Launched by the Bihar State Government on 2nd October 2016, Bihar student credit card scheme provides education loans to 10+2 pass outs to finance their higher studies. This initiative has been planned to improve the state of higher education amenities in Bihar.
According to the report of 2013-14 by Human Resource Development Ministry of India, Bihar had only 6 colleges per lakh eligible people (aged 18-23), the lowest college density. The state also has the lowest literacy rate (61.8%) according to the 2011 Census Report.
Under this scheme, the credit card acts as an on-the-go education loan. School pass out students from Bihar can avail this scheme to plan their higher education expenses. Advantages of Bihar student credit card scheme are –
- Students applying for colleges can draw an education loan up to Rs. 4 Lakh. About 5 Lakh students can avail this scheme.
- Interest charged on loan would be as low as of 4%. For women, transgender and disabled individuals, interest rate charged will be 1%.
- No interest will be charged during the span of his education course. Suppose a student is pursuing BTech, he/she will not be charged interest for the 4 years duration of his/her course.
- He/she also benefits from an additional grace period of 1 year after he/she has completed the course.
- If a student still has difficulty in repaying the loan, he/she can extend the repayment tenor by requesting DRCC (District Registrar -cum-Counselling Centre) of the same via a written application.
- The maximum age limit has been raised to include more aspirants under the scheme. For the general category, the age limit is now 30 years instead of 25 years. Whereas for SC-ST and women of all classes, the upper cap is 33 years.
By availing Bihar student credit card scheme, students can not only finance their higher studies but also have lenient interest rates and a flexible tenor to repay their loan.