Bihar Student Credit Card Scheme: Pros and Cons

According to All India Survey on Higher Education (AISHE) 2015, gross enrolment ratio (GER) in higher education of Bihar was 14.3%, which was the lowest in the list. The all-India GER for the same year was however 24.5%.

With such a low percentage of GER, the Indian Government targets to achieve a minimum of 30% GER by 2022.

One of the major reasons behind low GER in Bihar is insufficient finances for higher studies. To address this issue, the Bihar Student Credit Card Scheme was launched in 2016 by State Government of Bihar. The scheme aimed to help students of Bihar pursuing higher studies by providing finances up to Rs. 4 lakh.

One can use the credit to pursue a higher education course, such as B.A., B.Com, B.SC., LLB, BBA, BCA, polytechnic diploma, M.B.B.S, or B.TECH course.

Let us look at the pros and cons of this scheme as it will help you know how to use a credit card wisely –

Pros:

Beneficiaries can avail up to Rs. 4 Lakh credit to finance their higher education.
Interest imposed on student credit cards can be as low as 1% for girls, transgender and individuals with a physical disability.
One can make use of the availed finance in payment of course fee, hostel fee, purchase of books, study materials and laptops.
Recovery procedures for the loan are somewhat lenient as the government owns this amount and in some cases can even be waived off entirely.
10+2 pass students can make use of Bihar Student Credit Card Scheme to pursue any general and diploma courses.
Repayment period starts only after completion of course when you secure a job. Hence, the scheme avail students with ample time to start repayment of a loan.
One of the benefits of this scheme is easy to meet eligibility conditions. Below mentioned are the eligibility criteria one must qualify to avail a credit card under this scheme –

A student must be a resident of Bihar.
One must have completed 10+2 education degree.
Students age shouldn’t be more than 25.
Credit will be availed for admission in only an authorised and accredited institute.
Pursue higher education till the end of course.

8. Documentation required for the Bihar Student Credit Card Scheme is simple and hence reduces the hefty paperwork.

Below mentioned are the documents one has to produce –

Mark sheet of 10+2
Domicile or resident certificate
Selection certificate from approved college for higher studies
Detailed fee structure of the institution, issued by them
Parents bank account statement
Family income certificate and Form-16
KYC documents (Aadhaar, PAN card)
Proof of address

Cons:

Students above the age limit of 25 years cannot avail loan under Bihar student credit card scheme.
The credit card can be used to finance educational expenses only and is not similar to conventional credit cards.

Hence, one can opt for credit cards like the Bajaj Finserv RBL Bank SuperCard. This credit card brings in several industry-first features, which makes it more beneficial.

Loans up to Rs. 4 Lakh with these student credit cards may not be sufficient to keep the rising educational expenses in mind.
Only students of 10+2 pass are eligible for this credit card scheme. So, only students opting for a higher graduation degree post +2 are entitled to it.

The repayment procedure for these credit cards starts only after the student has completed their course of study and has secured a job. Even though the Government of India has relaxed repayment conditions, one should be aware of top things when paying credit card bills.