Student Credit Cards: The education loan under “Student Credit Card” (SCC) is availed by students under the Higher Education Scheme of the Bihar government. So, here is a key notice for them: Bihar Education Finance Corporation (BEFIC) has started the process of recovery of loans. If you have finished your studies yet still are without a job, one needs to understand why affidavit submission is necessary.
If failed to do by December 31, it not only can lead to legal actions but also affect your finances badly. Let’s read about this process.
Why is it that Affidavit is Necessary?
The Student Credit Card Scheme by the Bihar government provides financial assistance to the students for higher education. After completing studies, loans may become difficult to repay, especially for those unemployed.
In such situations, the government grants relief to the students through an affidavit which is regarded as a declaration of financial status.
Process for Submitting the Affidavit:
Dates: Between December 15 and December 30, 2024.
Location: DRC Centre in Basdila.’
Process: Students will submit an affidavit at the finance corporation office stating that they are unemployed and can’t afford to pay back the loan at this time.
Importance of Affidavit:
Immediate Relief: Submitting the affidavit temporarily removes the burden of repayment. Evade Legal Action: If you do not submit the affidavit, the legal proceeding may take effect.
What Happens When the Affidavit is Not submitted?
Currently, the students without the affidavit would be recalled into loan recovery proceedings. Such may include:
- Issuance of Notice
- Preparation of a list of students who have not submitted the affidavit.
- Notices will be sent, demanding loan repayment.
- Legal Action:
- If the loan amount is still unpaid after notice, it will be a certificate case.
- This could lead to legal proceedings adverse to your credit score and financial standing.
Guidelines for Students Who Are Employed
For students who have finished their studies and found employment, there is no need to submit an affidavit.
What Needs to Be Done?
- Pay the First Installment: The amount of the first installment of the loan should be paid by December 30, 2024.
- Easy EMIs:The loan can be paid back by conveniently spreading it over easy monthly installments.
Major features of Student Credit Card Scheme
This initiative has been brought by the Bihar government to facilitate higher education for students.
Key Highlights:
Loan Amount:
- Loans amounting to ₹4 lakh are extendable.
- It covers graduation, technical course study, other higher education programs.
Eligibility:
- Students enrolled in any recognized college outside the state of Bihar as well as within the state are eligible.
- Priority will be given to graduation courses, post-graduation courses, and technical courses.
Loan Repayment Procedure:
On employment, the loan would be repayable in simple monthly installments (EMIs).
Eligible Colleges in Gopalganj and Other Districts
The Bihar government has designated specific colleges as eligible under this scheme. These include:
- Polytechnic College, Sipaya.
- Engineering College, Sipaya.
- Kamala Rai College, Gopalganj.
- Mahendra Mahila College, Gopalganj.
- Gopeshwar College, Hashua.
- BPS College, Bhore.
- Two Private Nursing Colleges.
- Three Private ITIs.
Ways to avail SCC scheme benefits
If you have availed loan under SCC scheme, then these tips might help you:
- Timely Information:
- Submit affidavit in time in case of unemployment.
- Pay First Installment:
- If employee, pay the first installment on or before December 30.
- Respond Promptly:
- Respond immediately, if received any notice, this will help avoid any legal action.
Consequences of Non-Repayment
Failure to repay the loan or submit the affidavit on time can lead to serious consequences:
- Impact on Credit Score.
- Difficulty in Obtaining Future Loans.
- Increased Financial Burden Due to Legal Proceedings.
Conclusion / Student Credit Cards
The Student Credit Card scheme of the Bihar government is an important channel through which once can achieve his/her goals of higher education. No doubt, without completing the above-mentioned processes in time, people can never avail the scheme.
- So, those who are not working should submit their affidavit from December 15 to December 30.
- For those in jobs, the first being due by December 30th.
Timely action, as always, will save you from litigation and keep you safe financially.
FAQs
Q1. What is the last date for submitting the affidavit?
The last date for submitting the affidavit is December 30, 2024.
Q2. Where should the affidavit be submitted?
At the finance corporation office located in the DRC Centre campus, Basdila.
Q3. Do employed students need to submit an affidavit?
No, employed students only need to pay the first installment.
Q4. How much loan is provided under the SCC scheme?
A maximum of ₹4 lakh loan is provided.
Q5. What is the loan repayment process?
The loan is repaid in easy monthly installments after securing employment.
Braj Verma is a resident of Rajgarh in Madhya Pradesh and is a content writer and freelancer by profession. He has a degree in Political Science from Barkatullah University, Bhopal. He has expertise in subjects like credit cards, banking, loan, insurance, political analysis and digital marketing.