The Karnataka Minorities Development Corporation (KMDC) offers multiple financial assistance schemes for students, entrepreneurs, and self-employed individuals from minority communities in Karnataka. This guide covers the updated loan process, eligibility, interest rates, repayment terms, and application steps for 2025.
If you are a student and want for an education loan for higher study. You can apply on Vidhyalakshmi portal also
Table of Contents
What is KMDC?
The KMDC is a government body under the Government of Karnataka that provides loans at low interest rates to promote education, entrepreneurship, and economic empowerment of minorities (Muslims, Christians, Sikhs, Buddhists, Parsis, and Jains) in the state.
Major KMDC Loan Schemes in 2025
| Scheme Name | Loan Amount | Interest Rate | Target Beneficiaries |
|---|---|---|---|
| Arivu Education Loan | Up to ₹3,00,000 (course-wise limit) | 2% per annum | Students admitted via CET/NEET in Karnataka |
| Overseas Education Loan | Up to ₹20,00,000 | 3% to 5% per annum | Students pursuing higher studies abroad |
| Shrama Shakti Loan | ₹50,000 | 6% per annum | Small entrepreneurs, self-employed workers |
| Micro Loan via SHGs | ₹50,000 per member | 4% per annum | Women in Self-Help Groups |
| Self Employment Loan | ₹1,00,000 to ₹5,00,000 | 4% to 6% per annum | Youth starting small businesses |
Updated Course-wise Loan Limits – Arivu Education Loan
- MBBS / MD / MS – Up to ₹3,00,000
- BDS / MDS – Up to ₹1,00,000
- AYUSH, B.Tech, B.Arch, B.Sc Nursing, B.Pharma, D.Pharma – Up to ₹50,000
💡 Repayment starts one year after course completion. Loan renewal requires paying 12% of the previous year’s amount before the next disbursement.
Eligibility Criteria
- Applicant must be a resident of Karnataka
- Must belong to a minority community (Muslims, Christians, Sikhs, Buddhists, Parsis, or Jains)
- Family annual income should not exceed ₹8,00,000
- For Arivu: Must have secured admission through CET/NEET
Documents Required
- Aadhaar Card
- SSLC / PUC Marks Card
- Income Certificate
- Caste & Minority Certificate
- Admission Letter
- Fee Structure from Institution
- Bank Account Passbook
- Passport (for overseas loan)
How to Apply for KMDC Loan (Online Process)
- Visit the official KMDC website – kmdc.karnataka.gov.in
- Click on the “Apply Online” option
- Select the scheme you want to apply for (Arivu / Overseas / Self Employment, etc.)
- Fill in your personal, educational, and bank details
- Upload the required documents in PDF format
- Submit the application and note down the acknowledgment number
- Track your application status using your application ID
Loan Renewal Process
- Visit your District KMDC Office
- Pay 12% of the previous year’s loan amount
- Submit updated fee receipt and progress report
- Loan will be renewed for the next academic year
Important Deadlines for 2025
- Arivu Loan – Applications usually close byJune, 2026 (check official site for updates)
- Other schemes – Applications are open year-round, subject to fund availability
Official Links & Resources
KMDC Portal Loan List
There are many types of loan which provide Karnataka Minority Development Corporation. KMDC loan is divided around in 15 parts. These loans are such as
- Arivu Education Loan Scheme
- Loan for Higher Education In Foreign University
- Shrama Shakti Loan Scheme
- Shramshakti Special Women’s Scheme
- Vrutti Prostsaha Loan Scheme
- Swawalambi Sarathi Scheme
- Community Based Training Scheme
- Self Employment Scheme
- Direct Loan for Business/Enterprises
- Ganga Kalyana Scheme
- Santwana Scheme
- NBDFC
- Sikhligar’s Community Development Scheme
- Incentive Scheme ffor Sericulture Reelers
- Subsidy Scheme for Self-Help Groups of Minorities
Arivu Education Loan Scheme
KMDC loan has been opened. KMDC means Karnataka Minority Development Corporation has started asking for loan sanctions file for Karnataka students 2025 – 2026.
Students who are currently taking admission in Karnataka can apply for KMDC loan, such students will get a loan ranging from 50 thousand to 5 lakhs.
In this post you are going to get all the details like how many students will get this loan, which students are eligible for this loan, and how much loan will be available, where to apply for it and what documents will be required.
Which student will Get How Much Loan?
Students who are eligible for admission through the Karnataka Examination Authority (via CET/NEET) for M.B.B.S., M.D., or M.S. courses in government or private colleges can get a maximum loan of Rs. 3,00,000.
