Bihar: Class 12 passouts eligible for interest-free education loans, CM Nitish Kumar announces

The Bihar government has announced that students who passed the class 12 board examinations will be eligible for interest-free loans under the Student Credit Card Scheme to enable them to pursue higher education.

Previously, school loans of up to Rs 4 lakh were offered at a 4 per cent interest rate to general male applicants and 1 per cent to female, PwD (Persons with Disabilities), and transgender candidates, PTI reported.

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

The Bihar Student Credit Card Scheme was launched on October 2, 2016, and has been in effect ever since.

Kumar said the provision for repaying a loan of up to Rs 2 lakh in 60 monthly installments has now been increased to a maximum of 84 monthly payments.

”For loans above Rs 2 lakh, the repayment period has been extended from 84 monthly instalments to a maximum of 120 monthly instalments,” he said in the post.

Kumar stated that the goal of his government is to ensure that students can pursue higher education.

He stated that the decisions will increase student morale, allowing them to pursue higher education with greater zeal and determination, moulding not only their own destiny but also the futures of the state and country.