PATNA: Chief minister
Nitish Kumar on Wednesday launched the
Bihar State Education Finance Corporation, set up to boost the government’s ambitious
student credit card scheme.
“The scheme aims at raising the state’s gross enrolment ratio (GER) for higher studies, which is currently 14.3% as against the national average of 24%. We intend to raise it to at least 30% in the next five years,” the CM said, adding the government would work to take the GER up to 35% and 40% in consequent years.
Girls, transgender and divyang students of
Bihar willing to pursue higher education can now avail education loan up to Rs4 lakh at the interest rate of only 1% while general students would have to pay 4% interest rate.
Nitish said the state government set up the corporation as an alternative to commercial banks to speed up distribution of education loan under the SCC scheme among the students who have passed Class XII. He said the commercial banks prefer to provide education loan mainly to the students pursuing technical education. “But under the state government’s SCC scheme, the loan will be made available to even those who are willing to pursue general education after passing Class XII examination. Even students studying in polytechnic institutions can avail this loan,”
Nitish said.
The CM said banks were taking too much time in sanctioning education loan under the scheme despite the fact that the applicant students were fulfilling all norms. “The banks approved applications of altogether 18,242 students, but sanctioned loan to 12,050 only,” he said, but didn’t disclose how many students actually got loan from banks.
Now, aspirants can approach the district registration and counselling centres (DRCC) with their applications without any fear and they would be provided with the help they need, the CM said. “Since the corporation is a body of the state government, it will be more lenient towards the candidates for recovery. In extreme cases, the loan taken by a candidate may even by waived,” Nitish said.
