Bihar Announces Interest-Free Loans for Class 12 Students
Interest-free loans for all Class 12 passers.
The Bihar government announced on Tuesday, September 16, 2025, that students who have passed their Class 12 board examinations will now receive interest-free loans under the Bihar Student Credit Card Scheme. This initiative, launched in Patna, aims to remove financial barriers and boost access to higher education across the state.
Previously, the scheme offered loans up to Rs 4 lakh at a 4 per cent interest rate for general male applicants and a 1 per cent rate for female, differently-abled, and transgender applicants. Chief Minister Nitish Kumar, in a post on X, declared, “Now, the loan will be interest-free for all applicants,” marking a significant policy shift. The scheme, in place since October 2, 2016, has been a cornerstone of Bihar’s efforts to support educational aspirations.
To further ease the financial burden, the repayment terms have been made more flexible. Loans up to Rs 2 lakh can now be repaid in up to 84 monthly instalments, extended from the earlier 60. For loans exceeding Rs 2 lakh, the repayment period has been stretched from 84 to a maximum of 120 monthly instalments, providing students with greater financial flexibility.
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Kumar emphasized that the initiative reflects his government’s commitment to ensuring that no student is denied higher education due to financial constraints. “The objective is to ensure that students can pursue higher education,” he stated, adding that these measures will “boost the morale of students, enabling them to pursue higher education with greater enthusiasm and dedication.” He highlighted that the scheme not only shapes the future of individual students but also strengthens the prospects of Bihar and the nation.
This bold policy is expected to inspire thousands of students to chase their academic dreams with renewed vigor, positioning Bihar as a leader in educational reform and empowerment.
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