Bihar CM waives interest on education loans ahead of polls
What's the story
Bihar Chief Minister Nitish Kumar has announced a major relief for students ahead of the upcoming assembly elections. The education loans under the Student Credit Card Scheme will now be interest-free for all applicants. Kumar announced this on the social media platform X, saying, "I am very happy to inform you that now the amount of education loan given under the Student Credit Card Scheme will be interest-free for all the applicants."
Twitter Post
Nittish Kumar's announcement on X
बिहार में 07 निश्चय योजना के अंतर्गत 12वीं कक्षा उत्तीर्ण छात्र जो उच्च शिक्षा प्राप्त करना चाहते हैं उनके लिए 02 अक्टूबर 2016 से बिहार 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
Repayment extension
Loan repayment period extended
In addition to waiving interest on education loans, the Bihar government has also extended the loan repayment period. Loans up to ₹2 lakh will now be repaid in a maximum of 84 monthly installments (seven years), instead of 60 monthly installments (five years). For loans above ₹2 lakh, the repayment period has been extended to a maximum of 120 monthly installments (10 years) from the earlier limit of 84 monthly installments (seven years).
Scheme history
Scheme to boost students' morale
The Bihar Student Credit Card Scheme was launched on October 2, 2016, with the aim of making higher education accessible to students. Kumar said this move is aimed at boosting students' morale and encouraging them to pursue higher education with enthusiasm and dedication. He added that these decisions would not only shape their future but also contribute to the state's and country's development.
Election timeline
Bihar assembly elections likely in November
The Bihar assembly elections are likely to be held in November, possibly in two or three phases before the term of the current Assembly ends on November 22, 2025. The National Democratic Alliance (NDA), which includes the Bharatiya Janata Party (BJP), Janata Dal (United) [JD(U)], and Lok Janshakti Party (LJP), hopes to retain power in Bihar. The INDIA bloc is its major contender, comprising the Rashtriya Janata Dal (RJD), Congress, and Left parties.