How Will a Student Credit Card Help in My Higher Education?

Bihar is the least literate Indian state, with approximately 63.82% of resident individuals receiving formal education. To boost this number, and encourage students to apply for higher education at Indian universities as well as abroad, the Bihar state government launched a student credit card scheme, which provides substantial monetary help to all such cardholders.

If you hail from Bihar and are looking to secure monetary help to meet any financial expenses associated with your higher education aspirations, you can opt for a Bihar student credit card yojana.

Understanding the Bihar Student Credit Card

Such credits cards are sponsored by the state government of Bihar and come with the following facilities:

1. Unsecured education loans of up to Rs.4 lakh can be availed through such cards.
2. Procured funds are subject to nominal interest rates, starting from 1% for female applicants and physically disabled students.
3. The repayment process of such loans begins after completion of the course, and the applicant secures a job.
4. In case you cannot repay your credit card debt partially or wholly, Mukhyamantri Nishchay Swayam Sahayata Bharata Yojana (MNSSBY) assumes the responsibility of loan repayment in the event of defaults.
5. All students opting for higher education can receive this student credit card, irrespective of the type of degree.

Advances through Bihar credit cards can be utilized to meet any expenses related to higher education, such as books, tuition fees, laptop purchases, etc. Nonetheless, only individuals satisfying the requisite criteria can avail benefits under this scheme.

Eligibility Criteria

1. Applicants should be a native resident of Bihar. 
2. Applicants should complete secondary education, and proof of the same through class 10th and 12th mark sheets has to be submitted.
3. Only individuals below the age of 25 years are eligible to qualify for student credit cards.
4. The family of an applicant should have a credible source of income, which has to be proved through submission of family income certificate or Form 16.
5. Certificate of acceptance into a registered university has to be furnished, and the education course must be completed.

Such a student credit card often provides significant benefits to Bihari students looking for funding sources to finance their higher education. However, a considerable limitation of the same is that such cards don’t promote savings among cardholders through reward points, a characteristic feature of standard credit cards.

Comparison to Standard Credit Cards

A standard card comes with several advantages that are not available under a student credit card offered by the Bihar government.

Higher Spending Limit

Regular unsecured credit cards often have a higher spending limit when compared to a student credit card, which can be utilized for any purchases, with repayment at a later date. Also, such credit limits are subject to periodic renewal, upon completion of one billing cycle.

Extensive Rewards Points

Each transaction processed through a credit card generates substantial reward points, which can be redeemed at a later date to avail discounts on future purchases, in the form of cash backs and vouchers, or to make payments towards the monthly credit card bill statement. You can use a credit card wisely to earn such high reward points and thereby boost your yearly savings significantly.

Improved Credit Score

Unlike credit cards offered by MNSSBY to students, regular credit cards have a significant impact on the credit score of an individual. Reading your credit card statement correctly and repaying all dues accordingly help cardholders’ increases their CIBIL score, labeling them as credible applicants. This increases the odds of loan approval in the future at attractive interest rates.

Bajaj Finserv RBL Bank SuperCard offered by Bajaj Finserv provides all the above-mentioned benefits on their credit card along with multiple other repayment-friendly benefits.

They also provide pre-approved offers which make the approval process quick and easy. Such offers are available on home loans, credit cards, business loans, etc. as well as on numerous other financial products. You can check your pre-approved offer by providing your name and phone number.

Thus, individuals can choose between student credit cards and standard cards, depending upon their requirement and repayment capability. The source of income through which repayment can be processed should be analyzed carefully, in this regard, along with the purpose of usage. While a student credit card can prove to be more advantageous for individuals pursuing higher education, regular cards come with several other benefits that help them channelize their annual savings rate.

Benefits of a Student Card

Given the literacy rate of Indians and the percentage of students opting for higher education, several state governments have launched funding schemes to ease the financial burden associated with pursuing higher education both in India and abroad. In this regard, the Bihar government established a student credit card scheme to ensure substantial funds are available to all native residents of Bihar aspiring for higher education.

Bihar Student Card Benefits:

1. Unsecured education loans of up to Rs.4 lakh is approved on such credit cards.
2. Nominal interest rates starting from 1% are levied on such loans.
3. Lenient repayment rules are levied.
4. Students pursuing higher education in technical, general or polytechnic degrees are eligible for such student credit cards.

Conclusion

Even though such cards are ideal for students having limited access to finances and looking for funding sources to cover the finances of the education, it does not come with the standard benefits of a typical credit card.

Regular credit cards such as Bajaj Finserv RBL Bank SuperCard offer high reward points on all transactions, which ensure adequate savings in the long run through the redemption of accrued points in the form of discounts and cash backs. Other benefits in the form of increased credit score and higher purchasing power are also associated with standard credit cards.

Consequently, individuals can choose to obtain either student credit cards or regular cards, depending upon their purpose of usage and repayment capability, and financial goals of the future.

DepositPhotos – student credit card

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