The Bihar government has announced changes to the loan structure within the Student Credit Card Scheme, now offering students a maximum of Rs 4 lakh in funding for higher education. Under the revised arrangement, students can obtain up to Rs 2 lakh through the Bihar State Education Finance Corporation, while any amount exceeding Rs 2 lakh and up to Rs 4 lakh must be sourced from scheduled commercial banks.

This adjustment indicates a shift whereby the entire Rs 4 lakh will not be provided directly by the state education finance corporation. Students requiring additional funding beyond Rs 2 lakh will need to pursue loans via the banking sector. Furthermore, the government has integrated the Student Credit Card Scheme with the PM-Vidyalaxmi Portal to facilitate applications for education loans up to Rs 10 lakh, subject to the scheme’s stipulated terms.

The Bihar Higher Education Department has clarified that the assertion that accessible loans have been limited to Rs 2 lakh is incorrect. They reaffirmed that students still have the opportunity to access up to Rs 4 lakh through the combination of state finance corporation offerings and commercial bank loans, along with higher amounts that can be secured through the PM-Vidyalaxmi initiative.

Expanded Financial Options for Students

The government has indicated that the connection of the Student Credit Card Scheme to various banks and the PM-Vidyalaxmi Portal is aimed at enhancing the financial options available to students pursuing advanced education. Additionally, the scheme has been extended for a duration of five more years, which will apply from the financial year 2026-27 through 2030-31.

The budget allocated for the scheme has also seen an increase. For the financial year 2025-26, an expenditure of Rs 886 crore was approved, which has escalated to Rs 950 crore for 2026-27. This new budget reflects an increase of Rs 64 crore compared to the previous year.

It is vital to note that students whose applications have already been sanctioned will remain unaffected by these new guidelines. The Student Credit Card Scheme initially launched on October 2, 2016, under the ‘Saat Nischay’ programme, aims to assist students who have completed Class 12 and are pursuing further education.

Political Reactions and Debates

Yadav has called attention to the adjustments made to the Student Credit Card Scheme, alleging that the funding available to students has decreased. He further claimed that scholarships are being eliminated, questioning the state’s management of financial resources, debt levels, and fiscal deficit. According to his statements, Bihar recorded a fiscal deficit of 5.8 per cent of its Gross State Domestic Product (GSDP) in 2025-26, reportedly the highest among major Indian states.

In response to these allegations, the Bihar government has rejected the claim that the financial assistance available under the Student Credit Card Scheme has diminished. Officials assert that the new framework provides students with various financing alternatives, including access through the state finance corporation, commercial banks, and the PM-Vidyalaxmi scheme.

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