Bihar Student Credit Card Scheme: Rs 4 Lakh Education Loan Limit Unchanged

The Bihar government has clarified that the maximum education loan available under its Student Credit Card Scheme has not been reduced. Bihar Chief Minister Samrat Choudhary, in a recent post on his X (formerly Twitter) handle, has reiterated that students can access up to Rs 4 lakh for higher education. Under the revised arrangement, financing will be split between the Bihar State Education Finance Corporation and scheduled commercial banks.

Loan Structure Revised

The Bihar State Education Finance Corporation will provide education loans of up to Rs 2 lakh under the scheme. For loans ranging from Rs 2 lakh to Rs 4 lakh, students will approach scheduled commercial banks.

Earlier, the Bihar State Education Finance Corporation provided the entire loan amount of up to Rs 4 lakh. The change is part of the government's move to integrate the Student Credit Card Scheme with the Pradhan Mantri Uchchatar Shiksha Protsahan Yojana, PM VidyaLakshmi Portal and banks.

The revised structure changes the channel through which funding is provided, while the maximum loan available under the Student Credit Card Scheme remains at Rs 4 lakh.

What Is Bihar Student Credit Card Scheme

The Bihar Student Credit Card Scheme provides financial assistance to students seeking higher education. The scheme is intended to help students meet education-related expenses through loans when their families may not have sufficient funds to cover the cost of higher studies.

Under the scheme, eligible students can seek an education loan of up to Rs 4 lakh. The latest changes alter the lending arrangement but do not lower this ceiling.

Students Can Access Loans Up To Rs 10 Lakh

Students can also seek education loans of up to Rs 10 lakh through the PM VidyaLakshmi Yojana. The government has linked the Bihar scheme with the central platform and banks to provide students with additional channels for education financing.

This gives students seeking funding for higher education access to the Bihar Student Credit Card Scheme as well as eligible loans available through the central education loan framework.

Scheme Allocation Rises To Rs 950 Crore

Choudhary has also clarified that students and parents should not interpret the revised lending structure as a reduction in the Rs 4 lakh assistance available under the Bihar Student Credit Card Scheme.

The Bihar government had approved Rs 886 crore for the Student Credit Card Scheme in the 2025-26 financial year.

For 2026-27, the approved expenditure has been increased to Rs 950 crore, which is Rs 64 crore higher than the previous year's allocation.