“I am extremely pleased to inform you that now the education loan provided under the Student Credit Card Scheme will be interest-free for all applicants,” Kumar wrote in a post on X (formerly Twitter).
The move is being seen as an attempt to appease young voters ahead of Bihar assembly polls scheduled to take place later this year. With nearly 60% of Bihar’s population under the age of 35, student- and youth-focused policies have long been a key electoral tool for successive governments in the state.
Operational since 2016, the scheme earlier offered loans at an interest rate of 4% for general applicants and 1% for women, transgender and differently-abled candidates. So far, over 1.1 lakh students are reported to have benefited from the initiative, making it one of the flagship welfare measures of the Nitish Kumar government.
Loan-repayment period extended
Along with removing the interest component, the state government has also relaxed repayment conditions.
Student borrowings up to ₹2 lakh will now have a repayment window of 84 monthly instalments (seven years), increasing from the earlier limit of five years.
For loans exceeding ₹2 lakh, the repayment period has been extended from seven years to a maximum of 120 months (10 years), Kumar added in the announcement.
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
Aim to expand higher education’s access
The Student Credit Cars Scheme was launched on October 2, 2016, under the state’s Saat Nischay Programme. It was designed to support students pursuing higher education after Class 12. Bihar, which has one of the lowest gross enrolment ratios (GER) in higher education compared to the national average, has been trying to bridge the gap through schemes like this.
Kumar also underlined that his government aims to create opportunities for students to continue their studies without financial barriers.
“Our objective is to ensure that as many students as possible in the state can pursue higher education. These facilities provided in the education loan for higher education will boost the morale of students, enabling them to pursue higher education with greater enthusiasm and dedication, thereby shaping not only their own future but also the future of the state and the country,” he said.
