allows you to first find a job and then start paying EMIs.

Encourages Higher Education

Because of financial support, students are encouraged to:

Join professional and technical courses
Go for higher education like PG or professional degrees
Even consider studying abroad, if they are eligible under that scheme

Important Tips Before You Apply

Here are some practical tips for students and parents:

Read Latest Guidelines
- The rules, interest rate, and income limits may change from time to time.
- Always check the latest notification or official website before applying.
Prepare Documents In Advance
- Get your caste and income certificates renewed if they are old.
- Keep all mark sheets and certificates properly arranged.
Choose Course And College Wisely
- Take admission in a recognised and reputed institute.
- Check the placement record and quality of education.
Borrow Only What You Need
- Do not take a very high loan just because it is available.
- Calculate your future repayment ability and take a reasonable amount.
Keep A Personal File
- Maintain a file with all loan-related documents: application form copy, sanction letter, fee receipts, etc.
- This will help you track your loan easily.
Focus On Studies
- Remember, this is an opportunity given by the government.
- Use it seriously and focus on scoring good marks and getting a good job so that repayment becomes easy.

Conclusion

The Devaraj Arasu Education Loan for Students is a powerful support system for backward class students in Karnataka who want to continue their higher education but face financial problems. With low or subsidised interest, wide coverage of education expenses, and repayment after the course, this scheme removes a big burden from students and parents.

If you are eligible, this loan can help you:

Join a good college
Complete your course without dropping out due to lack of money
Build a strong future with better career opportunities

Take time to understand the eligibility, interest rate, and repayment rules, prepare your documents, and then apply through the official channel. Used wisely, the Devaraj Arasu Education Loan can become a stepping stone towards your dreams and a better life for your family.