Bihar Student Credit Card Scheme: Pros and Cons

The Government of Bihar launched the Bihar Student Credit Card Scheme with an intention to increase GER in the state by providing students with finances for higher studies. The scheme ensures no 10+2 pass lack in finances for higher studies. 

Under the scheme, students are entitled to avail a loan amount of up to Rs. 4 lakh that can be used in payment of university tuition fee, hostel fee, purchase of study material, books, laptop etc. The loan is owned by the government and has low or negligible interest rate of 1% for girls, transgender, and candidates with physical disability. 

The credit scheme is highly beneficial and helps students take the initial step in pursuit of their dream career. Government of Bihar has proposed lenient repayment process for the loans which proves to be beneficial for the students. Students have to start repaying the loan only after completion of course of study. They are even provided with a relaxation period until they have secured a job.  In certain cases, government may abjure the loan amount depending on various factors. 

Even if beneficial, the student credit card has limitations when compared to traditional credit cards. Non-availability of discounts, offers, restricted use and limited credit amount can be undesirable in some cases. Availing standard credit cards with low annual fee can be more beneficial in such cases 

The overall GER of India is expected to reach an all-time high figure of 30% by the year 2022 with this initiative. Even though the credit amount is limited, it is exceptionally beneficial for students and parents to fund the involved educational expenses. 

Shailendra Kumar

Shailendra Kumar is an experienced Tech Reviewer and Financial Consultant who has 6+ years experience in the field of finance and e-Commerce.

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