Bihar Chief Minister Nitish Kumar on Tuesday announced a major relaxation in the state’s Student Credit Card Scheme, declaring that education loans will now be completely “interest-free for all applicants”. The move, which comes just months before the Bihar assembly elections, is expected to benefit thousands of students seeking higher education.
In a post on X, Kumar called the reform a step to strengthen opportunities for the youth. “I am extremely delighted to inform you that now the education loan provided under the Student Credit Card Scheme will be interest-free for all applicants,” he wrote, adding that the decision would “boost students’ morale” and encourage more young people to pursue higher studies.
Extended Repayment Periods For Borrowers
Along with scrapping interest, the state government has also eased repayment rules. Borrowers of loans up to Rs 2 lakh will now have seven years (84 monthly installments) instead of the earlier five years to repay. For loans above Rs 2 lakh, the repayment period has been extended to ten years (120 installments) compared to the previous seven years.
The changes are aimed at reducing the financial burden on students and their families, providing them with more time and flexibility to repay without stress.
Student Credit Card Scheme: A State Initiative
Launched in October 2016 under the “Saat Nischay Yojana,” the Bihar Student Credit Card Scheme has been helping students who pass Class 12 to pursue higher education with financial support. Until now, the scheme offered loans up to Rs 4 lakh at a subsidised interest rate of 4 percent for general applicants and just 1 percent for women, differently-abled, and transgender students.
With Tuesday’s announcement, all categories of applicants will now have access to completely interest-free loans.
Reiterating the government’s vision, Kumar said, “Our objective is to ensure that as many students as possible in the state can pursue higher education. These facilities provided in the education loan for higher education will boost the morale of students, enabling them to pursue higher education with greater enthusiasm and dedication, thereby shaping not only their own future but also the future of the state and the country.”
The move is being seen as a significant pre-election push by the Bihar government, with education and youth empowerment likely to emerge as major issues in the upcoming polls.
