Bihar CM Nitish Kumar makes Education loans interest-free under Student Credit Card Scheme

CM Nitish Kumar said that the Govt has decided to relax repayment terms, for loans up to ₹2 lakh, students will now get 7 years (84 EMIs) to repay instead of 5 years.

Bihar Chief Minister Nitish Kumar has announced that the students in the state will now be able to pursue higher education without worrying about paying interest on education loans. He announced that the loans given under the Bihar Student Credit Card (BSCC) Scheme will be completely interest-free for all applicants.

The scheme, which was rolled out on October 2, 2016 as part of the Saat Nischay Yojana, earlier offered loans of up to ₹4 lakh at 4% interest for general students and 1% for female, differently-abled and transgender students.

Making the announcement on X, Nitish Kumar wrote, “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.”

Repayment period extended

The Chief Minister also said the government has decided to relax repayment terms. For loans up to ₹2 lakh, students will now get 7 years (84 EMIs) to repay instead of 5 years. For loans above ₹2 lakh, the repayment period has been extended from 7 years to 10 years (120 EMIs).

In his tweet, Nitish Kumar underlined that the move was aimed at helping more students from Bihar enter higher education. “Our objective is to ensure that as many students as possible in the state can pursue higher education. These facilities will boost the morale of students, enabling them to study with greater enthusiasm and dedication, thereby shaping not only their own future but also the future of the state and the country,” he said.

The BSCC Scheme has been one of the flagship programmes of the Bihar government, with thousands of students using it to fund professional courses, engineering, medical, and management studies both within and outside the state.

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