Student Credit Card loans interest-free: In a major relief for students, the Bihar government has declared that all education loans under the Student Credit Card (SCC) scheme will now be interest-free, as announced by Chief Minister Nitish Kumar.
Key Features
- Interest-free loans: Under SCC scheme, interest will be waived; students will not have to pay interest on educational loans under this scheme.
- Loan amount: Up to ₹ 4 lakh per student.
- Eligibility: Students who are permanent residents of Bihar, have passed Class 12, enrolled in higher education (professional / technical / general courses) etc.
- No collateral: The scheme does not require collateral (security) for the loan.
- Flexible repayment / moratorium: Students begin repayment after course completion or after some moratorium period.
Benefits
- Reduces financial burden on students and families by eliminating interest cost.
- Encourages more students from economically weaker sections to pursue higher education.
- Probably increases access to professional / technical courses which often have high fees.
- Easier repayments since debt only principal and no interest will have to be repaid (depending on exact implementation).
Eligibility
- Must be a permanent resident of Bihar.
- Must have passed Class 12. Earlier rules said maximum age of 25 in many cases.
- Enrolled in higher education (degree / professional / technical / general courses). Recognised colleges/institutions.
How to Apply / Process
Here is how the SCC / BSCC (Bihar Student Credit Card / Bihar Student Credit Card Scheme) works:
- Visit the official portal: 7Nishchay-YuvaMission Bihar.
- New applicant registration: Provide name, mobile, e-mail, Aadhaar, OTP etc.
- Fill the BSCC application: choose “Student Credit Card” scheme from dropdown. Fill personal, educational, financial details.
- Upload or submit necessary documents: mark sheets, proof of admission, fee schedule, bank details, domicile, income certificate etc.
- Verification by District Registration & Counselling Centre (DRCC) or equivalent.
- Once approved, disbursement of loan amount via bank, student receives “Student Credit Card” and sanction letter.
Recent Change & Last Date
- The interest-free status is a recent announcement (mid-September 2025).
- There is no deadline announced for applying—applicants can apply under the scheme so long as the scheme is operational.
- The regular eligibility and application procedure apply.
Conclusion
Making the SCC loans interest-free is a major relief for students in Bihar; moreover, it removes a significant financial barrier. “Student Credit Card loans interest-free” thus becomes more than a slogan—it’s a practical enabler of access. Furthermore, when combined with other reforms (like skill-based education), this policy can help more students from lower-income backgrounds aim higher and pursue careers in technical, medical, and commerce fields. Consequently, success will hinge on effective implementation, swift disbursal, and robust awareness among students; therefore, coordinated action by institutions and the state will be essential.
FAQs
1. Is the loan amount still up to ₹4 lakh?
Ans: Yes, that remains the limit under the BSCC scheme.
2. Are there categories with special lower interest or other benefits?
Ans: Traditionally, for girls, Divyang (persons with disabilities), transgender students, there was lower interest (1 %). But with this announcement, all students will have interest‐free loans.
3. When does repayment start?
Ans: After the course is completed and in many cases once the student finds a job or after a moratorium period.
4. What courses are covered?
Ans: General, technical, professional courses; includes things like engineering, medical, law, other higher education recognised by state or central authorities.
5. Does the student need collateral or guarantor?
Ans: No collateral is required. There may be a guarantor process via the DRCC etc.
My self Anita Sahani. I have completed my B.Com from Purbanchal College Silapathar. I am working in Dev Library as a Content Manager. A website that provides all SCERT, NCERT 3 to 12, and BA, B.com, B.Sc, and Computer Science with Post Graduate Notes & Suggestions, Novel, eBooks, Health, Finance, Biography, Quotes, Study Materials, and more.
