The Bihar government on Tuesday announced that students who clear the Class 12 board examinations will now be eligible for interest-free loans under the Student Credit Card Scheme to pursue higher education, reported PTI.
Earlier, loans of up to Rs 4 lakh were provided at an interest rate of 4 per cent for general male applicants and 1 per cent for female, differently-abled, and transgender applicants.
“Now, the loan will be interest-free for all applicants,” Chief Minister Nitish Kumar said in a post on X.
The Student Credit Card Scheme has been in effect since October 2, 2016.
The repayment structure has also been relaxed. Borrowers of up to Rs 2 lakh will now be able to repay in a maximum of 84 monthly instalments, instead of the earlier 60. For loans above Rs 2 lakh, the repayment period has been extended from 84 instalments to a maximum of 120.
Kumar said these measures are aimed at enabling students to pursue higher education without financial constraints. He added that the step would give students the confidence to chase higher education with more passion and commitment, shaping not just their future but also that of the state and the country.