The Bengal cabinet on Thursday approved a proposal to issue credit cards to students to enable them to apply for education loans up to Rs 10 lakh.

“Our cabinet today okayed a proposal of issuing student credit cards. Students can avail themselves of education loan up to Rs 10 lakh and they have to repay the amount within 15 years after they get jobs,” chief minister Mamata Banerjee said on Thursday at Nabanna after the cabinet meeting.

According to the proposal, the facility would be extended to students — who have spent at least 10 years in Bengal — studying between Class X and postdoctoral research. The maximum age limit for securing the education loan is 40. The Bengal government would be the guarantor for each of the students who would apply for the education loan from banks through the credit cards. The scheme would be launched on June 30 across the state.

The chief minister said about 12 lakh Class X students, 9.5 lakh Class XII students and those pursuing bachelor degree and postgraduate degree, research scholars and postdoctoral students could secure the benefits.

Trinamul Congress sources said the student loan had been promised by Mamata ahead of the Assembly polls. Sources said the credit cards would help students who wished to study abroad or at institutions of repute that were costly.