'Interest-free for all': Nitish Kumar on student credit card loans; what it means for Bihar

The Bihar authorities has announced that acquisition loans provided nether the Student Credit Card (SCC) strategy volition present beryllium interest-free for each students. This decision, shared by Chief Minister Nitish Kumar via his authoritative X grip @NitishKumar, aims to trim the fiscal load connected aspiring students successful the state.In summation to waiving interest, the authorities has extended the repayment play for these loans. Previously capped astatine 5 years for loans up to Rs 2 lakh, the repayment play has present been lengthened to a maximum of 7 years. For loans exceeding Rs 2 lakh, the repayment play has been extended from 7 years to a maximum of 10 years.

Student Credit Card loans present interest-freeIn the post, CM Nitish Kumar expressed his pleasance astatine the development, stating, “I americium highly pleased to pass that the acquisition indebtedness magnitude fixed nether the Student Credit Card Scheme volition present beryllium wholly interest-free for each applicants.”

This marks a important alteration from earlier terms, wherever an involvement complaint of 4% applied to wide applicants and a reduced 1% complaint was disposable for female, differently-abled, and transgender applicants.The Student Credit Card strategy was launched nether the Saat Nischay Yojana successful Bihar connected October 2, 2016. It is disposable to students who person passed their 12th people and privation to prosecute higher education. Under this scheme, students tin avail acquisition loans of up to Rs 4 lakh.

Extended repayment play to easiness burdenThe repayment play has been revised to supply greater flexibility to students. Earlier, loans up to Rs 2 lakh had to beryllium repaid wrong 60 monthly instalments (five years). This play has present been extended to a maximum of 84 monthly instalments (seven years). Similarly, loans exceeding Rs 2 lakh, which antecedently had a repayment play capped astatine 84 monthly instalments (seven years), tin present beryllium repaid implicit a maximum of 120 monthly instalments (ten years).This hold aims to easiness repayment unit connected students, making higher acquisition much accessible.Significance of the moveThe announcement is seen arsenic a large alleviation for students successful Bihar, particularly successful an predetermination year. By waiving involvement and lengthening repayment terms, the authorities is offering important fiscal enactment to those pursuing higher education. The Student Credit Card scheme, nether the Bihar government’s Saat Nischay Yojana, continues to beryllium a cardinal inaugural to beforehand acquisition successful the state.CM Nitish Kumar highlighted the nonsubjective down the strategy by saying, “Our nonsubjective is to guarantee that much and much students successful the authorities tin entree higher education.” He further added that these enhanced benefits volition promote students to prosecute higher studies with greater enthusiasm and dedication.The Bihar government’s determination reflects a committedness to trim fiscal barriers and assistance students signifier their futures done education.