Bengal's Student Credit Card Success: 1 Lakh Sanctions Amid Bank Disputes

The Chief Minister, in a social media post, said that the state government's flagship scheme provides students education loan of up to Rs 10 lakh at a nominal interest rate, with the state government bearing the entire interest subvention/subsidy amount.

"Happy to share that under our student credit card scheme, the number of sanctioned cases has crossed today the landmark figure of 1,00,000. In this flagship scheme of our government, the students are provided an education loan up to Rs 10 lakh at a very nominal interest rate. The interest subvention/subsidy amount is entirely borne by the state government," the Chief Minister said in the social media post.

She said the scheme would continue to support young talents as they work towards their goals.

"Wish all our students a very prosperous future", the Chief Minister added.

The scheme was introduced on June 30, 2021, soon after Mamata Banerjee took office as Chief Minister for the third time following the assembly elections that year.

It had been one of her main campaign promises. The scheme offers financial assistance of up to Rs 10 lakh at a simple annual interest rate of four per cent for students pursuing higher studies in India or abroad. The full interest subsidy is borne by the state government.

There have, however, been several disputes between the state government and banks over its implementation. The state has often accused banks of hesitating to sanction and release loans, even though the government stands as the guarantor.

During quarterly meetings of the State Level Bankers' Committee in West Bengal, officials from the finance department have repeatedly alleged that some banks even sought collateral security despite the state government guarantee.

- IANS