Bihar government readies to launch student loan scheme

PATNA: Two months before the new financial year, the Bihar government has undertaken a special exercise to finalise parameters of its Students’ Credit Card (SCC). One of the seven resolves (Sat Nischay) of Chief Minister Nitish Kumar, the scheme aims to provide up to Rs 4 lakh loan at subsidised interest rates to pursue studies after Class 12.

"Banks already give loans to students under the central government’s student loan scheme. The best way for successful implementation of Bihar’s Students’ Credit Card scheme will be to increase the number of beneficiaries under the existing student loan scheme," a source in the state’s finance department said.

According to him, banks avoid disbursing loan to many beneficiaries as they fear it may not be paid back. "So, state government is looking to allay the fears of banks about increase in the number of non-productive assets when the SCC scheme begins. Apart from a guarantee to banks for disbursing loans to students, the state government may go for further rebate, the source added.

The Bihar government wants banks to provide loans to students who seek a loan for all courses. The government has planned to set up registration centres at district levels to collect applications from students who want to be covered under the SCC scheme. "All such applications are supposed to be approved by the competent authority of the state government," the source said. Students may have to quote their Aadhar number in the application. The government plans to make digital copy of applications to ensure transparency.