Bihar Student Credit Card Scheme: Govt denies cut in education loan limit

The Bihar government has rejected reports suggesting that the maximum education loan under the Bihar Student Credit Card Scheme has been reduced, saying students can continue to access financial assistance of up to ₹4 lakh.

The Higher Education Department has changed the mechanism for disbursing loans under the scheme, with the Bihar State Education Finance Corporation now providing loans of up to ₹2 lakh.

Students seeking loans between ₹2 lakh and ₹4 lakh can approach scheduled commercial banks under the revised arrangement. Previously, the Bihar State Education Finance Corporation provided the entire loan amount of up to ₹4 lakh.

The state government said the revised system does not lower the financial assistance available to students. Instead, it expands the sources through which students can secure education loans and is intended to increase access to institutional funding.

The Bihar government has also integrated the Student Credit Card Scheme with the Pradhan Mantri Uchchatar Shiksha Protsahan Yojana, PM VidyaLakshmi Portal and scheduled commercial banks.

Through the PM VidyaLakshmi Yojana, eligible students can additionally explore education loans of up to ₹10 lakh, providing another financing option for higher education.

The government said the changes are aimed at ensuring that a larger number of eligible students receive institutional financial assistance and can pursue higher education without being restricted by financial constraints.

The state has also increased the approved expenditure for the Bihar Student Credit Card Scheme. The government approved ₹886 crore for the 2025-26 financial year, compared with ₹950 crore for 2026-27.

The ₹64 crore increase in the approved expenditure, according to the state government, further indicates that financial support under the scheme has been expanded rather than reduced.

The government said the revised arrangements are intended to broaden access to education financing and enable more students to continue their higher education through institutional loan support.