Education and Career News

As Banks reluctant, Bihar to set up government body for student’s credit card loan scheme

As Banks reluctant, Bihar to set up government body for student’s credit card loan scheme

PATNA: Bihar Deputy Chief Minister Sushil Kumar Modi today announced that the state government would set up a corporation to disburse loans for Student’s Credit Card (SCC) scheme in view of the banks’ reluctance in doing it.

“The state government has decided that we will provide loans for Student’s Credit Card scheme through its own corporation which is being set up,” Mr Modi, who also holds the finance portfolio, told reporters here.

At a meeting convened to discuss loan disbursement by various banks in the state, he said banks appear reluctant in disbursing SCC loans.

To a question, Mr Modi said banks will continue to disburse education loans as it has been doing along with the SCC scheme.

Asked how the proposed corporation will function, he said the details are being worked out in this regard.

Bihar government launched the SCC scheme on October 3, 2016. Under the scheme, students are able to get education loan of upto Rs. 4 lakh for pursuing higher education after completing 10+2.

Banks have received 17,500 applications which have been routed through the government for SCC loans so far since its launch and the banks have sanctioned loans for 14500 applications, bank sources said.

— PTI