Insaaf Times Desk
Bihar Chief Minister Nitish Kumar has announced that education loans under the Student Credit Card (SCC) scheme for higher studies will now be interest-free. Earlier, general applicants were required to pay 4% interest, while women, differently-abled, and transgender students paid just 1%. Now, the interest rate has been reduced to 0% for all applicants.
Nitish Kumar took to his social media platform ‘X’ (formerly Twitter) to say that this decision will boost the morale of students in the state and help them perform better in higher education.
Relief in Repayment Period
The Chief Minister also stated that the repayment period for loans up to ₹2 lakh, which was earlier 60 monthly installments (5 years), has now been extended to 84 installments (7 years). For loans above ₹2 lakh, the repayment period has been increased from 84 installments to 120 monthly installments (10 years).
Key Features of the Scheme
Education loans up to a maximum of ₹4 lakh for higher studies.
Interest-free for all students.
Repayment period: 7 years for loans up to ₹2 lakh, 10 years for loans above ₹2 lakh.
Repayment starts one year after course completion or six months after securing a job, whichever is earlier.
0.25% additional discount for timely repayment.
Eligibility
Applicant must be a permanent resident of Bihar.
Must have passed Class 12 or equivalent.
Age should be up to 25 years (relaxation in special cases).
Only students enrolled in government-recognized institutions are eligible.
Application Process
1.Register at the District Registration and Counselling Centre (DRCC).
2.Obtain an appointment from DRCC.
3.Submit all required documents on the scheduled date.
4.After verification by authorities and banks, the Student Credit Card will be issued.
5.Complete formalities at the bank to receive the loan.
This announcement comes ahead of the Bihar Assembly elections. Earlier, the Nitish government had also implemented measures such as providing 125 units of free electricity, increasing social security pensions, and several other decisions in the education sector.
Education experts say that interest-free loans and extended repayment periods will reduce financial pressure on students and their families, enabling better academic performance and improving the overall standard of education in the state.
Bihar government’s initiative is expected to provide significant relief to students and free them from financial barriers in pursuing higher education.
