Education Loan in Bihar

Students in Bihar often face financial constraints when pursuing higher education. To bridge this gap, the Government of Bihar, in collaboration with various financial institutions, offers a range of Bihar government student loan schemes. These schemes are designed to support the students aspiring higher education in India or abroad.

One of the major flagship programs of Bihar government schemes is the “Bihar Student Credit Card Scheme”. Under this scheme, eligible students can avail themselves of loans up to INR 4 lakh at minimal interest rates. Explore numerous education loan options available, eligibility criteria, interest rates, and many more. 

Top Lenders Providing Education Loans in Bihar For Studies in India

There are many lenders who provide education loan in Bihar along with Bihar government schemes. Below are some the the prominent lenders working towards making higher education accessible and more affordable. Explore their interest rates, margin money, and processing fees. 

Top Lenders Providing Education Loans in Bihar For Abroad Studies

There are various lenders who provides study loan in Bihar for the students aiming to pursue their higher education from abroad. Explore their interest rates, margin money, maximum loan amount offered, and processing fee. 

Top Features of Education Loans from Banks and NBFCs in Bihar

Take a look at various features offered by the leading banks and NBFCs to students who secure education loan in Bihar.

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  Expenses Covered - Education loans offered by these lenders cover a range of expenses including tuition fees, living expenses, travel expenses, and other study-related expenses.

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  Moratorium Period - The moratorium period in education loans refers to a time period wherein students are exempted from paying EMIs. The Reserve Bank of India has made it mandatory for public sector banks to provide a moratorium period on education loans. This period usually covers course duration plus 6 to 12 months, depending on the lender. 

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  Margin Money - Lenders usually do not cover 100% of the educational expenses of the students, instead they require borrowers to bear a certain percentage of the total cost. For eg. - SBI requires a 10% margin from the students, if your loan amount is INR 50 lakhs then you would have to contribute INR 5 lakhs towards your loan amount. 

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  Tax Benefit - Students can claim tax benefits under section 80E of the Income Tax Act. It is a provision that allows individuals to claim tax deductions on education loans. 

Documents Required for an Education Loan in Bihar

You should gather below mentioned documents beforehand to apply for a student loan in Bihar. 

Documents Required to be Submitted by the Student:

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  Completed and signed education loan application form.
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  Passport-size photograph (3 copies).
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  Identity proof - copy of PAN card/ aadhaar card/ voter ID/ driver license
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  Address proof - electricity bill/ domicile certificate/ landline telephone bill/ aadhar card/ driving license/ passport. 
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  Marksheets and pass certificates up to the last qualifying examination.
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  Admission letter from the institution where the student has been accepted for the course.
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  Course details including fees, duration, etc.
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  Visa for studies abroad.
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  Passport copy.
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  Standardized test scores and English language proficiency test scores (TOEFL, GRE, GMAT, IELTS).

Documents Required to be Submitted by the Co-Applicant:

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  Passport-size photograph (3 copies).
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  Copy of PAN card.
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  A copy of the bank account statement and bank passbook is needed.
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  Form 16/ITR/ income certificate.
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  Loan statements for any existing liabilities from the previous year.
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  Salary slip for the last 3 to 6 months for a salaried co-applicant. 

Collateral Documents Required for a Secured Education Loan in Bihar:

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  The title deed of the property offered as collateral.
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  Proof of ownership of the property (land/building).
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  Valuation report prepared by a bank-approved property evaluator.
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  Legal documents regarding the property's legal status.

Bihar Government Education Loan Scheme

There are various Bihar Government Education Loan Schemes that are designed to provide financial assistance to students in Bihar who wish to pursue higher education in India or abroad. The most prominent scheme under this initiative is the Bihar Student Credit Card Scheme. 

Bihar Student Credit Card (BSCC) Scheme:

The Student Credit Card Yojna in Bihar was launched by the Government of Bihar with the aim of making higher education accessible. Students can take advantage of this scheme by securing loan amounts of up to INR 4 lakhs that too at negligible interest rates. 

Bihar Student Credit Card Interest Rates:

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  1% per annum for female, transgender, and differently-abled (Divyang) students.

