In a major relief for students, the Bihar government has announced that all education loans under its Student Credit Card (SCC) scheme will now be completely interest-free. The move aims to reduce financial stress on young learners and encourage higher education across the state.
About the Student Credit Card Scheme
Launched in 2016, the SCC scheme offers collateral-free education loans to students pursuing higher education, professional courses, or skill development programmes. Previously, while the government subsidised interest to a large extent, some residual interest charges remained.
Key Highlights of the New Decision
100% Interest-Free Loans: All SCC loans — new and existing — will carry zero interest liability for students.
Reduced Financial Burden: Students and their families no longer have to worry about accruing interest during study or repayment.
Encouraging Higher Education: The state expects more students, particularly from rural and low-income backgrounds, to pursue professional and technical courses.
Impact on Students and Families
This policy significantly lowers the cost of education and reduces dropout rates due to financial constraints. It also promotes a culture of timely repayment, as principal repayment remains due but without interest.
Government’s Objective
By making SCC loans fully interest-free, the Bihar government aims to:
Increase gross enrolment ratio in higher education
Support skill development and employability
Empower youth through accessible financing options
Conclusion
This bold move could set a benchmark for other states, reinforcing Bihar’s commitment to improving educational access and reducing student debt burdens.
FAQ Section
Q1. What is the Bihar Student Credit Card (SCC) scheme?
It’s a state-run programme that provides collateral-free education loans to students pursuing higher or professional education.
Q2. What has the Bihar government changed recently?
All SCC education loans are now fully interest-free, meaning students will repay only the principal amount.
Q3. Who can benefit from this change?
All eligible students of Bihar taking or already holding SCC loans for higher education or skill courses.
Q4. Does this apply to existing SCC loan holders?
Yes, the government has announced the waiver applies to both new and existing SCC education loans.
Q5. How will this policy help students?
It reduces financial stress, encourages higher education, and lowers dropout rates due to cost.
Published on : 17th September
Published by : SMITA
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