Bihar Student Credit Card Scheme: How to Get an Interest-Free Loan of ₹4 Lakh for Higher Studies

For thousands of students in Bihar, financial constraints have often been the biggest hurdle in pursuing higher education. To bridge this gap, the Bihar government has introduced the Student Credit Card Scheme (BSCC), which allows eligible students to secure loans of up to ₹4 lakh without paying any interest. Launched in 2016 by Chief Minister Nitish Kumar under the “Saat Nishchay Yojana,” the scheme continues to benefit young learners who dream of pursuing advanced degrees but lack the resources to fund their education.

What the Scheme Offers

Under the BSCC, students who have completed Class 12 from a Bihar-based institution can apply for a loan of up to ₹4 lakh to cover tuition fees, books, laptops, hostel charges, and other academic expenses.

The biggest relief is that the loan is now completely interest-free. Earlier, the scheme carried an interest rate of 4% annually (1% for women, differently-abled, and transgender students). Now, the Bihar government has waived all interest charges, ensuring that students only repay the principal amount.

The repayment period has also been extended. Borrowers now have up to 10 years to clear the loan, compared to the earlier 5–7 years. Repayments begin only after course completion, with a moratorium period allowing flexibility in case students take time to secure employment.

Eligibility Criteria

To apply for the Bihar Student Credit Card Scheme, students must meet the following conditions:

• Must be a resident of Bihar

• Must have completed Class 12 from a recognized Bihar-based school or institution

• Age limit: up to 25 years (with relaxations – 3 years for OBC, 5 years for SC/ST and differently-abled candidates)

• Must have secured admission into a recognized higher education program such as MBA, MCA, B.Tech, MBBS, or other approved courses

• Family’s annual income should be below ₹6 lakh

Additionally, students are required to complete their course successfully to remain eligible.

Required Documents

Applicants must provide the following documents when applying:

• Aadhaar card and PAN card

• Class 10 and Class 12 mark sheets and certificates

• Admission proof and approved course structure

• Income certificate and past two years’ income tax returns

• Six months’ bank statement

• Domicile certificate of Bihar

• Passport-size photographs

• Bank passbook with IFSC code

Step-by-Step Application Process

The application process for the Bihar Student Credit Card is straightforward but involves multiple stages:

1. Online Registration

   • Visit 7nishchay-yuvaupmission.bihar.gov.in

   • Click on New Applicant Registration

   • Fill in personal details such as name, Aadhaar number, phone, and email ID

   • Verify using OTP and set login credentials

2. Application Form Submission

   • Log in using the generated username and password

   • Select BSCC option and fill in academic and personal details

   • Upload required documents and submit the form

3. Verification & Approval

   • Applicants will receive an appointment date at the District Registration and Counselling Center (DRCC)

   • Submit self-attested documents for verification

   • Once approved, the loan is sanctioned, and the Student Credit Card is issued

The process usually takes 30 to 45 days after submission.

Repayment Terms

• Loan repayment begins one year after course completion or six months after securing a job, whichever comes earlier.

• Borrowers get up to 10 years to repay.

• Prepayment is allowed, and those who repay early receive a 0.25% interest rebate (though currently, the loan is interest-free).

• If a student fails to secure employment immediately, they can submit an affidavit every six months, ensuring that repayment obligations are deferred until they have an income source.

Loan Waiver Conditions

The loan is not automatically waived under normal circumstances. However, in unfortunate cases such as the death of the applicant or permanent physical disability, the loan may be written off.

Approved Courses and Institutions

The government has approved over 40 professional and higher education courses under this scheme. Students can check the full course list and the recognized institutions on the official website.

Why the Scheme Matters

By eliminating interest and extending repayment flexibility, the Bihar Student Credit Card Scheme ensures that financial hardship does not stand in the way of academic aspirations. The initiative has already empowered thousands of students from low- and middle-income families to pursue degrees in engineering, medicine, management, and other fields.

For students in Bihar, this scheme is more than just a financial aid program—it is a pathway to education, employability, and empowerment.