Bihar CM waives interest on education loans, extends repayment plan

With an eye on the large number of young voters in the state, Bihar Chief Minister Nitish Kumar on Tuesday took another populist decision of waiving interest on all education loans provided under the Student Credit Card Scheme.

In a message posted on ‘X’, he stated, “I am extremely pleased to share that now, all education loans provided under the Student Credit Card Scheme will be interest-free for all applicants.”

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Additionally, he has also extended the loan’s term, giving more time to pay off the debt.

Earlier, the repayment provision for loans up to Rs 2 lakh was in 60 monthly installments (5 years). This has now been increased to a maximum of 84 monthly installments (7 years). For loans above Rs 2 lakh, the repayment period has been increased from 84 monthly installments (7 years) to a maximum of 120 monthly installments (10 years).

Under the ‘Saat Nischay Yojana’ in Bihar, the Bihar Student Credit Card Scheme has been in effect since 2 October 2016, for students who have passed Class 12 and wish to pursue higher education.

Under this scheme, a maximum education loan of Rs 4 lakh is provided at an interest rate of 4% for general applicants, and at a concessional rate of 1% for women, differently-abled, and transgender applicants.

He added, “Our aim is to ensure that as many students as possible in the state can pursue higher education. These enhanced benefits under the education loan scheme will boost students’ morale, enabling them to pursue higher education with greater enthusiasm and dedication, thereby shaping not only their own futures but also contributing to the future of the state and the country.”

Ahead of the Assembly elections due in October-November this year, Nitish Kumar has continued the spree of announcing sops to various sections.

The government has earmarked an amount of Rs 1,000 crore for the Bihar Student Credit Card to help economically weaker students pursue higher education. The government has also doubled the pre-matriculation scholarship to students. The hostel grant for Scheduled Castes and Scheduled Tribes has also been doubled.

Nitish Kumar has also promised to provide government jobs and employment opportunities to one crore youth of the state within the next five years.