Bihar Cabinet nod to Student Credit Card scheme

14 September, Patna

With an objective to broaden the reach of higher education among poor students, Bihar cabinet today gave its nod to Student Credit Card scheme enabling students to get loan up to Rs four lakh for pursuing higher education.

The state cabinet approved a proposal of state Education Department to this effect in a meeting chaired by Chief Minister Nitish Kumar. State Cabinet and Coordination Department Principal Secretary Brajesh Mehrotra said here the credit card scheme had been introduced from 2016-17 to enable students who had passed their 12th standard examination to get loan up to Rs four lakh.

Mehrotra said students can meet their expenses on tuition fees, hostel fees and purchase of text books by availing the loan facility. He said the state government which had introduced the scheme under its seven-point resolve would give guarantee to banks on repayment of loan and interest.

He said nearly 10 per cent interest would be charged on loan. He said the state government had fixed the target of giving loan to five lakh students in the first year with a focus on increasing the number of students by one lakh every year. ”Students can apply for loan online,” he added.