Can You Get a BSCC Loan and a Scholarship Together?

Can You Get a BSCC Loan and a Scholarship Together: Yes, depending on the eligibility criteria for each programme, you can receive both a BSCC Loan and a scholarship together. Scholarship covers tuition fees, maintenance, books, etc. resulting in the reduction of the BSCC loan amount based on the scholarship amount received. Tuition & essential academic expenses are covered by the Bihar Scholarship and hence the Bihar Student Credit Card (BSCC) loan must only be availed for uncovered expenses like living, extra academic costs, travel costs, etc. If you opt for both BSCC loan & scholarship and the scholarship money is sufficient, you can start repaying your loan early. Read the article below to gain deeper insights into the eligibility criteria, benefits offered, and how to manage both BSCC and scholarship below.

Also Read: How to Apply for Student Credit Card in Bihar?

Can You Get a BSCC Loan and a Scholarship Together?

Yes, you can receive both a BSCC Loan and a Scholarship together, if it is in conformity with the eligibility criteria of each programme. The Bihar Scholarship is a financial aid or grant that covers tuition fees, maintenance, books, etc. provided by the state government of Bihar. Scholarships are based on merit, need, category, or gender and candidates are not required to repay them. The scholarship amount in Bihar ranges from INR 10,000 to INR 50,000 per year. On the other hand, the BSCC loan is a low-interest educational loan provided by the Bihar government that provides financial assistance to students from SC/ST/OBC/EWS categories to fund their higher education. The maximum loan amount rises up to INR 4 lakhs per student.

You must opt for the Bihar Scholarship if you qualify for a scholarship that covers all expenses including tuition, hostel, books, etc. If your family’s income is low and you do not want a repayment burden or interest payments in the future, you must apply for scholarships. A BSCC loan should be considered when you do not qualify for a full scholarship and need additional financial assistance other than the tuition fees, that is, for hostel, books, laptop, or travel. Also, you can opt for a BSCC loan when your job prospects are good and you are confident you can repay the loan after the completion of the course.

Also Check: How to Submit BSCC Application?

BSCC Loan vs Bihar Scholarship Comparison

You should always apply for Bihar Scholarship first before the BSCC loan, since it requires no repayment. Apply for a BSCC loan only if the scholarship does not cover all costs like hostel, study materials, project fees, or travel expenses. Find the detailed comparison between BSCC loan and scholarship below:

• BSCC Loan vs Bihar Scholarship: While the BSCC loan is provided to students from backward classes to fund higher education, the Bihar scholarship is a financial aid awarded based on merit, category, or financial need.
• Coverage: Bihar scholarships cover tuition fees, books, living expenses, or a stipend, while the BSCC loan covers tuition fees, hostel, books, study abroad expenses, etc.
• Repayment: The BSCC loan must be repaid after completing the course but the Bihar scholarship offers free financial assistance. There exists a Moratorium period lasting one year after the course completion during which candidates are not required to repay the loan. Notably, the BSCC loan has low interest rates, and scholarships have no interest on them (since they are not loans). The Bihar scholarship must not be repaid by the students.
• Factors Considered: BSCC loan depends on category (SC/ ST/ OBC), family income limit, and admission of candidates in a recognized course and scholarship depends on merit, financial need, and category of the candidate.
• Funding Amount: Under the BSCC loan, you are eligible for a maximum loan amount of Rs.4 lakh per student, while the funding amount under scholarship varies for different scholarships. It ranges from INR 10,000 to INR 50,000 per year.
• Flexibility: For the BSCC loan, interest subsidies or waiving off part of the loan are also available options for timely repayment. However, Bihar scholarships are fully funded by government, private organizations, or NGOs.

Eligibility Criteria to Get a BSCC Loan and a Scholarship in Bihar

While students belonging to backward classes are typically eligible for BSCC loan for pursuing higher education, scholarships are primarily merit-based. However, different Government Scholarships, both State & Central, have different eligibility criteria. Find the mandatory scholarship eligibility while using BSCC loan below:

BSCC Loan Eligibility Criteria

• It is mandatory for you to be a permanent resident of the state of Bihar.
• You must belong to a Backward Class among SC/ST/OBC etc aiming to pursue higher education in India or abroad.
• Your family income should not exceed the limit prescribed by the state government of Bihar.
• You must have secured admission in any of the recognized courses among UG, PG, professional, or technical courses in an institution recognized by the state or central government related regulatory agency.
• You must not be less than 25 years of age.
• You are not required to submit any Collateral/security (depends on loan amount)
• The documents required for availing the BSCC loan include Caste Certificate, Income Certificate, Admission Proof for college and university, Xth and XIIth mark sheet and certificate, Previous year’s income certificate, Previous two year’s income tax return, Bank Details, and Aadhaar/ PAN Card.

Bihar Scholarship Eligibility Criteria

• For Post-Matric Scholarship for SC/ST/OBC, you must belong to the economically weaker sections (EWS)/ SC/ ST/ OBC categories enrolled in a recognized institution. Your family income should not exceed INR 1-8 lakh per year.
• For Merit-Based Government Scholarships, high academic performance (usually above 60-75% marks) is required. Additionally, you must have enrolled in a recognized professional or degree course. There may be an income limit for certain scholarships.
• For a Bachelor's degree, you must have completed Class 12 from a recognized board for securing admission to a recognized UG program (Engineering, Medicine, Arts, Science, Commerce, etc.).
• For PG scholarships, you must have completed a Bachelor’s degree in a relevant field with a minimum aggregate of 60% - 75% in UG.
• Under the Chief Minister Medhavi Yojana, INR 10,000 is provided for students who score 80%+ in Class 12.
• Under the Mukhyamantri Kanya Utthan Yojana , INR 25,000 is provided to girls who complete graduation and INR 50,000 to girls completing postgraduation.
• The AICTE GATE PG Scholarship offers a stipend of INR 12,400/month to M.Tech/M.Pharm students.

