In the year 1986, National Education Policy identified Katihar district in Bihar for special emphasis on development and education. The Ministry of Minority Affairs, as well, pointed out that despite having enough potentiality, this minority concentrated backward region is lagging much behind in sectors such as education and healthcare.

In accordance with the recommendation of Sunil Mukherjee Committee & Mudaliar Committee, constituted during the era of the then Chief Minister of Bihar, that a medical college be established in Katihar or Nalanda Medical College be shifted from Patna to Katihar, Al-Karim Educational Trust, Patna was established in the year 1986, and subsequently Katihar Medical College was established by the trust in May 1987. Notably, the location of the college was chosen Katihar, as it is among the most backward regions of Bihar, to serve the poor and the needy and for upliftment of the region.

The trust established Al-Karim University, Katihar in 2018 through Bihar Private Universities Act, 2013 and the University Grants Commission (UGC) recognised the university in 2019. Soon after the establishment of the university, Katihar Medical College, Katihar was inducted into the university. The university continues to establish academic courses and work on research for a better future.