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.

In 2022, scholarships under this scheme were awarded to 26 students. Till 2022 a total of 527 applicants have been awarded Loan Scholarships by Hamdard Education Society.