The Bihar Cabinet on Saturday gave its nod for setting up of a ‘Bihar State Education Finance Corporation’ in order to disburse loans for Student’s Credit Card (SCC) scheme in view of banks’ reluctance in doing it.
The meeting, chaired by Chief Minister Nitish Kumar, gave green signal to proposal of Finance Department to set up the corporation in order to disburse education loan among students, Cabinet Department’s Special Secretary Upendra Nath Pandey said.
The corporation will come into effect from April 1, 2018, Mr. Pandey said adding a total of 131 posts have been created for the corporation.
It will be headed by a Chief Executive Officer (CEO), he added.
Deputy CM Sushil Kumar Modi, while reviewing the loan disbursement by various banks in the State on February 5, had said that the State government would set up a corporation to disburse loans for the scheme.
“The banks appeared reluctant in disbursing SCC loans as their performance on this count was not satisfactory,” Mr. Modi, who also holds Finance portfolio, had said.
The Bihar government launched the SCC scheme on October 3, 2016.
Under the scheme, students are able to get education loan of up to Rs. 4 lakh for pursuing higher education after completing 10+2.