Interest Rates & Repayment

1. The Bihar Government extends education loans to 12th pass-out students on the Bihar Student Credit Card scheme, offering loan amounts of up to Rs. 4 lakhs.
2. General students of Bihar can repay the loan at a 4% interest rate.
3. Girls, transgender, and divyang (disabled) students of Bihar are eligible for a lower 1% interest rate on the loan.

Repayment

1. The moratorium period is 1 year after the completion of the course or 5 years from the loan disbursement, whichever comes earlier.
2. After the moratorium period, students have:
3. 5 years to repay the loan in 60 installments for loans up to Rs. 2 lakhs.
4. 7 years to repay the loan in 84 installments for loans beyond Rs. 2 lakhs.
5. If a student secures a job after completing the course, Equated Monthly Installments (EMIs) will start immediately.
6. Borrowers can make repayments via cheque, DD, ECS, NACH, or any other approved method.
7. If, during the repayment period, the student does not secure employment, repayment will be paused until they find employment. However, students must submit an affidavit to the District Resident Cum Counselling Office (DRCC) acknowledging their unemployment and lack of a source of income, every last fortnight of June and December.
8. In cases where a student is unable to repay the loan, suitable recovery procedures may be initiated as per the scheme’s norms.