Bihar Chief Minister Nitish Kumar on Tuesday announced that the education loan given under Student Credit Card Scheme will be interest free for all applicants. This announcement, which comes just ahead of the Bihar assembly election, is likely to provide a major relief to students pursuing higher education.
"I am very happy to inform you that now the amount of education loan given under the Student Credit Card Scheme will be interest free for all the applicants," he said in a post on X.
Education loans of up to Rs 4 lakh were provided at an interest rate of 4 per cent to general male applicants and 1 per cent to female, differently-abled, and transgender applicants.
In addition, the JD(U) chief said that the Bihar government has decided to extend the loan repayment period. Previously, loans of up to Rs 2 lakh were to be repaid in 60 monthly installments (5 years). The same has now been extended to a maximum of 84 monthly installments (7 years).
For loans exceeding Rs 2 lakh, the repayment window has been extended to a maximum of 120 monthly installments (10 years), instead of the existing 84 monthly installments (7 years).
The Bihar Student Credit Card Scheme has been in effect since October 2, 2016.
The objective of the Bihar government, Nitish Kumar said, is to ensure that students can pursue higher education. "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 Bihar CM added.
Bihar is expected to go to polls in November in two or three phases. The current Assembly's term will end on November 22, 2025, and the poll panel is required to complete the election process before the same.
While the NDA, comprising the BJP, JD(U), and LJP, aims to continue its tenure in Bihar, the INDIA bloc - comprising the Rashtriya Janata Dal (RJD), Congress, and Left parties - seeks to oust Nitish Kumar.
The 2020 elections were conducted in three phases starting October 28 and the results were declared on November 10.
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