For students of B.D.S. and M.D.S. courses, can get loan up to Rs. 1,00,000,
Students of B-AYUSH and M. AYUSH, the loan limit is Rs. 50,000.
Similarly, students pursuing B.Arch, B.E., B.Tech, M.Tech, M.E., or M.Arch through CET/NEET can also get a loan of up to Rs. 50,000.
The same amount 50,000 applies for students of M.B.A., M.C.A., or L.L.B.
Students selected for courses like B.Sc. in Horticulture, Agriculture, Veterinary Science, Dairy Technology, Biotechnology, and related fields can also avail of a loan up to Rs. 50,000.
The same maximum amount (50000) applies for students enrolled in pharmacy courses (B.Pharma, M.Pharma, Pharma.D, D.Pharma).
Income Criteria and Interest Rates for KMDC Student Loan
The applicant’s family income should be below Rs. 8,00,000 annually.
The loan must be repaid within 48 months, starting one year after course completion, with a 2% interest rate.
How to Apply KMDC Student loan Online Step by Step Guide
Open your phone or laptop browser.
Search for KMDC in Google search.
Open the official website Karnataka Minority Development Corporation in the list.
Open this URL https://kmdconline.karnataka.gov.in/Portal/home
Scroll the page a little down.
There is a Scheme name “Arivu Education Loan Scheme “ on the home page.
Click on this scheme.
Click on “Apply Online “ button
There are two options “Apply New” and “Apply for Renewal”
Click on “Apply New” for new application and fill up the required details
KMDC Loan for Higher Education In Foreign University
This scheme is designed to offer financial assistance to minority students aspiring to pursue undergraduate or postgraduate studies at foreign universities.
The objective is to support economically weaker students from minority communities, enabling them to access higher education opportunities abroad.
The loan covers expenses such as tuition fees, travel, and living costs, helping students achieve their academic and career goals without financial constraints.
Applicants must meet eligibility criteria, including income limits and minority status, as defined by the government. This initiative aims to bridge educational gaps and promote professional advancement among minority groups.
Eligibility for KMDC Loan for Higher Education In Foreign University
- The student applying for the loan must be a resident of Karnataka.
- The student should belong to a recognized minority community, such as Muslim, Christian, Jain, Buddhist, Sikh, or Parsi.
- The applicant must have achieved at least 60% marks in their previous academic year.
- The student should have received an official offer letter from a foreign university for their studies.
- The loan will only be granted if the student provides property (building or land) as mortgage to the corporation, with the property’s value equal to or greater than the loan amount.
Important Documents for Higher Education in Foreign Loan
- Copy of Aadhaar as residential proof
- Caste/Minority Certificate Issued by the competent authority
- Income Certificate Issued by the competent authority
- SSLC Marks Card
- 12th Std PU Marks Card
- SSLC Transfer Certificate
- Present Study Certificate
- College Fee Structure
- Copy of Passport
- Copy of Visa
- Sale deeds & mother deed
- Khata Extract and Khata Certificate or mutation
- Nil encumbrance certificate in 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 registered valuer
- Affidavit from Applicant
- Joint Affidavit from the Beneficiary & the Guarantor
- Promissory Note along with D.P Note Delivery letter
Shrama Shakti KMDC Loan Scheme Details
- The scheme offers financial support to minority traditional artisans to enhance their artistic and technical skills.
- The loan helps artisans either start or expand their trade.
- A maximum loan amount of Rs. 50,000 is available at a low interest rate of 4%.
- If the artisan repays 50% of the loan within 36 months, the remaining 50% will be given as a “back-end subsidy.”
- If the loan is not repaid within 36 months, the subsidy portion will also be treated as part of the loan, requiring full repayment.
Eligibility for Shrma Shakti KMDC Loan Scheme
- he applicant must belong to a religious minority community as defined by the Government Order.
- They must be a permanent resident of Karnataka.
- The age of the applicant should be between 18 and 55 years.
- The family’s annual income from all sources should not exceed Rs. 3,50,000.
- No member of the applicant’s family should be employed by the Central or State Government.
- The applicant or their family members should not have received benefits from any other KMDC scheme in the last five years, except the Arivu Scheme.
KMDC loan is designed by the Karnataka government in various fields. The objective of the Karnataka government behind this scheme is the upliftment of minorities. There are rich and poor people in the minorities communities too. But this scheme has been made only for the poor people in which income criteria has been decided.
Conclosion
The KMDC Loan Schemes are a great opportunity for Karnataka’s minority students and entrepreneurs to access affordable finance. Make sure to apply early, keep documents ready, and follow the official process carefully to avoid delays.