In a landmark move, the chief minister of Bihar, Nitish Kumar, has made a significant announcement concerning students of Bihar. The Chief Minister has unveiled a game-changing education loan policy that makes higher education more affordable than ever before.

The announcement is that the education loans taken under the Student Credit Card Scheme (SCC) will now be interest-free for all applicants. Read further to learn more about this.

What is the Student Credit Card Scheme?

  • In Bihar, the Department of Education has introduced a Scheme called the “Bihar Student Credit Card Scheme”. The main aim of this scheme is to encourage students to be able to fulfil their higher education dream.

  • Under this scheme, the students can get a loan amount of up to 4 lakhs at a minimal interest rate, which was at 4% has now been reduced to 0%. 

  • Students can use these loans to fund their higher education in courses like B.Sc, B.A, B.Tech, or MBBS. The maximum repayment period was up to 7 years, which is now increased to 10 years.

  • This scheme is specially designed for students who cannot afford higher education due to financial challenges. The government has made significant changes to the scheme amidst the recent elections, which we will learn further.

Interest-free Education loans for Bihar Students

Good news for the Bihar students. The state has recently had a significant change in the Student Credit Card Scheme (SCC) announced by Chief Minister Nitish Kumar. This will make higher education easier than before.

Under this New Announcement

  • Any education loan, which is covered by SCC, will no longer impose any interest. That means students who take education loans under this scheme are not required to pay any interest.

  • The Loan Repayment time is also increased to a maximum of 10 years.

Loan Amount

Previously

New Update

For loans up to ₹2 lakh

5 years

7 years

For loans above ₹2 lakh

7 years

10 years

Why This Matters?

  • For many talented students in Bihar, a poor financial background is the reason why they are not able to pursue higher studies.

  • With schemes like SCC, students get access to pursue higher education.

  • After taking the education loan, students are not required to repay the loan immediately. The government gives enough time for loan repayment.

  • This reduces the pressure and helps students focus on their careers.

Eligibility to get an Education Loan under SCC

  • The applicant must be a resident of Bihar state and should be at least 25 years old.

  • The applicant must have passed class 12th.

  • The applicant must get admission to a course in an authorised institute.

  • The applicant must complete the entire course.

Can I get a Higher Loan Amount for Higher Studies?

  • Yes, you can get a higher loan amount to pursue higher education in India and abroad. Many Talented students could not afford higher education because of financial constraints. Do not let finances stop you from achieving your academic goals.

  • Many financial institutions, such as public banks, private banks, and NBFCs(Non-Banking Financial Institutions), offer education loans at affordable interest rates. This allows students to achieve their academic goals without thinking about finances.

  • Obtaining an education loan to fund your studies can be quite challenging, with different lenders offering varying options. Contact WeMakeScholars, an organisation partnered with over 15 public and private lenders. When you apply for an education loan through us, our experienced team will help you find the most suitable loan for your higher studies.

 How to apply for a Higher Loan amount to study abroad

  • Students can apply for study loans in multiple ways. Many public banks, private lenders, and NBFCs are offering education loans.

  • An online application process is available for all financial institutions.

  • For offline, visit your nearest bank branch and enquire about the abroad education loan products.

  • Fill out the application form and ask for the documents required to start the education loan for abroad studies application process.

  • Visit the bank again to submit the documents to finally start your student loan process for abroad studies.

  • Take follow-ups from the banks till your loan is sanctioned.

Online Application Process via WeMakeScholars

  • Step 1: Speak to your financial officer at WeMakeScholars by requesting a callback or filling up the application form.
  • Step 2: Give your loan details over the call so that your financial officer can analyse your loan profile.
  • After analysing the loan profile, your financial officer will connect you with the lender that is offering you the best education loan deal.
  • Step 3: Submit your documents on the WeMakeScholars documents portal as per the documents checklist provided to you by your financial officer.
  • Step 4: Your financial officer will carry the process forward and keep you updated.
  • Step 5: Collect your education loan sanction letter from your lender within 15-20 days after you have submitted your documents. 

Benefits of Applying Via WeMakeScholars?

While processing your education loan with WeMakeScholars, you get the following benefits:

  • Negotiation Support - Your financial officer will negotiate with your lender and try to negotiate for you, to get you the education loan at a cheaper rate of interest, if possible.

  • Better Interest Rates - When students process their abroad through WeMakeScholars are 0.5% to 2% lower than what banks usually offer.

  • Free-of-cost Services - All our prime education loan sanctioning services are free of cost for students, as we are funded and supported by the IT Ministry under the Digital India Campaign.

  • End-to-end Support - Your financial officer will continue to render their free services even after your loan is sanctioned, till you repay the last EMI of your loan.

  • Expert Guidance - Your financial officer will set you up with the best lenders, as per your eligibility, after analysing your loan profile and guiding you at every step of the process.

  • Tax Benefits - We will assist in saving maximum tax by taking advantage of tax exemptions under Section 80E, 80C, etc of the Income Tax Department, along with the tax collected at source (TCS).

Conclusion

The Bihar government has announced good news to all the students in Bihar that the government, under the student credit card scheme, is giving interest-free education loans. Whereas there was an interest charged at 4% for education loans under the SCC is now set to 0%. The state has also increased the moratorium period for the same scheme.