In a major push for higher education access, Bihar Chief Minister Nitish Kumar recently  announced that all loans under the state’s flagship Student Credit Card Scheme will now be interest-free, a significant reform that is expected to benefit thousands of aspiring students.

The scheme, launched in 2016 under the Saat Nischay Yojana, has been a cornerstone of Bihar’s efforts to support Class 12 graduates pursuing higher studies. Until now, loans of up to ₹4 lakh were available at 4% interest for general applicants and just 1% for women, differently-abled, and transgender students. With the latest decision, every applicant will receive loans at zero interest.

Kumar also relaxed repayment terms to ease financial pressure on young graduates. The repayment tenure for loans up to ₹2 lakh has been extended from five years (60 installments) to seven years (84 installments), while loans above ₹2 lakh can now be repaid over 10 years (120 installments) instead of the earlier seven.

“Our aim is to ensure that more and more children of Bihar get the opportunity to pursue higher education. With these new provisions, students will gain confidence and pursue education with greater enthusiasm, securing not only their own future but also that of the state and the country,” Kumar said in a statement shared on social media.

The move is being seen as a bold expansion of the state’s education welfare policies, with the potential to ease the financial burden of thousands of families and improve Bihar’s higher education enrollment rate.