Summary
Kalinga Sikhya Sathi Yojana offers student loans of up to Rs 10 lakh at 1% interest
Bihar Student Credit Card Yojna offers student loans of up to Rs 4 lakh at 4% interest with some concessions for girls, transgender students and persons with disabilities
The students’ credit card scheme launched by the West Bengal government that offers students up to Rs 10 lakh loan, has at least two predecessors in neighbouring states.
Odisha and Bihar have had their homegrown education loans for students for the past five years.
Edugraph takes a look at both the schemes and the benefits they promise:
Kalinga Sikhya Sathi Yojana (KSSY), Odisha
Launched by Odisha chief minister Naveen Patnaik in 2016, KSSY offers loans to students for higher studies.
Students can avail themselves of a loan of up to Rs 10 lakh at only 1% interest under the scheme. Candidates can apply for the scheme both online and offline. Offline applications can be submitted at any of the scheduled bank branches. For online applications, students need to visit the official website of the Odisha higher education department dheodisha.gov.in.
Key features of KSSY:
Eligibility criteria: The applicant must be a resident of Odisha with an annual family income of not more than Rs 6 lakh. Those already benefiting from similar state or central government schemes are not eligible.
Repayment policy: For a loan amount of up to Rs 7.5 lakh, the repayment period is 10 years, including the moratorium period. For loans of Rs 7.5 lakh to Rs 10 lakh, it is 15 years including the moratorium period.
Courses covered: Medical (MBBS / MD), law (LLB / LLM), management (BBA / MBA / MBM), engineering (mechanical / electrical / civil / computer) and other vocational courses.
Documents required: Students need to submit copies of their ration card, Aadhaar card, PAN card, bank passbook, income certificate and the marksheet of last passed examination, along with their mobile number and a passport-size photograph.
Bihar Student Credit Card Yojna, Bihar
The Bihar Student Credit Card Yojna was introduced in 2016 to offer financial support to students who have cleared their Class XII exams, but are unable to pursue higher education owing to a funds crunch.
Students can avail a loan of up to Rs 4 lakh at 4% interest. The interest rate is lowered by 1% for girls, transgender students and persons with disabilities.
Key features of the credit card scheme:
Eligibility criteria: The applicant must be an Indian national and a resident of Bihar, 25 years old or younger. Students pursuing general, polytechnic and technical courses can apply for the loan.
Applicants need to clear an intermediate exam from an institution recognised by the Bihar School Exam Committee, the Central Board of Secondary Education or any equivalent board. They need to be enrolled for higher education in an educational institution recognised by the regulatory boards, agencies of the Bihar government, other state governments or the Centre.
Repayment policy: The credit card repayment begins once the course is complete and the candidate secures a job. In special cases, the government can choose to waive the outstanding amount.
When to use the card: The student credit card can be used to pay school, college, hostel, library, laboratory and examination fees. It can pay insurance premium, caution deposits or buy books, computers and other equipment, instruments, uniforms and anything else required to complete the course.
Documents required: Applicants need to submit Class X and XII marksheets; documents that are proof of admission to a higher education institute; address and identity proof documents such as PAN card and Aadhaar card; bank account statements, family income certificate and Form 16.
Last updated on 31 Dec 2021
