Introduced by Janab Hakeem Abdul Hameed Saheb in 1986 to encourage and support Muslim youth on the basis of merit and means to acquire higher education HES, each year invites applications and awards deserving students scholarships for one academic year. In 2014 this scheme was converted into a loan scholarship in 2014. Beneficiaries are now required to pay back the loan amount two years after completion of education. Till 2015 a total of 577 applicants have been awarded Loan Scholarships and Rs. 29, 02,000 disbursed up till September 2015. A total of Rs. 13, 45,766 has been paid back by loan scholarship beneficiaries up till March 2016.

In 2015, Loan Scholarship was given to 23 students. The number of recipients of this scholarship for the year 2016 stands at 10.