Patna: The Bihar government has revised the Bihar Student Credit Card Scheme, reducing the maximum education loan available directly under the state scheme from Rs 4 lakh to Rs 2 lakh.
Students seeking loans above Rs 2 lakh will now have to apply through the PM-Vidyalaxmi portal for the additional amount. The Higher Education Department has issued a notification extending the scheme for another five years, with the revised provisions applicable from financial year 2026-27 to 2030-31.
Under the revised system, students can apply online to the Bihar State Education Finance Corporation for loans of up to Rs 2 lakh. The application and required documents will be verified at District Registration and Counselling Centres before the loan approval process is completed.
For education loans exceeding Rs 2 lakh, students will have to apply through the PM-Vidyalaxmi portal. The District Registration and Counselling Centres will provide free assistance to students for submitting applications through the portal.
The new provisions will take effect from the date of their publication in the official gazette. Applications that were approved before the revised rules came into force will continue to be processed under the earlier provisions.
Rs 950 crore approved for 2026-27
The state government has approved an expenditure of Rs 950 crore for the scheme during the current financial year. The government aims to increase Bihar’s Gross Enrolment Ratio in higher education from 28.4% to 30%.
The revised scheme has also been linked with the Prime Minister’s Higher Education Promotion Scheme and the PM-Vidyalaxmi central scheme. Eligible students who are not covered under the relevant central schemes will continue to receive assistance under the Bihar government’s programme.
Repayment period revised
The revised guidelines specify different repayment periods based on the loan amount. Loans of up to Rs 2 lakh will have to be repaid within a maximum of three years after completion of the study and moratorium period.
Loans between Rs 2 lakh and Rs 4 lakh will have a repayment period of up to five years, while loans between Rs 4 lakh and Rs 10 lakh will have to be repaid within a maximum of 10 years.
The government will also introduce a one-time settlement mechanism to facilitate the resolution and recovery of pending and non-performing education loans.
The entire process, including application, approval, loan disbursement, monitoring, repayment and grievance redressal, will be managed through an integrated system.
Up to 40% interest incentive for timely repayment
Students who repay their education loans on time will be eligible for a 30% interest incentive. Female students, persons with disabilities and transgender beneficiaries will receive an additional 10% incentive for timely repayment, taking the total interest incentive to 40%.
Over 4.81 lakh applications approved
More than 4.81 lakh applications have been approved under the Bihar Student Credit Card Scheme so far. More than 4.15 lakh students have received financial assistance of around Rs 8,865 crore.
Overall, education loans worth Rs 15,801 crore have been sanctioned under the scheme. A total of 3,429 educational institutions in Bihar and other states have been listed under the programme.
