Latest News

What is Bihar Student Credit Card Controversy? Why thousands of students are protesting


➡️ Click here to join our Whatsapp Group

Students who choose to pursue higher education by taking loans through the Bihar Student Credit Card are encountering challenges. The banks have recently initiated a 10 percent interest charge on economically disadvantaged students starting from the loan disbursement date. This is contrary to the usual procedure, which involves recovering the loan with an additional four percent interest only after one year following the completion of studies.

A total of 13,988 students fall into this category. Among them, 4,913 students availed loans during the fiscal year 2016-17, while 9,075 students did so in 2017-18. The Education Department and the District Registration and Counseling Center (DRCC) facilitated these loans through banks, amounting to Rs 4 lakh, backed by government guarantees. Upon completing their studies, the banks have levied over Rs 1 lakh in interest on their loan amounts. Despite the absence of government subsidies on interest, distressed students are making appeals to the DRCC office, the Education Department, and the Chief Minister’s Janata Darbar. Unfortunately, no hearings are occurring at any level.

Bihar Student Credit Card Scheme

The Bihar Student Credit Card Scheme started on October 2, 2016, initially providing loans through banks. In 2018, the state government set up the Finance Corporation. Now, economically disadvantaged students receive a Rs 4 lakh loan from the Finance Corporation under the Bihar Student Credit Card for their studies. After completing their education, graduates have a year to secure employment. Subsequently, women and individuals with disabilities face a 1 percent interest rate, while men encounter a 4 percent interest rate. Concerns are raised by family members, questioning why students studying under one scheme are subjected to two different interest rates.

Daily Complaints

The District Registration and Counseling Center (DRCC) at Chhajjubag and the Bihar State Finance Corporation office at Mauryalok are getting numerous complaints daily. Students have made a public appeal to stop the arbitrary actions of banks. However, when asked about this, officials from DRCC and Finance Corporation are avoiding making statements. Confidentially, they admit that there is a flaw in the government policy itself because bank policies are controlled by the central government. In this situation, the state government needs to step in to assist students with their interest-related issues.

What students said?

A student named Rajlakshmi Singh Rathore from Patna availed a Rs 4 lakh loan from the Bihar Student Credit Card for pursuing law. The loan, provided by Bank of India in 2017, has seen an increase to Rs 5,33,522 by December 2023, with an added interest rate of 9.80 percent. The monthly installment (EMI) has been set at Rs 8,899, even though the academic studies concluded only in the year 2023.

Another student, Manoj Sharma from Patna, obtained a Rs 4 lakh loan from SBI in 2017 to pursue a law degree. The bank began charging 10 percent interest from the loan disbursal date. Despite not securing a job or commencing practice, the interest continues to accrue. Interestingly, recent loan applicants are granted loans at a reduced interest rate of four percent and are also given a one-year grace period after completing their studies.

What Education Department said?

Students who availed loans through banks under the Bihar Student Credit Card Scheme between October 2, 2016, and March 31, 2018, are obligated to adhere to the terms and conditions set by the banks. However, since the establishment of the Finance Corporation in 2018, students obtaining loans through this entity are subject to a 4 percent interest rate, while women and individuals with disabilities are required to pay a reduced interest rate of 1 percent.

Leave a Reply

Your email address will not be published. Required fields are marked *

Home
Calculators
Menu
Search