Bihar student credit card loan rules changed, government clarifies Rs 4 lakh limit

Bihar has split Student Credit Card Scheme funding between its finance corporation and banks. The shift has sparked political claims over the state's finances, which the government has disputed.The scheme has also been extended for another five years and will continue from financial year 2026-27 to 2030-31 (Image: pexels.com)The Bihar government has changed the loan structure under the Student Credit Card Scheme. Under the new arrangement, students will get up to 2 lakh through the Bihar State Education Finance Corporation, while the amount between Rs 2 lakh and Rs 4 lakh will be available through scheduled commercial banks.The change means that the state education finance corporation will no longer provide the entire Rs 4 lakh directly. Students who need more than Rs 2 lakh will have to use the bank route for the additional amount. The government has also linked the scheme with the PM-Vidyalaxmi Portal, through which eligible students can apply for education loans of up to 10 lakh, subject to the scheme's conditions.The Bihar Higher Education Department has, however, clarified that it is not correct to say that the total education loan available to students has been reduced to Rs 2 lakh. According to the department, students can still access financial assistance up to 4 lakh through the state finance corporation and banks, while the PM-Vidyalaxmi scheme provides another option for higher loan amounts.Under the revised system, up to Rs 2 lakh will be provided through the Bihar State Education Finance Corporation, and financial assistance from Rs 2 lakh to Rs 4 lakh will be provided through scheduled commercial banks. MORE FINANCING OPTIONS FOR STUDENTSThe government said the Student Credit Card Scheme has been connected with banks and the PM-Vidyalaxmi Portal to give students more options for arranging funds for higher education.The scheme has also been extended for another five years and will continue from financial year 2026-27 to 2030-31. The government has pointed to an increase in the budget approved for the scheme. In 2025-26, 886 crore was approved for expenditure under the Student Credit Card Scheme. For 2026-27, 950 crore has been approved. This is an increase of 64 crore compared with the previous financial year.The government has also said that students whose applications have already been sanctioned will not be affected by the new arrangement.The Student Credit Card Scheme was launched on October 2, 2016, under the 'Saat Nischay' programme to help students who have passed Class 12 and want to pursue higher education.The issue has also triggered a political reaction. RJD leader Tejashwi Yadav has claimed that Bihar is facing a serious financial crisis. He alleged that the state's debt has increased sharply and that the government is facing pressure in making payments to employees, pensioners, contractors and for development work.Yadav also referred to the Student Credit Card Scheme and claimed that the amount available to students has been reduced. He alleged that scholarships are also being discontinued.Yadav questioned the state's management of expenditure, debt and the fiscal deficit. He claimed that Bihar recorded a fiscal deficit of 5.8% of GSDP in 2025-26, which he described as the highest among major states.He also alleged that the NDA government has taken large loans over the past two years despite the state's financial pressure. Yadav questioned how government funds are being used and accused the state government of financial mismanagement and corruption.The Bihar government has rejected the claim that financial assistance under the Student Credit Card Scheme has been reduced. It has said that the new system provides students with multiple financing options through the state finance corporation, banks and the PM-Vidyalaxmi scheme.- EndsPublished By: Mridusmita DekaPublished On: Aug 21, 2026 18:19 IST