Bihar Government Introduces Interest-Free Education Loans for Students

In a groundbreaking move, the Bihar government has declared that education loans under the Student Credit Card Scheme will now be interest-free. Chief Minister Nitish Kumar shared this news on social media, highlighting the initiative's aim to support students pursuing higher education. The scheme, which has been operational since 2016, will now allow for extended repayment terms, making it easier for students to manage their finances. This decision is expected to boost student morale and encourage more individuals to seek higher education, ultimately benefiting the state and the nation.

By Ambika Singh Sep 16, 2025, 15:16 IST

Bihar's New Initiative for Education Loans

The government of Bihar, led by Chief Minister Nitish Kumar, has made a significant announcement regarding education loans. In a recent update shared on the social media platform X, CM Kumar revealed that loans provided under the Student Credit Card Scheme will now be interest-free.

This initiative is part of the 07 Nishchay Yojana, which has been in effect since October 2, 2016, aimed at assisting students who have completed their 12th grade and wish to pursue higher education. Previously, the scheme allowed for a maximum loan of Rs. 4 lakh at an interest rate of 4% for general applicants, while women, disabled individuals, and transgender applicants benefited from a lower rate of 1%. Now, all applicants will enjoy interest-free loans.

Additionally, the repayment terms have been extended. Loans up to Rs. 2 lakh can now be repaid over 84 months (7 years), while loans exceeding this amount can be repaid over a maximum of 120 months (10 years).

'Enhancing Student Opportunities'

CM Nitish Kumar emphasized that the goal of this initiative is to encourage more students in Bihar to pursue higher education. He believes that these enhancements in the education loan scheme will inspire students to engage in their studies with greater enthusiasm, ultimately contributing to their personal growth and the development of the state and nation.