In 30 Seconds
What changed: The scheme runs five more years, from 2026-27 to 2030-31.
The cost: Rs 950 crore approved for 2026-27, up Rs 64 crore on last year.
The loan cap: Still Rs 4 lakh per student. It did not rise.
Who it affects: Bihar students who have passed Class 12 and need an education loan.
The Bihar government will run the Bihar Student Credit Card Scheme for five more years, from 2026-27 to 2030-31. Its cabinet approved Rs 950 crore for the scheme in 2026-27.
That budget is Rs 64 crore more than last year. Bihar set aside Rs 886 crore for the scheme in 2025-26.
The cabinet cleared the extension on September 2, 2026. Chief Minister Samrat Choudhary chaired the meeting in Patna.
How much can a student borrow under the Bihar Student Credit Card Scheme?
The loan cap stays at Rs 4 lakh. It does not rise with the bigger budget. Students can still borrow up to Rs 4 lakh under the Bihar Student Credit Card Scheme.
The Bihar Student Credit Card Scheme gives education loans to students from Bihar. It began on October 2, 2016 under the Saat Nischay plan. Anyone who has passed Class 12 can apply.
Why the budget rose but the loan did not
Higher spending, same loan cap. The extra Rs 64 crore funds more loans, not a bigger one. This lets the Bihar Student Credit Card Scheme reach more students by 2030-31.
The Bihar Student Credit Card Scheme has approved 4.81 lakh applications so far. About 4.15 lakh students have received money. Total payouts stand at about Rs 8,865 crore.
Which courses does the loan cover?
The Bihar Student Credit Card Scheme covers recognised undergraduate, postgraduate, technical and professional courses. Students may study inside Bihar or outside it. Each institution must be a recognised one.
How the Rs 4 lakh loan is paid out
The Bihar State Education Finance Corporation runs the loan. Sums up to Rs 2 lakh come through the corporation. Earlier it handled the full Rs 4 lakh alone.
Anything from Rs 2 lakh to Rs 4 lakh now comes through scheduled commercial banks. This split is new for the Bihar Student Credit Card Scheme.
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The scheme also links to the PM Vidyalaxmi portal now. Students who need more than Rs 4 lakh can seek a bank loan through it. That extra borrowing sits outside the Rs 4 lakh state cap.
Key dates for the Bihar Student Credit Card Scheme
| What | When | Status |
|---|---|---|
| Scheme launched under Saat Nischay | October 2, 2016 | Running |
| Loans made interest-free | September 2025 | In effect |
| Cabinet approves five-year extension | September 2, 2026 | Approved |
| Extended scheme period | 2026-27 to 2030-31 | Upcoming |
The extension covers five financial years. It starts in 2026-27 and ends in 2030-31.
Is the loan still interest-free?
The Bihar Student Credit Card Scheme became interest-free in September 2025. General category students paid 4 per cent before, and female, differently-abled and transgender applicants paid 1 per cent. Every applicant now pays no interest.
The repayment period grew longer in 2025 too. Loans up to Rs 2 lakh are now repaid over 84 months, not 60. Bigger loans run up to 120 months.
Is Rs 4 lakh enough for a degree in Bihar, or should you plan for more?
Rs 4 lakh is the state cap, and for many degrees inside Bihar it covers the full course. A costlier or out-of-state course can run past Rs 4 lakh. For that gap, the PM Vidyalaxmi portal route lets a student add a bank loan on top.
The same cabinet passed 27 items on September 2. One turns about 300 BEd colleges into multidisciplinary degree colleges. It also extended the Kushal Yuva Programme with Rs 430.08 crore.
Frequently Asked Questions
What is the new budget for the Bihar Student Credit Card Scheme?
The Bihar cabinet approved Rs 950 crore for the Bihar Student Credit Card Scheme in 2026-27. This is Rs 64 crore more than the Rs 886 crore set aside in 2025-26. The scheme is extended for five years, from 2026-27 to 2030-31.
Has the Bihar Student Credit Card loan amount increased above Rs 4 lakh?
No. The loan cap under the Bihar Student Credit Card Scheme stays at Rs 4 lakh. The bigger budget funds more loans, not a larger loan per student. A student who needs more can seek a bank loan through the PM Vidyalaxmi portal.
Who can apply for the Bihar Student Credit Card Scheme?
A student who is a resident of Bihar and has passed Class 12 can apply for the Bihar Student Credit Card Scheme. The loan covers recognised undergraduate, postgraduate, technical and professional courses. The student may study inside or outside Bihar.
Is the Bihar Student Credit Card loan still interest-free?
Yes. Bihar made the Bihar Student Credit Card loans interest-free for all applicants in September 2025. Earlier, general category students paid 4 per cent, while female, differently-abled and transgender applicants paid 1 per cent under the scheme.
How many students have benefited from the Bihar Student Credit Card Scheme?
The Bihar Student Credit Card Scheme has approved 4.81 lakh applications so far. About 4.15 lakh students have received money under it. The total paid out stands at about Rs 8,865 crore since the scheme began in 2016.
Last verified: September 8, 2026
Disclaimer: Dates, fees, cutoffs and eligibility can change without notice. Check with the Bihar Education Department before you act.
