Bihar Chief Minister Nitish Kumar announced a significant overhaul of the state’s Student Credit Card Scheme, eliminating interest charges entirely for all education loan applicants and extending repayment periods to ease financial burden on students and families.
The reform transforms the lending structure of the scheme, which was launched on October 2, 2016, under the 07 Nishchay Yojana to provide education loans up to Rs 4 lakh for Class 12 graduates pursuing higher studies.
Nitish Kumar takes on X about Bihar student’s credit card:
Under the previous system, general category applicants paid 4 percent interest on their loans, while women, differently-abled, and transgender students benefited from a reduced 1 percent interest rate. The new policy removes all interest charges regardless of applicant category.
“I am very happy to inform that now the amount of education loan given under Student Credit Card Scheme will be interest free for all applicants,” Nitish Kumar announced on social media platform X in Hindi.
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 Repayment Timeline
Alongside the interest waiver, the state government has substantially revised repayment schedules to reduce monthly financial pressure on graduates. Loans up to Rs 2 lakh, previously requiring repayment in 60 monthly installments over five years, now allow 84 installments spanning seven years.
For loans exceeding Rs 2 lakh, the repayment period has increased from 84 installments over seven years to a maximum of 120 installments across 10 years. Officials indicate this extension aims to make loan repayment more manageable for students after completing their education and entering the workforce.
Educational Access Goals of Bihar Govt.
CM Nitish Kumar emphasized that these modifications were designed to ensure “maximum number of students of the state can get higher education.” He stated the enhanced facilities would boost young people’s morale, encouraging continued academic pursuit to benefit both individual futures and broader state and national development.
The Student Credit Card Scheme has already assisted thousands of Bihar students in accessing higher education opportunities. With complete interest elimination, state officials anticipate increased participation in the program.
The reforms address long-standing concerns about educational loan affordability in a state where many families face financial constraints in supporting their children’s higher education ambitions. The changes position Bihar among states offering the most favorable educational lending terms in India.
