Ahead of the Bihar Assembly elections, Chief Minister Nitish Kumar has made a big announcement for students.
Under the Bihar Student Credit Card Scheme, education loans will now be completely interest-free.
This scheme allows students to get loans of up to ₹4 lakh for higher education. Earlier, students had to pay interest:
4% for the general category
1% for women, differently-abled, and transgender students
Now, loans will be interest-free for everyone.
Loan Repayment Period Extended
The government has also increased the repayment time for education loans:
For loans up to ₹2 lakh, the repayment period has been extended from 60 months (5 years) to 84 months (7 years).
For loans above ₹2 lakh, the repayment period has been extended from 84 months (7 years) to 120 months (10 years).
Chief Minister Nitish Kumar said this step will help more students in Bihar pursue higher education and boost their morale.
About the Student Credit Card Scheme
The Bihar Student Credit Card Scheme was launched on October 2, 2016, by the state’s Education Department.
Key features of the scheme:
Any student can apply, regardless of caste or social background
Provides up to ₹4 lakh for higher education
Family’s annual income must be less than ₹6 lakh
Earlier interest rates (1% to 4%) have now been completely removed
This move is expected to make higher education more accessible and affordable for thousands of students across the state.
