Bihar Student Credit Card –  A Gateway to Education

Introduction

Education is one of the activities that define the fate of people, as well as nations and states. However, since most students lack capital, they often drop out of school after the given level. In order to overcome this challenge, the Bihar government came up with Bihar Student Credit Card Scheme (BSCCS). This scheme aimed at delivering credit to students so that they can achieve their educational goals.

Besides, this scheme is one of the four among the Seven Resolutions of the Bihar Government regime. The principal objective of this fund is to guarantee that none of the learners drops out of education due to financial problems. Furthermore, the scheme will help students to go through their courses without having the issue of finance bog them down.

The Need for the Bihar Student Credit Card Scheme

Education has played a strong role in lifting people from lower to higher social status. It has also been a critical indicator of social and economic mobility in Bihar. However, despite available data, many socially inclined students never entered university. This was mainly because they could not afford the cost.

When it comes to students, finances have been a major challenge. Many students who come from humble backgrounds find it difficult to undergo tuition fees, bus fare, books and other accommodation charges. Similarly, it has especially affected rural and semi urban regions throughout the course of the recession. In addition, it has been also observed that getting educational loans from banks is also very difficult because of numerous formalities involved. The demand for the providing of collateral security and high ratio of interest.

In order to overcome this problem the Bihar Government has introduced Bihar Student Credit Card Scheme in the year October 2016. This scheme was a good attempt to try to solve the finances challenges students experience. It was to provide students an opportunity of easily sourcing for finance to fund their college education.

Bihar Student Credit Card – Objectives of the Scheme

The Bihar Student Credit Card introduced with several key objectives:

• Financial Support for Higher Education:

The main aim is to provide scholarships to needy students. In addition, these scholarships cover various technical, non-technical, professional, and technical courses.

• Empowerment of Youth:

This scheme offers students a chance to finance their education. Moreover, it aims to make young people in Bihar independent. As a result, they can compete better for jobs.

• Increase in Gross Enrollment Ratio (GER):

One of the broader goals is to improve the GER among students. In particular, this focus is on those pursuing higher education in Bihar. Unfortunately, Bihar has a lower GER compared to many other Indian states.

• Reduction of Out-Migration:

Many students from Bihar move to other states for cheaper education. Therefore, this scheme aims to increase enrollment in higher education within Bihar. Consequently, it helps reduce the number of students leaving the state for studies.

• Promotion of Skill Development:

This scheme encourages students to pursue technical and professional programs. Ultimately, it aims to create a trained workforce. Thus, this trained workforce will benefit the economy of Wyoming State.

Bihar Student Credit Card – Features of the Scheme

Some of the standout features include:

• Loan Amount:

Under this scheme, students can get loans up to ₹4 lakhs for their projects. Moreover, this amount can be used to cover other expenses. These expenses include fees, books, learning materials, and accommodation.

• No Collateral Required:

Unlike traditional loans, students do not need to provide any security. Thus, this makes it easier for economically disadvantaged students to access loans.

• Low-Interest Rate:

The scheme offers loans at a low interest rate. Specifically, male students pay a token rate of 4%. While female students and disabled students pay just 1%. Lending institutions earn little interest from these loans after students graduate.

• Flexible Repayment Terms:

Students begin repayment one year after finishing their course. This provides enough time for them to find a job before starting to repay the loan. Additionally, students have up to 15 years to repay the loan. During this time, they can make small payments that are affordable.

• Wide Range of Eligible Courses:

The scheme covers a variety of courses. These include undergraduate, postgraduate, diploma, and other programs. Furthermore, the courses offered are in professional fields. Like engineering, medicine, law, and business management.

• State Government Guarantor:

The Bihar government guarantees loans under this scheme. Therefore, students do not face the problem of needing a guarantor. Which is common with traditional bank loans.

Bihar Student Credit Card – Application Process

• The procedure for how to avail Bihar Student Credit Card Scheme is not long. First, students have to register on the internet, and then they are given an account to log in. They have to go to the website of the carrier. Then they should input their own details, for instance the phone number and the school they attend.
• Then, students have to compile their documents ready. They have to upload scanned copies of their 10th and 12th certificates, and scanned copies of their class X and class XII certificates. Also, they must show proof of residence of the place in which they reside. However, they should also ensure that they produce an admission to an accredited school. The last requirement of each student is to scan and submit a recent photo of himself or herself.
• Last of all, the process of verification is done after submitting the necessary documents. The district administration will examine all documents submitted to them. When the verification process is done the loan is given.
• Last but not least the amount of the loan will be disbursed. The money will be wired directly to a students’ bank account or to the relevant learning institution.

Conclusion

The Bihar Student Credit Card Scheme has been a revolution for students pursuing higher education in Bihar. Firstly, it offers hope to those unable to afford their education. As a result, the free education scheme has improved the quality of life for students. Moreover, it has also benefited the state in a broader sense. In this way, the BSCCS serves as an example of what the government can achieve when addressing systemic issues. Ultimately, it supports the development of the youth through education.