BSCC Loan Disbursement Process: Step-by-step Explanation

BSCC Loan Disbursement Process refers to the scheme where the approved loan amount is transferred from the bank to the student's bank account after all the necessary documentation and verification steps are completed. The Bihar Student Credit Card (BSCC) was announced under 7 Nichay (7 Commitment) for developing Bihar under the state government’s good governance program in 2016. It was part of Mukhyamantri Nishchay Swayam Sahayata Bhata Yojana (MNSSBY). This scheme has been introduced to aid students financially in affording higher education.
This Bihar Student Credit Card (BSCC) scheme allows applicants to get an education loan of up to INR 4 lakh at a very reduced interest rate. However, BSCC Loan Disbursement involves a systematic process involving various steps. In this article, we will delve into various steps of BSCC Loan Disbursement, what happens after Loan Disbursement, and lastly, we will look into the advantages of Loan Disbursement.

How is BSCC Loan Disbursed?

1. Bihar Student Credit Card Application

Visit the official BSCC portal, i.e, 7nishchay-yuvaupmission.bihar.gov.in

Look for the link/option for new registration and very carefully fill in your personal and educational information rightfully. The application form usually asks for various information like-

• Course details and college information.
• Household income
• Aadhar and PAN number
• You will also need important documentation like proof of identity, an admission letter, and the fee structure.
• While submitting the application form, take note of the application number for future reference.

1. Application Verification

After filling in and submitting your online application form, the students must visit the District Registration and Counselling Centre (DRCC) within 60 days of submitting the form. At DRCC, they will review the application. Here are the key steps:

• Marksheets and certificates of applicants of their 10th and 12th class.
• The identity card (Authorized by the government like PAN card, Aadhar card)
• The Residence certificate of the student.
• College Admission letter
• Proof of admission to a recognised education institution.
• The whole course structure and the fee structure of the applied course.
• The income documents are also required: the previous year’s income certificate, the previous two years’ income tax returns, and the last six years’ bank statements.
• Scholarship documentation
• Passport-size photos
• Bank account details, IFSC number, Bank name, and Branch name.

1. Loan Sanctioning and Approval

After the verification process is done, the application is sent to the relevant bank for loan approval. This involves:

• The bank assesses the applicant’s documentation and financial status.
• A loan sanctioning letter is generated upon approval.
• If the bank finds any discrepancies, they may ask for extra documents.

1. Documentation Verification and Biometric Confirmation.

Before the final loan disbursement happens, students must perform in-person document verification and biometric confirmation. This step is very crucial for the verification of identity and fraud prevention. Under this step, the student needs to do the following:

• The student must visit the assigned bank for final document checks.
• Provide original copies of authorized documents like Aadhar card, Admission letter, and financial statements.
• Then, you have to complete biometric authentication to verify your identity.

1. Loan Disbursement to Student’s College Account

Following the successful verification, here is how BSCC transfers the Bihar Credit Card Loan amount to colleges:

• The approved loan sum is directly transferred to the student’s institution after the compilation of the bank formalities of the bank. The student does not receive the loan amount on their private account; it is credited to the college or university’s account to pay the tuition fee and other associated costs. (If applicable, hostel/accommodation costs and other related expenditures may also be included.)
• The student then receives a notification confirming that the disbursement was successful.

BSCC Loan Disbursement Timeline

The timeline for the BSCC (Bihar Student Credit Card Scheme) loan disbursement relies on various factors, including document verification, bank processing times, and institutional endorsement. Below is a general timeline:

Note: The total estimated time for successfully obtaining the loan is about 1.5 to 2 months. The process duration may vary based on the case complexity.
Also Read: Bihar Student Credit Card Eligibility

What happens after BSCC Loan Approval?

Once the loan amount is transferred, Students have to make sure that they properly utilize the funds. Key considerations after disbursement include:

• Course Fee Payment: The disbursed funds are directly sent to the institution’s account at regular intervals. 
• Track Loan Installments: Through the BSCC (Bihar Student Credit Card Scheme) portal or with their bank, students can monitor instalment details.
• The Loan Repayment Strategy: The BSCC scheme offers a very flexible repayment. The students need to make the repayment of the loan after completing their course and getting a job. For instance, a student enrolled under the BSCC scheme and opted for the BSC course of 3 years, then for those 3 years, the student does not have to pay during the course duration. The repayment tenure is very lenient, and the applicant may take time from 5 to 15 years to repay the Loan.
• Academic Performance Tracking: In certain cases, a few banks may require students’ performance reports to keep a check on student’s ongoing studies.

The BSCC Loan Disbursement Process is a well-structured initiative designed for students aiming to pursue higher education. It not only ensures loans at lower interest rates but the steps in Bihar student credit card loan disbursement make sure that the application, verification and loan disbursement process are very smooth and transparent. It makes the whole process hassle-free. One of the important advantages of this Loan Disbursement Process is that funds are directly transferred to the institution, making it fraud-proof.