Benefits of BSCC Loan and Scholarship

While the BSCC loan caters the academic needs of students from backward classes to afford higher education, scholarships are meant both for academically strong students or students from economically weaker backgrounds. Given below are the benefits of both BSCC Loan and Scholarships:

Benefits of the BSCC Loan

Under the BSCC scheme, backward classes from Bihar can afford higher education due to the following benefits:

• A maximum loan amount of Rs.4 lakh per student polytechnic, technical, general, and professional courses at recognized institutions in Bihar.
• Financial assistance to cover your tuition fee of the institution, hostel fees as well as the accommodation fees for rent in case of non availability of hostel, and expenses to buy books and laptops.
• Moratorium period is offered, i.e. you can start repaying the BSCC loan once the course has been completed and you have secured a job.
• The interest rate is 1% per annum for Divyang, transgender, and girl students.

Benefits of a Scholarship

• Unlike loans, students are not required to repay the scholarships for students from economically weaker backgrounds.
• It covers the tuition fees, expenses to buy books, hostel fees, living expenses, and travel costs.
• Merit-based scholarships are available for academically strong students helping Class 12 pass outs with very high aggregate marks to pursue UG studies without worrying about fees.
• Those from economically disadvantaged backgrounds can avail themselves of need-based scholarships.
• PG scholarships help students from low-income families pursue MBA, M.Tech, M.Sc, MA, and other PG programs. Scholarships for M.Tech, M.Sc, MA, and PhD promote research and innovation in Bihar.
• You can be free from the burden of taking high-interest loans for pursuing higher education. However, if the full expenses are not covered by the scholarship, a BSCC loan can be availed to fill the gap.
• PG students will be able to prepare for competitive exams like UPSC, SSC, and BPSC, etc. with financial security.
• If you are a woman and belong to the SC/ST/OBC/EWS categories, you are eligible for extra funds under special financial support provided by Bihar scholarships.
• To support research and job preparation among students, scholarships like UGC JRF and AICTE GATE PG Scholarship provide monthly stipends.
• The Post-Matric Scholarship for PG Students (BC/ EBC/ SC/ ST) covers tuition fees & living expenses of students.
• Girls aiming for postgraduation can avail themselves of a scholarship worth INR 50,000 under the Mukhyamantri Kanya Utthan Yojana.
• The AICTE GATE PG Scholarship offers a stipend worth INR 12,400 per month for M.Tech/ M.Pharm students.

Benefits of Combining BSCC Loan with Scholarships

• Tuition fees, books, and hostel expenses are covered under Bihar scholarships while the additional expenses for study materials, laptop, books, project fees, travel, expenses for competitive exam preparation after UG/PG, or remaining tuition fees are covered by the BSCC loan.
• In order to reduce future repayment, you can opt for scholarships to cover major expenses and can take a smaller BSCC loan. Also, since BSCC loans have low interest rates, repayment becomes much easier when you opt for a reduced amount.
• You can also start repaying the loan early with the excess funds received from scholarships.
• Backward class candidates, i.e. candidates belonging to SC/ST/OBC/EWS categories become eligible for both Bihar scholarships and BSCC loans ensuring higher financial assistance that makes higher education affordable.

How to Manage BSCC Loan with a Scholarship?

You must implement smart strategies to manage BSCC Loan with a Scholarship to minimize debt and maximize benefits. If you want to reduce your financial burden, apply for a scholarship first and opt for BSCC loan only if necessary for additional expenses. Find how to combine a BSCC Loan with a Scholarship and make effective use of both below.

• Since scholarships offer free financial assistance, you must make use of the scholarship amount first before taking a loan to cover your tuition fees, hostel charges, books, and exam fees.
• You might not need to take the full BSCC loan amount if all the expenses are being covered by the Bihar scholarship.
• To reduce the stress of loan repayment later, you must borrow only how much is required.
• The BSCC loan will suffice for additional financial needs if all the expenses are not being covered by the Bihar scholarship, such as hostel rent, travel expenses, or extra study materials.
• In order to track scholarship and loan usage, you are required to create a budget and refrain from spending the money obtained through the BSCC loan money on non-educational expenses. This will prevent unnecessary debt. The extra scholarship funds must be saved for future academic expenses such as exam fees, projects, or further studies.
• If the scholarship amount is sufficient, you can start repaying the BSCC loan early even though it has a moratorium period which is a grace period during which students are not required to make loan repayments. It extends one year after course completion or five years from loan disbursement, whichever comes first.

In conclusion, taking a BSCC Loan and a Scholarship together offers a wide range of benefits including full scholarship (tuition + hostel), and financial assistance for books, additional academic materials, travel expenses, etc. If your aim is to remain debt-free after graduation, you must only take scholarships. Notably, the BSCC loan is a mandate when you are pursuing professional courses (B.Tech, MBBS, MBA) and need extra financial aid.

To Learn More About Bihar Student Credit Card Scheme:

For further guidance, feel free to dial our toll-free number 1800-572-9877 or fill out CollegeDekho’s Common Application Form . In case of any queries or concerns, you can write to us in the QnA zone .

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