Bihar student credit card scheme revised; no interest, longer repayment period

The Bihar government has introduced changes to the Bihar Student Credit Card Scheme. Under the latest decision, the state government has made education loans provided under the student credit card scheme completely interest-free for all applicants. This scheme has been in operation under the 7 Nischay Yojana since October 2, 2016.

The student credit card scheme was launched to support students from Bihar who wish to pursue higher education after completing Class 12. Under the scheme, eligible students could apply for financial assistance to continue their studies at colleges, universities, and recognised institutions within or outside the state.

Earlier, the scheme provided an education loan facility of up to Rs 4 lakh. The loan carried a concessional rate of interest. For applicants in the general category, the interest rate was fixed at 4 per cent. For female students, differently-abled students, and transgender applicants, the interest rate was further reduced to 1 per cent.

“I am extremely pleased to inform you that now the education loan provided under the Student Credit Card Scheme will be interest-free for all applicants,” CM of Bihar, Nitish Kumar, posted on X.

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Bihar Student Credit Card Scheme: Repayment period extended

In addition to the interest waiver, the repayment structure of the loan has also been revised. Previously, students taking loans of up to Rs 2 lakh were required to repay the amount within 60 monthly instalments, equivalent to five years.

This period has now been extended to 84 monthly instalments, or seven years. For loans exceeding Rs 2 lakh, the repayment period, which earlier stood at 84 monthly instalments (seven years), has been extended to a maximum of 120 monthly instalments, or ten years.

Chief Minister Nitish Kumar said the state government’s objective is to ensure that the maximum number of students in Bihar are able to pursue higher education. He added that the new provisions in the education loan scheme would help students continue their studies without financial obstacles.

“Our aim is to see that more and more students of Bihar are able to pursue higher education,” Nitish Kumar stated, while announcing the changes under the Student Credit Card Scheme.