Bihar News : The Bihar Student Credit Card Scheme has introduced a new process for students seeking education loans. Under the revised system, students can receive an education loan of up to Rs 2 lakh through the Bihar State Education Finance Corporation, while those requiring additional funding for higher education will have to apply through the PM-Vidyalakshmi portal.
The revised arrangement will remain effective from the financial year 2026-27 to 2030-31.
The scheme is aimed at providing financial assistance to eligible students, particularly those from economically weaker backgrounds, for pursuing higher education.
Who Can Avail the Bihar Student Credit Card Scheme?
Eligible students pursuing higher education in Bihar can avail benefits under the Bihar Student Credit Card Scheme.
The revised framework also provides for financial assistance through the state government scheme to eligible students who are not covered under relevant central government schemes.
The scheme has also been linked with the Pradhan Mantri Uchchatar Shiksha Protsahan Yojana and the Pradhan Mantri Vidyalakshmi Central Scheme.
How to Apply for an Education Loan Up to Rs 2 Lakh?
Students seeking an education loan of up to Rs 2 lakh under the Bihar Student Credit Card Scheme will have to apply through the online system of the Bihar State Education Finance Corporation.
After submitting the application, students will need to get their required documents verified at the District Registration and Counselling Centre (DRCC).
The loan approval process will move forward after the documents and application are verified. Students will also receive assistance at DRCC centres regarding the application process and related information.
What If You Need More Than Rs 2 Lakh?
Students requiring more than Rs 2 lakh for higher education will have to apply for additional education loans through the PM-Vidyalakshmi portal.
The facility to apply through the portal will also be available free of cost at DRCC centres. This will allow students to access benefits under the state government scheme as well as relevant central schemes based on their eligibility and financial requirements.
Step-by-Step Process from Application to Loan Disbursement
Step 1: Online Application
Students will have to submit an online application under the Bihar Student Credit Card Scheme. For loans up to Rs 2 lakh, the prescribed process of the Bihar State Education Finance Corporation will have to be followed.
Step 2: Document Verification at DRCC
After applying online, students will have to visit the District Registration and Counselling Centre for verification of the required documents. The application will also be examined at the centre.
Step 3: Loan Approval
The education loan will be approved based on eligibility after verification of the application and documents.
Step 4: Loan Disbursement
After approval, the education loan will be provided to the student according to the prescribed procedure.
Students will have to repay the loan after completing their studies and the prescribed moratorium period. Those who make timely repayments will also be eligible for interest incentives.
Loan Amount and Repayment Period
The revised scheme has fixed different repayment periods based on the loan amount.
- Loans up to Rs 2 lakh will have to be repaid within a maximum of three years after the study and moratorium period.
- Loans between Rs 2 lakh and Rs 4 lakh will have a maximum repayment period of five years.
- Loans between Rs 4 lakh and Rs 10 lakh will have to be repaid within a maximum of 10 years.
Up to 40% Interest Incentive for Timely Repayment
Students who repay their education loans on time will receive a 30% interest incentive.
Girl students, persons with disabilities and transgender beneficiaries will be eligible for an additional 10% interest incentive if they make payments within the prescribed period.
Eligible beneficiaries in these categories can therefore receive a total interest incentive of up to 40%.
To ensure that students do not face difficulties during the application and document verification process, assistance will be available at District Registration and Counselling Centres. The facility to apply through the PM-Vidyalakshmi portal will also be available free of cost at DRCC centres.
Students will need to keep their academic and other required documents ready while applying.
New Rules Will Not Apply to Previously Approved Applications
The revised rules will not apply to applications that have already been approved. Such applications will continue to be processed under the previous rules.
The revised provisions will come into effect from the date the notification is issued in the official gazette.
Scheme Extended for Five More Years
The Bihar government has extended the Bihar Student Credit Card Scheme for another five years. The revised scheme will remain effective from the financial year 2026-27 to 2030-31.
The state government has approved an expenditure of Rs 950 crore for the scheme during the current financial year.
The government has set a target of increasing the gross enrolment ratio in higher education in Bihar from 28.4% to 30%.
So far, more than 4.81 lakh applications have been approved under the scheme. More than 4.15 lakh students have received financial assistance of around Rs 8,865 crore.
A total of Rs 15,801 crore in loans has been approved under the scheme, while 3,429 educational institutions within and outside Bihar have been listed.
