Patna: The Bihar State Education Finance Corporation (BSEFC) have begun lodging certificate case against the students, who took the loan under the state’s students credit card scheme but refused to repay loan amount despite getting the jobs.
Reports said that the corporation has registered certificate cases against 86 students, who declined repay the loan even after getting the job and also did not replied to the notices served on them for paying back the credit card loan in installments. “Notices have been issued to 2200 students so far,” said an officer, adding that the cases have been lodged with the concerned district auction officers.
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Officials said that they have begun identifying the students who have got jobs after completing their degree up on being financed under the CM Students Credit Card scheme by the BSEFC. “Notices are being sent to the students in phases. So far, loans have been given to 2,36,531 students in the state through student credit cards. These include 19219 students of Patna district,” the officer added.
Most of the employed students claimed that they were not able to pay the loan installments as they are paid very lowly. “I am waiting for getting suitable job, in which I will be able to get a respectable salary,” said a student.
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Scheme launched in October 2016
The Student Credit Card Scheme was launched in October 2016 to help economically weaker children in the state pursue higher education. After the reluctance of banks to give loans, the state government established BSEFC. From the year 2018, education loan was given through the corporation.
Interest from one year after degree
Students taking loan from student credit card are given the opportunity to find a job for one year after completing the degree. After this the loan amount has to be repaid. Girls are deemed to pay 1% annual interest on loan, while boys are supposed to pay 4% interest on the loan amount.
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The interest is counted after one year after completion of the students higher education study. Those with technical education get a loan of up to ₹4 lakh, those pursuing a regular course get a loan of up to ₹1.5 lakh and those pursuing a master’s course get a loan of up to ₹1 lakh. The fee amount is sent to the account of the concerned institution and the living and stationery expenses are sent to the child’s account.
What is certificate case?
Auction certificate case (certificate case) is done to recover the government money. If after taking the amount from any department, the concerned people or agency do not do the work or do not return the amount, then a certificate case is filed with the District Auction Letter Officer. The case is heard by the District Auction Officer by issuing a notice. If the concerned party does not deposit the amount, the order of body warrant, attachment seizure etc. is issued.
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What officers say?
After obtaining the degree by taking loan from the student credit card, the working youths are not repaying the loan. Such youths are being marked and notices are being sent. Certificate case is being filed for non-receipt of notice, said Kumari Neetu, assistant manager, BSEFC.
Students’ arguments
One Reyaz Uddin of Ghoswari area of Patha said he had taken loan to do BTech. “I got my degree in 2019. Then came Covid. I didn’t get a job. Right now I am looking for job. I am unable to get a government job. Private companies are paying in the range of ₹10-15 thousand. In such a situation, how to repay the loan? Trying to get a good job. I will repay the loan when I get a job,” he said.
Another student Priyanka Pandey said she has received the notice to repay the loan. “I am unaware about the process to repay the loan. Earlier, I was waiting for a good job. Now that I have managed to get one, I am looking for the assistance to repay the loan,” she added.
Provision for oath in case of inability to repay the loan
Students who are unable to repay the loan have to give an affidavit. Based on this, six months time is given. That means the loan has to be repaid after six months. According to the officials, no information has been given to the education department by the students, who have been given notices.
