Patna: Bihar government has reduced the maximum education loan available under the Bihar Student Credit Card Scheme from Rs4 lakh to Rs2 lakh, with students seeking additional funding now required to apply through the central PM-VidyaLakshmi portal.
The Higher Education Department issued a notification revising the scheme and extending it for five years, from the financial year 2026-27 to 2030-31.
Under the revised rules, students can apply online to the Bihar State Education Finance Corporation for loans of up to Rs2 lakh. Applications will be processed after document verification and scrutiny at the District Registration and Counselling Centre.
Students seeking loans beyond Rs2 lakh will have to apply through the PM-VidyaLakshmi portal. District Registration and Counselling Centres will provide free assistance to students applying through the portal.
Existing applications to follow old rules
The revised provisions have been approved by the Public Finance Committee and the State Cabinet and will come into effect from the date of their publication in the official gazette.
Applications that were approved before the new rules came into force will continue to be processed under the earlier provisions.
The state has allocated Rs950 crore for the scheme for the current financial year and has set a target of increasing Bihar’s Gross Enrolment Ratio in higher education from 28.4% to 30%.
The revised scheme has also been linked to the central government’s Pradhan Mantri Uchchatar Shiksha Protsahan Yojana and Pradhan Mantri VidyaLakshmi Yojana. Eligible students who are not covered by the relevant central schemes will continue to receive assistance under the Bihar scheme.
Repayment period varies with loan size
The notification sets different repayment periods depending on the loan amount.
Loans of up to Rs2 lakh will have to be repaid within a maximum of three years after completion of the study and moratorium period.
For loans between Rs2 lakh and Rs4 lakh, the maximum repayment period will be five years, while loans between Rs4 lakh and Rs10 lakh will have to be repaid within a maximum of 10 years.
The government will also introduce a One-Time Settlement scheme to help resolve and recover pending and non-performing education loans.
The application, approval, disbursement, monitoring, repayment and grievance-redressal processes will be managed through an integrated system.
Up to 40% interest incentive for timely repayment
Students who repay their education loans on time will receive a 30% interest incentive under the revised system.
Female students, differently abled beneficiaries and transgender beneficiaries will receive an additional 10% incentive, taking the total interest incentive to 40% for timely repayment.
More than 4.81 lakh applications approved
The Bihar Student Credit Card Scheme has so far approved more than 4.81 lakh applications.
According to the government, financial assistance of around Rs8,865 crore has been provided to more than 4.15 lakh students.
Loans worth Rs15,801 crore have been sanctioned, while 3,429 educational institutions in Bihar and elsewhere have been empanelled under the scheme.
The revised structure is intended to combine state support with central education financing mechanisms while expanding access to higher education and improving loan recovery.
