Bihar Student Credit Card Scheme: Rs 4 Lakh Loan Limit Remains, Rules Revised

The Bihar government has revised the funding structure of the Bihar Student Credit Card Scheme, clarifying that eligible students can continue to access education loans of up to Rs 4 lakh under the scheme.

Under the revised arrangement, the Bihar State Education Finance Corporation will provide loans of up to Rs 2 lakh. Students requiring financial assistance above Rs 2 lakh and up to Rs 4 lakh will be able to access the remaining amount through scheduled commercial banks.

The change means the state finance corporation will no longer provide the entire Rs 4 lakh loan amount directly. However, the Higher Education Department has clarified that the overall financial assistance available under the Student Credit Card Scheme has not been reduced to Rs 2 lakh.

How the Revised Bihar Student Credit Card Scheme Will Work

Under the new structure, students can receive up to Rs 2 lakh through the Bihar State Education Finance Corporation. For loan requirements between Rs 2 lakh and Rs 4 lakh, students will need to approach scheduled commercial banks.

The Bihar government has also connected the scheme with the PM-Vidyalaxmi Portal, offering eligible students another option to apply for higher education loans. Under the PM-Vidyalaxmi scheme, eligible students may apply for education loans of up to Rs 10 lakh, subject to applicable terms and conditions.

The government has stated that linking the Student Credit Card Scheme with banks and the PM-Vidyalaxmi Portal is intended to provide students with additional financing options for higher education.

Scheme Extended Until 2030-31

The Bihar Student Credit Card Scheme has been extended for another five years and will continue from the 2026-27 financial year until 2030-31.

The state government has also increased the budget allocation for the scheme. A total of Rs 886 crore was approved for expenditure under the scheme during 2025-26, while Rs 950 crore has been approved for 2026-27, marking an increase of Rs 64 crore.

The government has further clarified that students whose loan applications have already been sanctioned will not be affected by the revised funding arrangement.

Bihar Government Responds to Claims Over Rs 4 Lakh Loan Limit

The revised structure has triggered a political debate over Bihar's financial condition and the future of the Student Credit Card Scheme.

Claims were made that the education loan amount available to students had been reduced from Rs 4 lakh to Rs 2 lakh. The Bihar government has rejected this interpretation, maintaining that students can still access financial assistance of up to Rs 4 lakh through a combination of funding from the state finance corporation and scheduled commercial banks.

The government has also highlighted the availability of additional education financing through the PM-Vidyalaxmi Portal for eligible students seeking higher loan amounts.

The Bihar Student Credit Card Scheme was launched on October 2, 2016, under the Saat Nischay programme to support students who have completed Class 12 and wish to pursue higher education.

With the revised funding structure, the Bihar government aims to expand financing options by combining support from the state education finance corporation, commercial banks and other education loan schemes while continuing the existing Rs 4 lakh assistance limit under the Student Credit Card Scheme.