Students selected for admission to various courses/programmes in the university are eligible to receive two merit scholarships which are paid to top two merit holders. Merit scholarship in favour of previous year paid students is granted on the basis of merit in the EnteranceTest to the course and in the final year it is awarded on the basis of merit in the M.A/ M.Sc./ M.Com./ MLIS Previous/ Ist & 2nd semester examination. the scholarship is granted from the date of admission to the course upto the last date of the examination, subject to a maximunm period of 12 calendar months.
There are four scholarships in each Department/ Research Centre awarded for carrying out research leading to the award of Ph.D./M.phil. degrees in addition to contingency grant payable annually for meeting miscellaneous expenses.
The university has also adopted a sheme called "Student Aid Fund" under which a financial assistence is extended to students, particularly the meritorious ones who come for low income groups. The kashmir University Alumni Association also provides financial assistence to students with a poor economic background with preference being give to students who are orphans.