The Bihar government’s Student Credit Card Scheme has emerged as a major support system for higher education aspirants. The scheme allows financially weak but talented students to pursue studies in recognized colleges and universities. Through this initiative, eligible students receive government-backed education loans to cover academic expenses.
Over the years, the scheme has helped thousands of students access professional and higher education. It has played a key role in reducing financial barriers for families with limited income. However, despite its benefits, challenges related to loan repayment have now come to the forefront.
Interest Waiver Provided to Reduce Student Burden
To ease financial pressure, the state government decided to waive interest on student credit card loans. Students who took loans after 2018 are eligible for this interest waiver. Those who already paid interest will not receive refunds. However, no further interest will be charged on the remaining principal amount.
This decision significantly reduced repayment stress for students. It also allowed graduates more time to stabilize their careers before beginning repayments. The move was welcomed by beneficiaries across the state.
According to official data, interest has been waived for nearly 3,89,363 students. Despite this relief, a large number of beneficiaries have still not started loan repayment.
Thousands Yet to Begin Loan Repayment
Even after the interest waiver, around 62,436 students have not begun repaying their loans. This has raised serious concerns within the administration. Authorities have started identifying defaulters at the district level.
The responsibility of preparing defaulter lists has been given to the District Registration and Counseling Centers. These lists have already been compiled in several districts. By the end of January, certificate cases are expected to be filed against defaulters in all 38 districts.
Officials have indicated that strict action may follow if repayments do not begin soon. This step is aimed at ensuring discipline within the scheme.
Patna Records Highest Number of Defaulters
The situation in Patna district is particularly worrying. As many as 6,938 students in the capital have not started loan repayment. This is the highest figure reported from any district so far.
According to officials from Bihar State Financial Corporation, around 5,000 students in Patna have already received loans. Verification of remaining applications is still underway. Authorities stated that pending applications are being processed rapidly.
The high number of defaulters in Patna has prompted closer monitoring. Officials believe awareness and follow-up efforts need strengthening in urban districts.
Eligibility Criteria for Student Credit Card Loan
The Student Credit Card Scheme is available only to permanent residents of Bihar. Applicants must have passed their intermediate examination from the state. The scheme is designed for students who show academic merit but lack financial resources.
Loans are provided for admission in recognized institutions only. The focus remains on supporting higher education and professional courses. Authorities emphasize that misuse of funds is strictly monitored.
The objective is to ensure that deserving students are not denied education due to economic hardship.
Clear Repayment Rules for Beneficiaries
The loan repayment structure under the scheme is clearly defined. Students are required to begin repayment one year after completing their studies. This grace period allows time for employment or income generation.
Students who have taken loans up to four lakh rupees must repay the amount within ten years. Those who borrowed smaller amounts are required to complete repayment within seven years. These timelines aim to balance responsibility with affordability.
Officials stress that timely repayment ensures sustainability of the scheme. It also allows future students to benefit from the same support.
Online Application and Verification Process
Applications for the Student Credit Card Scheme are submitted online. Students must upload all required documents during the application process. This digital system helps maintain transparency and efficiency.
After submission, documents undergo physical verification by banks and education department officials. Once approved, the student credit card is issued. The loan amount is then disbursed according to institutional fee structures.
Required documents include Aadhaar cards of the student and parents. PAN card, academic certificates, residence proof, bank passbook, and college fee details are also mandatory.
Counseling Centers Working to Improve Awareness
The government has established counseling centers in various districts. These centers guide students and families about loan conditions and repayment responsibilities. Officials regularly conduct awareness drives through these platforms.
Students are advised on financial planning and repayment schedules. Authorities believe such counseling can reduce future defaults. Families are also encouraged to support timely repayments.
Efforts are ongoing to ensure students understand the long-term implications of loan default.
Government Balances Support With Accountability
The Bihar government maintains that the Student Credit Card Scheme remains a welfare-oriented initiative. At the same time, accountability is necessary to protect public funds. Strict action against defaulters is being considered as a corrective measure.
Officials believe that legal action will serve as a warning for others. It may help reinforce financial discipline among beneficiaries. The goal is not punishment, but compliance.
A balanced approach is being adopted to safeguard both student interests and government resources.
Scheme Success Depends on Timely Repayment
The Student Credit Card Scheme has transformed access to higher education in Bihar. It has enabled students from modest backgrounds to dream bigger. However, its long-term success depends on responsible participation.
Interest waivers have reduced financial strain on students. Now, timely repayment has become the central challenge. Authorities emphasize cooperation from beneficiaries.
If repayments improve, the scheme can continue supporting future generations. It can also promote financial responsibility among young professionals.
