Prime Highlight
- The Bihar government has made education loans under the Student Credit Card Scheme completely interest-freefor all students.
- CM Nitish Kumar said the move will ensure equal opportunities for higher educationand boost student morale, especially for women and underrepresented groups.
Key Facts
- Loans of up to ₹4 lakhare available, with repayment extended to 84 months (for loans up to ₹2 lakh) and 120 months (for loans above ₹2 lakh).
- The scheme, launched in 2016, aims to improve literacy and education levelsand empower youth in Bihar.
Background
The Bihar government has announced interest-free education loans for students passing class 12 examinations, under its Student Credit Card Scheme. Chief Minister Nitish Kumar said the decision was aimed at ensuring that every student, regardless of background, can pursue higher education without financial burden.
Earlier, the scheme provided loans of up to ₹4 lakh with a 4% interest rate for general male applicants and 1% for women, differently-abled, and transgender students. With the new change, loans will now be interest-free for all applicants.
Launched on October 2, 2016, the Student Credit Card Scheme was designed to make higher education more accessible. The new decision is projected to make a difference to women and the underrepresented groups in particular, as it will provide more chances to them to further their education.
The repayment system has also been made easier. For loans up to ₹2 lakh, the repayment period has been extended from 60 to 84 months. For loans above ₹2 lakh, the repayment time has been increased from 84 to 120 months. This flexibility is expected to reduce pressure on students while they focus on building their careers.
CM Kumar said, “Our objective is to make higher education affordable for every student in Bihar. These changes will boost morale and encourage more young people, especially women, to pursue their dreams and contribute to the state and the country.”
The move comes as Bihar continues efforts to improve literacy and education levels. With the focus on empowering students, particularly young women, the scheme is regarded as a significant move towards building a competent and self-assured future generation.
