Bihar govt makes Student Credit Card loans interest-free for all students, says CM Nitish Kumar

The Bihar government has announced that education loans provided under the Student Credit Card (SCC) scheme will now be interest-free for all students. This decision, shared by Chief Minister Nitish Kumar via his official X handle @NitishKumar, aims to reduce the financial burden on aspiring students in the state.In addition to waiving interest, the government has extended the repayment period for these loans. Previously capped at five years for loans up to Rs 2 lakh, the repayment period has now been lengthened to a maximum of seven years. For loans exceeding Rs 2 lakh, the repayment period has been extended from seven years to a maximum of ten years.

Student Credit Card loans now interest-freeIn a social media post, CM Nitish Kumar expressed his pleasure at the development, stating, “I am extremely pleased to inform that the education loan amount given under the Student Credit Card Scheme will now be completely interest-free for all applicants.”

This marks a significant change from earlier terms, where an interest rate of 4% applied to general applicants and a reduced 1% rate was available for female, differently-abled, and transgender applicants.The Student Credit Card scheme was launched under the Saat Nischay Yojana in Bihar on October 2, 2016. It is available to students who have passed their 12th grade and wish to pursue higher education. Under this scheme, students can avail education loans of up to Rs 4 lakh.

Extended repayment period to ease burdenThe repayment period has been revised to provide greater flexibility to students. Earlier, loans up to Rs 2 lakh had to be repaid within 60 monthly instalments (five years). This period has now been extended to a maximum of 84 monthly instalments (seven years). Similarly, loans exceeding Rs 2 lakh, which previously had a repayment period capped at 84 monthly instalments (seven years), can now be repaid over a maximum of 120 monthly instalments (ten years).This extension aims to ease repayment pressure on students, making higher education more accessible.Significance of the moveThe announcement is seen as a major relief for students in Bihar, especially in an election year. By waiving interest and lengthening repayment terms, the government is offering substantial financial support to those pursuing higher education. The Student Credit Card scheme, under the Bihar government’s Saat Nischay Yojana, continues to be a key initiative to promote education in the state.CM Nitish Kumar highlighted the objective behind the scheme by saying, “Our objective is to ensure that more and more students in the state can access higher education.” He further added that these enhanced benefits will encourage students to pursue higher studies with greater enthusiasm and dedication.The Bihar government’s decision reflects a commitment to reduce financial barriers and help students shape their futures through education.