Bihar elections 2025: CM Nitish Kumar announces interest free edu loan for Class 12 graduates

Chief Minister of Bihar, Nitish Kumar, on Tuesday announced that the education loans for 12th-class graduates will now be "interest-free" under the Student Credit Card Scheme before the upcoming elections in the state. 

Taking to X, the CM said that this decision aims to "boost the morale of the students", at the same time, encourage many more youngsters to pursue higher education. 

Nitish wrote, "I am extremely delighted to inform you that now the education loan provided under the Student Credit Card Scheme will be interest-free for all applicants." 

Extending the repayment period for student loans, Nitish said that students who borrow loans up to Rs 2 lakh will now be able to repay within 7 years (84 monthly installments), instead of five years. Moreover, those who will avail loans above Rs 2 lakh will be given a repayment period up to 10 years, i.e., 120 monthly installments. The earlier time limit of seven years has been extended to ten years. 

Till now, an education loan of up to Rs 4 lakh for higher education has been provided at an interest rate of 4% for applicants of the general category, while females, differently-abled, and transgender applicants receive it at only 1%. 

The scheme was launched on October 2, 2016, under the 07 Nischay programme, to support students who had passed Class 12th and wanted to pursue higher studies. 

CM Nitish Kumar said, "Our aim is to ensure that as many students as possible in the state can access higher education. These facilities provided in the education loan for higher education will boost students' morale, enabling them to pursue higher education with greater enthusiasm and dedication." 

The Chief Minister described the decision as a step towards expanding educational opportunities and empowering Bihar's youth, which will be "shaping not only their future but also the future of the state and the country."