Bihar Chief Minister Nitish Kumar has announced a big change in the Bihar Student Credit Card Scheme, making education loans completely free of interest for everyone who applies. He said this step will help students across the state get more opportunities for higher education.
The scheme started on October 2, 2016, under the 07 Nishchay Yojana, to give education loans up to Rs 4 lakh to students who passed Class 12 and wanted to continue their studies. Earlier, general applicants had to pay 4 percent interest, while women, differently-abled, and transgender students paid only 1 percent.
Now, loans will be interest free for all. Nitish Kumar wrote on X, “I am very happy to share that the education loans under the Student Credit Card Scheme will now be interest free for all applicants.” This move is expected to ease financial pressure on families and encourage students to focus on higher studies.
The state government has also changed the repayment period. Before, loans up to Rs 2 lakh were to be repaid in 60 monthly instalments (five years). Now, this has been extended to 84 monthly instalments (seven years). For loans above Rs 2 lakh, repayment has increased from 84 instalments (seven years) to 120 instalments (ten years). Officials said this change will make it easier for students to pay back after finishing their studies.
Nitish Kumar said these changes aim to make higher education accessible to as many students in the state as possible. He added that the scheme will inspire young people to study more and build a better future for themselves, the state, and the country.
The Student Credit Card Scheme has already helped thousands of students in Bihar. With the loans now interest free, the government expects even more students to benefit from this support.
