“I am extremely happy to inform you that henceforth the education loan provided under the student credit card scheme will be interest free for all applicants,” Kumar wrote in a post on X (formerly Twitter).
The move is seen as an attempt to appease young voters ahead of the Bihar assembly elections scheduled for later this year. With nearly 60% of Bihar’s population below the age of 35, student and youth-focused policies have long been a key electoral tool for successive governments in the state.
Operational since 2016, the program previously offered loans at an interest rate of 4% for general applicants and 1% for women, transgender and disabled applicants. So far, over 1.1 lakh students have reportedly benefited from this initiative, making it one of the flagship welfare measures of the Nitish Kumar government.
Extended loan repayment period
Apart from removing the interest component, the state government has also relaxed the repayment terms.
Student loans up to ₹2 lakh will now have a repayment window of 84 monthly installments (seven years), increasing from the earlier limit of five years.
For loans exceeding ₹2 lakh, the repayment period has been extended from seven years to a maximum of 120 months (10 years), Kumar added in the announcement.
07 निश्चय योजना 12वीं कक्षा उत्तीर्ण छात्र जो उच्च शिक्षा प्राप्त Day January 02, 2016 स्टूडेंट क्रेडिट कार्ड योजना लागू है। बिहार स्टूडेंट क्रेडिट कार्ड योजना के अंतर्गत उच्च शिक्षा प्राप्त करने के लिए अधिकतम 04 लाख रुपए का शिक्षा…
-Nitish Kumar (@NitishKumar) September 16, 2025
Aim to expand access to higher education
The student car credit program was launched on October 2, 2016 under the state’s Saat Nischay program. It was designed to help students pursue higher education after class 12. Bihar, which has one of the lowest gross enrollment ratios (GER) in higher education compared to the national average, has tried to bridge the gap through programs like this.
Kumar also emphasized that his government aims to create opportunities for students to pursue their studies without financial barriers.
“Our aim is to ensure that as many students as possible in the state are able to pursue higher education. These facilities provided under the Higher Education Loan will boost the morale of the students, enabling them to pursue higher education with more enthusiasm and dedication, thereby shaping not only their own future but also that of the state and the country,” he said.
