In the run up to the Bihar Assembly elections, Chief Minister Nitish Kumar has announced a major relief for students seeking higher education. From now on, loans taken under the Bihar Student Credit Card Scheme (BSCCS) will be completely interest-free for all applicants. 

Students can avail up to Rs 4 lakh education loan under the scheme.

Earlier, general applicants paid 4 per cent interest, and women, divyang, and transgender applicants paid 1 per cent interest under this scheme.

Now, under the new system, there is a zero interest rate for all categories of students.

As per the announcement by the Chief Minister, for loans up to Rs 2 lakh the repayment period has been extended from 5 years (60 EMIs) to 7 years (84 EMIs).

For loans above Rs 2 lakh, the repayment period is extended from 7 years (84 EMIs) to 10 years (120 EMIs).

CM Nitish Kumar shared the update on social media, writing: “Under the Bihar Student Credit Card Scheme, students who pass Class 12 and want to pursue higher education are provided loans of up to Rs 4 lakh. I am very happy to inform you that this amount will now be interest-free for all applicants. This decision will ensure that no student in Bihar is deprived of higher education due to financial constraints.”

“Our aim is that the maximum number of students in the state should get higher education. These facilities given in the education loan provided for higher education will boost the morale of the students, and they will be able to pursue education with more enthusiasm and dedication. This will help them shape not only their own future but also the future of the state and the country,” he said.

The Student Credit Card Scheme, launched on 2 October 2016 under Nitish Kumar’s flagship ‘Saat Nishchay Yojana’, was designed to support economically weaker students.

With this latest reform, the government hopes to significantly raise Bihar’s higher education enrolment rate and empower its youth.