Bihar students can soon avail interest-free loans: Nitish

Bihar Chief Minister Nitish Kumar on Tuesday announced that interest-free loans will be provided to students under the Bihar Student Credit Card Scheme.

Earlier, education loans of up to ₹4 lakh were provided at an interest rate of 4% to male applicants, and 1% to female, differently-abled, and transgender applicants who have passed the Class 12 examinations. The Bihar Student Credit Card Scheme has been in effect since October 2, 2016.

Mr. Kumar shared the information on social media platform ‘X’ saying, “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. Additionally, the provision for repaying an education loan of up to ₹2 lakh in 60 monthly instalments (5 years) has now been extended to a maximum of 84 monthly instalments (7 years).”

He further said, “For loan amounts above ₹2 lakh, the repayment period has been extended from 84 monthly instalments (7 years) to a maximum of 120 monthly instalments (10 years). Our objective is to ensure that as many students in the State can pursue higher education.”

Mr. Kumar added that the move will boost the morale of students, enabling them to pursue higher education with greater enthusiasm and dedication, thereby shaping not only their future but also the future of the State and the country.

While addressing the NDA workers’ conference in Sheikhpura Assembly seat, Janata Dal (United) State president Umesh Singh Kushwaha described the announcement as a historic step.

He said this initiative will not only provide higher education opportunities to students from economically weaker families, but also empower the education sector of Bihar and take the overall development of the State to new heights.