Bihar elections: Nitish Kumar announces interest-free education loans under student credit card scheme; all you need to know

NEW DELHI: Bihar chief minister Nitish Kumar on Tuesday announced that education loans provided under the state’s Student Credit Card Scheme will now be completely “interest-free for all applicants,” ahead of state assembly elections.Sharing the post on X, the Bihar CM said that the decision would “boost students’ morale” and encourage more young people to pursue higher education.

“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,” Nitish wrote on X.The CM also extended the repayment period for student loans.Kumar said borrowers of loans up to Rs 2 lakh will now get seven years (84 monthly instalments) instead of five years to repay, while those with loans above Rs 2 lakh will get up to ten years (120 monthly instalments) instead of seven.Launched on October 2, 2016, under the 07 Nischay programme, the scheme was designed to support students who had passed Class 12 and wished to pursue higher education. Until now, “an education loan of up to 4 lakh rupees is provided for higher education at an interest rate of 4% for general applicants, and at a mere 1% interest rate for female, differently-abled, and transgender applicant.””Our aim is to ensure that as many students as possible in the state can access higher education. These facilities provided in the education loan for higher education will boost students’ morale, enabling them to pursue higher education with greater enthusiasm and dedication,” Bihar CM said.He further described the decision as a step toward expanding educational opportunities and empowering Bihar’s youth, “shaping not only their own future but also the future of the state and the country.”