The Bihar government has refuted claims of reducing education loans under the Student Credit Card Scheme, stating they are ‘factually incorrect’. It clarified the scheme has expanded, with an increased budget and more financial assistance options for students.
Reports claiming a reduction in education loans available to students under the Bihar Student Credit Card Scheme are factually incorrect, the State government has said in a press release.
Expanded Financial Assistance Options
The Bihar government has further expanded the scope of financial assistance for students pursuing higher education. According to the Secretary of the Higher Education Department, an education loan of up to Rs 2 lakh will now be provided through the Bihar State Education Finance Corporation. Meanwhile, financial assistance ranging from Rs 2 lakh to Rs 4 lakh will be made available through scheduled commercial banks. Previously, the entire amount of up to Rs 4 lakh was provided solely through the Bihar State Education Finance Corporation.
The objective of integrating the Bihar Student Credit Card Scheme with the Pradhan Mantri Uchchatar Shiksha Protsahan Yojana, the PM VidyaLakshmi Portal, and banks, according to the press release “is to provide institutional financial assistance for higher education to the maximum number of students.” Additionally, students will be able to access education loans of up to Rs 10 lakh through the PM VidyaLakshmi Yojana. Thus, students now have more options for financial assistance for higher education compared to the past.
Increased Budgetary Allocation
An expenditure of Rs 886 crore was approved for the Bihar Student Credit Card Scheme in the 2025-26 financial year. For the current financial year (2026-27), an expenditure of Rs 950 crore has been approved.
Consequently, the approved expenditure for the scheme in the current financial year is Rs 64 crore higher than in the previous financial year. The figures clearly indicate that the provision for financial assistance under the Bihar Student Credit Card Scheme has increased, not decreased.
“The government’s objective is to provide accessible, comprehensive, and institutional financial assistance to students for higher education and to ensure that the maximum number of students benefit from it,” the release said. (ANI)
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