Bihar makes student loans interest-free under credit card scheme

The Bihar government has announced that all education loans under the Student Credit Card Scheme will now be provided without any interest.

The scheme is available to students who have passed the Class 12 board examinations and wish to pursue higher education.

Earlier, loans of up to ₹4 lakh were offered at 4% interest for general male students and 1% for female, differently-abled, and transgender students.

"Now, the loan will be interest-free for all applicants," Chief Minister Nitish Kumar said in a post on X.

The scheme has been in effect since Oct 2, 2016.

The government has also revised the loan repayment terms. Students borrowing up to ₹2 lakh will now get 84 months to repay the loan, instead of the earlier 60 months.

"For loans above ₹2 lakh, the repayment period has been extended from 84 monthly installments to a maximum of 120 monthly installments," Kumar added.

He said the objective is to ensure that no student is deprived of higher education due to lack of funds.

"The decisions will boost the morale of students, enabling them to pursue higher education with greater enthusiasm and dedication, thereby shaping not only their own future but also the future of the state and the country," the CM said.