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The boy, a student of BRG Plus-II College in Bhojpur, also runs a paan shop in the area, they said.
He borrowed Rs 10,000 from the retired lecturer of Jamankira College, which, he was supposed to pay back with interest, they added.
As he was unable to repay the loan, the retired lecturer on Monday went to BRG College, where the boy studies, and slapped him in a classroom full of students, police said.
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The boy is at present undergoing treatment at the Kuchinda sub-divisional hospital and his condition is stated to be critical, police said.
The matter is being probed and a case will be registered, said Sobhakara Seth, the inspector-in-charge of Kuchinda police station.