Nitish Kumar Unveils Interest-Free Education Loans for Class 12 Graduates

Quick Summary:

• The Bihar government has announced interest-free loans for students who pass class 12 board examinations under the Student Credit Card Scheme to pursue higher education.
• Previously, education loans of up to Rs 4 lakh were provided at different interest rates: 4% for general male applicants and 1% for female, differently-abled, and transgender applicants.
• Chief Minister Nitish Kumar stated that all such loans will now be interest-free for all applicants.
• The repayment term for loans up to Rs 2 lakh has been extended from 60 monthly instalments to a maximum of 84 monthly instalments.
• For loans above Rs 2 lakh, the repayment term has been extended from a maximum of 84 monthly instalments to a maximum of 120 monthly instalments.
• The scheme has been operational since October 2, 2016 and aims to encourage students in Bihar to pursue higher education with enthusiasm and dedication.

Indian Opinion Analysis:
The decision by the Bihar government is an enterprising step toward making higher education accessible and affordable for students across socio-economic backgrounds within the state. Eliminating interest on educational loans is highly likely intended not only as financial relief but also as motivation for more students to seek advanced academic qualifications without apprehension about debt burdens during repayment periods.

By extending repayment tenures substantially-from five years (60 months) or seven years (84 months) earlier-upward versatility provides borrowers greater ease in managing their loan obligations over timeframes stretching up-to ten-years (max..120). indirect positives assisting recipients navigating future prospects employment/post-graduation real-life challenged