Patna, Aug 29: The Bihar government on Saturday restored the ₹4 lakh education loan limit under the Bihar Student Credit Card Scheme, reversing its decision to halve the amount to ₹2 lakh just 10 days ago.
The Higher Education Department issued a fresh notification on August 29, cancelling its earlier order dated August 19, which had reduced the loan limit available through the Bihar State Education Finance Corporation to ₹2 lakh.
Under the revised decision, students will once again be eligible for education loans of up to ₹4 lakh through the State Education Finance Corporation, with the facility continuing to be completely interest-free.
The notification, issued by Higher Education Department Secretary Rajiv Roshan, said the government had reconsidered the benefits being provided to students under the scheme and, following detailed deliberations, decided to withdraw the earlier order.
“The state government had reconsidered the benefits being provided to students under the Student Credit Card Scheme,” the department said.
“After extensive deliberation, the decision was made to rescind the previously issued order,” it added.
The reversal is expected to bring relief to students, particularly those from financially weaker backgrounds who depend on the scheme to pursue higher education.
The government had on August 19 reduced the Finance Corporation’s loan limit from ₹4 lakh to ₹2 lakh. Under the revised arrangement, students requiring more than ₹2 lakh were to obtain loans from commercial banks through the Centre’s PM Vidyalakshmi portal.
The move had triggered concerns over the potential interest burden on students, as loans from commercial banks generally carry interest, unlike the interest-free facility available through the state Finance Corporation.
The earlier arrangement had also become a political issue, with Bihar Assembly Leader of Opposition Tejashwi Yadav criticising the government and alleging that financial constraints were behind the reduction in education loans and cuts in student scholarships.
The state government had subsequently clarified that the overall education loan facility had not been discontinued, but that the mode of financing for loans above ₹2 lakh had been changed.
With Saturday’s notification, however, the previous system has effectively been restored. Students can now access up to ₹4 lakh through the Bihar State Education Finance Corporation under the Student Credit Card Scheme without paying interest.
The government’s decision marks a swift reversal of its earlier policy and is likely to ease concerns among students preparing to pursue higher and professional education.
