Student Credit Card: Nitish government's big announcement, education loan will be available without interest..time to return also increased

Bihar Government Announces Major Update: Interest-Free Student Credit Card Loans, Extended Repayment Tenure

Bihar Chief Minister Nitish Kumar has made a significant announcement for students ahead of the upcoming state assembly elections. Under the Student Credit Card Scheme, students can now avail education loans up to ₹4 lakh without paying any interest.

No Interest on Student Loans

Earlier, education loans under this scheme carried an interest of 4% for general category applicants, while women, differently-abled students, and transgender applicants were charged 1%. With the new decision, all categories of students will now benefit from completely interest-free loans, reducing the financial burden of higher education.

बिहार में 07 निश्चय योजना के अंतर्गत 12वीं कक्षा उत्तीर्ण छात्र जो उच्च शिक्षा प्राप्त करना चाहते हैं उनके लिए 02 अक्टूबर 2016 से बिहार स्टूडेंट क्रेडिट कार्ड योजना लागू है। बिहार स्टूडेंट क्रेडिट कार्ड योजना के अंतर्गत उच्च शिक्षा प्राप्त करने के लिए अधिकतम 04 लाख रुपए का शिक्षा…

— Nitish Kumar (@NitishKumar) September 16, 2025

Extended Loan Repayment Period

The government has also extended the repayment tenure to make the process more student-friendly.

• For loans up to ₹2 lakh, the repayment period has been increased from 60 months (5 years) to 84 months (7 years).

• For loans above ₹2 lakh, the repayment period has been extended from 84 months (7 years) to 120 months (10 years).

Chief Minister Nitish Kumar stated that the initiative aims to encourage more students to pursue higher education without worrying about financial stress. “Our goal is to empower the youth of Bihar by ensuring education is accessible and affordable for everyone,” he tweeted.

About the Student Credit Card Scheme

The Bihar Student Credit Card Scheme was launched on October 2, 2016, by the state’s Education Department. The scheme is open to all students, irrespective of caste or category, provided their annual family income is less than ₹6 lakh. Through the card, students can secure loans of up to ₹4 lakh for higher education, covering courses in recognized institutions across India.

Until now, beneficiaries had to pay between 1% and 4% interest on these loans. With the latest update, the loan will be entirely interest-free, making it one of the most student-friendly education financing schemes in the country.

Why This Matters

The decision comes at a crucial time when the cost of higher education is rising rapidly. By removing the interest burden and offering flexible repayment schedules, the Bihar government hopes to:

• Increase the number of students pursuing higher studies.

• Reduce dropout rates caused by financial constraints.

• Build a stronger workforce for the state’s future development.

Key Highlights of the Update

• Loan Limit: Up to ₹4 lakh.

• Interest Rate: 0% for all applicants.

• Repayment Tenure: 7 years for loans up to ₹2 lakh; 10 years for loans above ₹2 lakh.

• Eligibility: Annual family income less than ₹6 lakh.

With this announcement, the Nitish Kumar government has taken a bold step to support students, ensuring that financial hurdles do not prevent them from accessing quality education.