Bihar Student Credit Card Scheme Revamped: Interest-Free Loans for Seven Years

The Bihar Student Credit Card Scheme has undergone significant changes, allowing students to repay education loans interest-free for up to seven years. Chief Minister Nitish Kumar's announcement aims to ease financial burdens on students ahead of the 2025 elections. With extended repayment periods and the elimination of interest rates, this initiative is expected to boost educational opportunities and support students pursuing higher education. Experts view this move as a strategic political decision to gain favor with the youth and their families during the election season.

By Ambika Singh Sep 18, 2025, 11:15 IST

Overview of the Bihar Student Credit Card Scheme

Bihar Student Credit Card Scheme Update: Exciting news for students in Bihar! In a strategic move ahead of the 2025 Bihar Assembly elections, Chief Minister Nitish Kumar has introduced significant modifications to the Bihar Student Credit Card Scheme. These updates allow students to repay their education loans without interest for a period of up to seven years. Additional enhancements to the scheme have also been announced.

Key Changes to the Scheme

Interest-Free Loans:
With the recent changes, students will no longer be required to pay any interest on their loans for seven years. Previously, male students faced a 4% interest rate, while female, disabled, and transgender students had a 1% interest rate. Now, all students will benefit from interest-free loans.

Flexible Repayment Options:
The government has not only eliminated interest but also extended the repayment period. Loans up to ₹2 lakh can now be repaid over seven years instead of five. For loans exceeding ₹2 lakh, the repayment period has been extended to ten years.

Background of the Scheme

Inception and Objectives:
The Bihar Student Credit Card Scheme was initiated on October 2, 2016, as part of the "Saat Nischay Yojana." Its primary goal is to ensure that students who have completed their 12th grade can pursue higher education without financial barriers. Initially, the scheme offered loans of up to ₹4 lakh.

Chief Minister's Vision

Nitish Kumar's Commitment:
In a social media post, CM Nitish Kumar emphasized the importance of enabling as many students as possible to access higher education. He believes this initiative will uplift students' spirits and allow them to focus entirely on their studies, ultimately contributing to the future of Bihar and the nation.

Political Implications

Strategic Move Before Elections:
Experts suggest that this initiative will provide immediate relief to students and their families during the election period. With many students from Bihar seeking higher education abroad, the burden of loans has been a significant concern. The removal of interest is expected to alleviate this pressure, leading some to view it as a calculated political strategy.