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  4% per annum for general students.

Bihar Student Credit Card Eligibility Criteria:

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  Must be a permanent resident of Bihar.
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  Age between 16 to 25 years.
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  Must have passed the 12th standard or equivalent.
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  Must have secured admission to a recognized institution.
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  Must complete the entire course. 

How to Apply for Student Credit Card Scheme?

Follow the below-mentioned steps to apply for a student credit card in Bihar. 

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  Visit the official website of the Bihar Student Credit Card Scheme and click on the ‘New Applicant Registration’ button.
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  Register yourself and you will receive the username and password via email and SMS.
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  Log in using your username and password and choose the ‘BSCC’ option to apply. 
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  Fill out the application form by entering all the requested details.
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  Upload necessary documents as specified in the application form.
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  The District Registration and Counseling Center (DRCC) will schedule an appointment and notify you by email and SMS about the visit date.
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  Visit the DRCC for document verification.
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  Once verification is completed, the DRCC will send you an email with the date to visit the center to collect the ‘Student Credit Card’ and loan sanction letter.
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  The loan amount will be disbursed once you complete the documentation formalities after collecting the ‘Student Credit Card’ and the bank’s sanction letter from the DRCC.

Bihar State Cooperative Bank Ltd. Education Loan Scheme

The scheme was launched by the Bihar State Cooperative Bank Ltd. to provide financial assistance to students of Bihar. The scheme offers loan amounts of up to INR 10 lakhs for studies in India and INR 30 lakhs for abroad studies. The Bank does not charge any processing fee for education loans. 

Bihar State Cooperative Bank Ltd. Education Loan Interest Rates:

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  9.50% for government employees.
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  11% per annum for general customers.

Bihar State Cooperative Bank Ltd. Education Loan Eligibility Criteria:

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  Admission to a recognized educational institution approved by AICTE/UGC.
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  Must be an Indian citizen.
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  Off-campus/off-Shore campus/study center/distance education/foreign universities
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  Imparting technical education in India.

Bihar State Cooperative Bank Ltd. Education Loan Application Process:

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  Visit the nearest Bihar State Cooperative Bank branch where you plan to apply for an education loan.
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  Request the Education Loan Application Form from the bank branch and fill out the form.
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  Submit the completed application form along with all the required documents.
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  The bank will review your application and verify the documents. You might be required to attend a personal discussion with the bank officer or provide additional information.
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  Once the application is verified, the bank will process the loan request and if approved, the loan will be sanctioned.
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  Sign the loan agreement that outlines the terms and conditions of the loan, repayment schedule, interest rates, and other responsibilities.
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  Upon completing all formalities, the loan amount will be disbursed directly to your institution, as per the fee structure and the terms mentioned in the loan agreement.

Smart Ways to Increase Your Education Loan Approval in Bihar

Getting approval on your education loan application could be challenging, especially in regions like Bihar due to the rigid eligibility criteria of the lenders. Below are some of the proven ways that will help you secure an education loan in Bihar.

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  You should maintain a strong academic record since banks evaluate the profile of the student. 
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  Ensure your university/college is approved by AICTE/UGC for education loans in India or listed in government-recognized foreign university lists.
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  Lenders generally approve education loans for students enrolled in STEM and management courses. 
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  Your co-applicant should have a stable source of income.
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  Ensure that your co-applicant has a good credit score (above 700). 
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  If your education loan is not approved by banks, try government schemes for education loans like the Bihar student credit card scheme. 
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  You must ensure that you have proper updated documents. 

Starting your higher education journey could be overwhelming, especially when you have to arrange funds to finance your education abroad or in India. Various schemes, such as the Bihar Student Credit Card Scheme and Bihar State Cooperative Bank Ltd. education loan play an important role in making education accessible to all.

However, if you're looking for a seamless way to apply for education loans, Gyandhan is here to help you navigate the process with ease. We offer personalized assistance to help you find the best education loan options that align best with your financial needs. With our expert support, securing your education loan becomes a smoother and hassle-free experience. Check your eligibility criteria today and let Gyandhan be your partner in fulfilling your educational dreams into reality!

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