Financial Assistance to the Teachers or Lecturers Children who taken loan from Nationalised Banks for studying Medical or Engineering Courses is a support scheme run by the Karnataka government for children of teachers working in government and aided institutions. It helps by covering the interest on educational loans taken for medical, engineering, and postgraduate studies, up to a maximum of ₹50,000 in the year the course is completed.
This scheme is handled by the Karnataka State Teachers Benefit Fund under the Department of School Education. The amount is paid directly to the bank account linked to the educational loan, so the family does not have to carry the full interest burden on its own.
Financial Assistance to the Teachers or Lecturers Children who taken loan from Nationalised Banks for studying Medical or Engineering Courses
Financial Assistance to the Teachers or Lecturers Children who taken loan from Nationalised Banks for studying Medical or Engineering Courses provides financial support to the children of teachers or lecturers working in government and aided primary, secondary, graduate, and post-graduate institutions. The main aim is to reduce the money pressure on families by refunding the interest charged on educational loans for professional courses such as medicine and engineering, including postgraduate courses.
The benefit is given only in the year of completion of the course. This means a student who finishes the final year of medical, engineering, or a postgraduate program can apply for the interest refund at that point. The scheme has been running for many years, and fresh circulars are issued regularly for each academic year.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Financial Assistance to the Teachers or Lecturers Children who taken loan from Nationalised Banks for studying Medical or Engineering Courses |
| Level | State |
| Beneficiary State | Karnataka |
| Category | Education and Learning |
| Target Beneficiary | Individual |
| Benefit Type | Cash transfer |
| Maximum Benefit | ₹50,000 |
| Nodal Department | Department of School Education |
| Official Portal | kstbfonline.karnataka.gov.in |
Benefits
This scheme gives one-time financial support of up to ₹50,000 to cover the interest component of an educational loan taken from a nationalised bank. The government transfers the approved amount directly to the bank account of the borrower.
Since the refund is given in the year of course completion, the student gets the support at the point when the loan repayment pressure is high. This makes it easier for teacher families to manage the cost of professional education.
Eligibility
To qualify for this support, the following conditions should be met:
- The parent must be a teacher or lecturer serving in a government or aided institution and hold a life membership of the Karnataka State Teachers Benefit Fund.
- The student should have passed every year or semester of the course on the first attempt.
- The student must have completed schooling from 1st to 10th standard in government or aided schools within Karnataka.
- The family should have taken an educational loan from a nationalised bank for professional medical or engineering studies.
- The loan must be for a course conducted within India.
Only one child per family can receive this assistance, and the student should be in the final year of the medical, engineering, or postgraduate program at the time of applying.
Exclusions
Children of retired teachers are not eligible to apply for this scheme. Also, applications are not accepted once the loan interest has already been cleared.
Application Process
Follow these steps to apply for the grant:
STEP 1 - Go to the official online portal at kstbfonline.karnataka.gov.in and log in with the institution or teacher login details.
STEP 2 - Download the official application form and fill in the required details for both the student and the teacher parent.
STEP 3 - Gather all required documents, including certified mark sheets, loan records, the teacher's HRMS copy, and school proof.
STEP 4 - Get the proposal signed and recommended by the controlling officer and the head of the institution.
STEP 5 - Submit the completed application along with the verified documents to the Karnataka State Teachers Benefit Fund office or through the online portal.
STEP 6 - Collect an acknowledgment receipt that includes the date of submission and the unique identification number.
Documents
You will need the following documents for the application:
Certified mark sheets for all years or semesters, proof of the educational loan from a nationalised bank, the fee payment receipt, an attested school attendance certificate for 1st to 10th grade, the teacher's life membership card, HRMS copy or recruitment order, and an attested copy of the bank passbook.
References
View 2025-26 Higher Education Assistance Circular
FAQ's
Who is eligible for this scheme?
Children of teachers or lecturers currently working in government or aided institutions who hold a life membership of the Karnataka State Teachers Benefit Fund are eligible.
What is the maximum financial assistance provided?
You can receive up to ₹50,000 to help repay the interest on the educational loan.
Which types of loans are covered?
The scheme covers educational loans taken from nationalised banks specifically for medical and engineering professional courses.
Does this scheme cover postgraduate courses?
Yes, the scheme includes both undergraduate and postgraduate courses.
Can retired teachers apply for their children?
No, this scheme is strictly for children of currently serving teachers.
Are there academic requirements?
Yes, the student must have passed all years or semesters of the degree on the first attempt.
Is there an income limit for applicants?
No, there is no income limit specified for this scheme.
How many students per family can benefit?
Only one student per family may receive the financial assistance.
Is this applicable to students studying outside Karnataka?
Yes, provided the loan was taken from a nationalised bank within India.
Is this available for courses other than medicine or engineering?
No, the assistance is reserved for medical and engineering professional courses, along with postgraduate programs.
Do I need to repay this assistance?
No, this is a grant provided to cover interest expenses, so repayment is not required.
What is the duration of eligibility?
Only students in their final year of study are permitted to apply.
Can both parents apply if both are teachers?
No, only one parent can apply on behalf of a child.
How is the money disbursed?
The government transfers the amount directly into the bank account associated with the loan.
What if the loan interest is already paid?
Applications will not be accepted if the interest has already been cleared.
Can I apply if I did not attend a government school?
No, completion of 1st to 10th standard in a government or aided school is a mandatory requirement.
Is there a deadline to apply?
You should submit the application within the same academic year that you complete the final year.