Bihar polls: CM Nitish announces interest-free education loans for students

Bihar Assembly elections 2025: Kumar also extended the repayment period for loans up to ₹2 lakh to 7 years from 5 years, whereas loans above ₹2 lakh need to be repaid in 10 years

Bihar Chief Minister Nitish Kumar on Tuesday announced that no interest will be charged on education loans provided under the Student Credit Card Scheme. The move that comes shortly ahead of the elections scheduled for the state in October-November is expected to benefit scores of students.

 

In an X post in Hindi, Kumar said, "I am very pleased to announce that now, under the Student Credit Card Scheme, the education loans provided to all applicants will be completely interest-free."

Repayment provision extended

Kumar also extended the repayment period for loans up to ₹2 lakh to 7 years from 5 years, whereas loans above ₹2 lakh need to be repaid in 10 years. 

 

In the post, Kumar said, "Loans which were earlier supposed to be repaid in 60 monthly instalments (5 years), have now been extended to a maximum of 84 monthly instalments (7 years). Similarly, for loans above ₹2 lakh, the repayment period has been extended from 84 monthly instalments (7 years) to a maximum of 120 monthly instalments (10 years)."

Bihar Student Credit Card Scheme

Under the Seven Nischay Scheme in Bihar, the Bihar Student Credit Card Scheme has been in effect since 2016, for students who have passed Class 12 and wish to pursue higher education. Under this scheme, students can avail of education loans of up to ₹4 lakh for higher studies. 

 

Earlier, the loan was provided at an interest rate of 4 per cent for general applicants, and only 1 per cent for women, differently-abled, and transgender applicants. However, this will now be completely free of interest.

Move to boost students’ morale

Kumar further said that the government aims to ensure that the maximum number of students in the state are able to pursue higher education. "These enhanced benefits in education loans for higher studies will boost students’ morale and inspire them to pursue education with greater enthusiasm and dedication, thereby shaping not only their own future but also the future of the state and the country," Kumar said. 

Schemes launched with elections

In another move aimed at creating more opportunities for the youth, Kumar recently announced that the fee for all preliminary competitive examinations in the state has been standardised at ₹100, and no fee will be charged for the mains.