BSCC Loan Repayment Exemptions & Extensions

The BSCC loan repayment exemptions and extensions are applicable if you cannot secure employment post-moratorium. In special circumstances, you may be granted a moratorium extension due to long-term unemployment. Additionally, loans can be waived off if a serious financial crisis afflicts you due to prolonged unemployment. The BSCC has set down a structured repayment with a moratorium period to allow students enough time to find employment before starting loan repayments. The Bihar Student Credit Card , a flagship scheme launched under the Mukhyamantri Nishchay Swayam Sahayata Bhata Yojana (MNSSBY), was initiated for students in need of financial assistance. Under this scheme, you will get education loans of up to INR 4 lakh to support tuition fees, buying of books, hostel charges, and other academic expenses. However, understanding the terms of the repayment after a moratorium period and the available exemptions is very important in cases where you are unable to repay or need more time for repayment. In this guide, you will find all the information related to loan repayment, the moratorium extension process, and conditions under which students can postpone or apply for an exemption of loan repayment.

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Can I Get a BSCC Loan Repayment Extension?

As already mentioned, yes, you can get a BSCC loan repayment extension. The moratorium allows you to have some time to look for a job before having to start the repayment of your loans. The standard moratorium period involves either one year after the course completion or five years from the date of loan disbursement, whichever is earlier.  Additionally, if you are employed before the moratorium ends, then the loan repayment shall start right after you get employed. But in case you are unemployed after the moratorium period, you can go for one of the following, which are nothing but BSCC loan repayment exemption rules:

• Affidavit Submission: The affidavit will be submitted before the office of the district resident cum counseling every year in June and December.
• Request For Deferment Of Repayment: The affidavit acts as proof of one's unemployment whereby the EMI would be postponed until a job is secured.
• Extension of Moratorium Period: After reviewing the applications, DRCC may extend the moratorium period and/or make recommendations of other forms of relief for the student whereby they may restructure their loan or lower EMI payments.

How to Delay BSCC Loan Repayment?

There is a structured repayment plan for the BSCC loan to assist you in managing your educational loans effectively. You can delay the BSCC loan repayment only if you apply for a Moratorium Extension through the MNSSBY portal. Typically, this must be done 60 days prior to the repayment date. The BSCC loan repayment can be delayed during a Moratorium Period, which is a temporary suspension of loan payments, typically granted by the Bihar government, allowing the students availing the student loan to defer repayment for a specified time. The moratorium period extends either until one year after the course has been completed, providing students freedom from the liability of repayments, or five years from the date on which the loan has been disbursed, whichever comes earlier. It provides respite to the students from the immediate obligation of loan repayment.

In order to apply for the Moratorium Extension, you must first visit the MNSSBY portal (7nischay-yuvaupmission.bihar.gov.in) and log in using your BSCC applicant credentials. You are allowed to apply for a moratorium extension through their login on the MNSSBY portal only if your loans are sanctioned and fully disbursed by BSEFCL. You must apply for the moratorium extension prior to 60 days of the date of loan repayment.

Note that you can repay the Bihar Student Credit Card loan amount only after the moratorium period. Including the moratorium period, the BSCC loan repayment period is 15 years from the date on which the first installment of the loan is disbursed. Additionally, repayment will be paused for a certain period if you do not secure employment during the BSCC Loan repayment. It will be resumed after you find employment. The BSCC loan can be repaid through cheques, Demand Draft (DD), Electronic Clearing System (ECS), National Automated Clearing House (NACH), or any other approved payment method.

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Step-by-Step BSCC Loan Deferment Process

If you have been unemployed for a long time, you can apply for extra deferment. You should be able to produce supporting papers verifying their employment status. In the most severe conditions, students are entitled to loan restructuring, which changes either the EMI amounts or extends the repayment period.

• BSCC loan beneficiaries, whose loan was sanctioned and fully disbursed by BSEFCL, can apply for a Moratorium Extension by logging in to their MNSSBY portal.

• Open the MNSSBY web portal and sign in with your credentials and Captcha.

• Go to the moratorium extension request page by clicking on “Moratorium Extension.”

• Download the sample affidavit format from the page.

• Fill out the affidavit format and convert it into PDF format (size below 700 KB) and upload it.

• Tick the checkbox for the self-declaration indicating its correctness.

• Click Submit to complete the process.

• If the submission was successful, there will be a pop-up message: "You have successfully uploaded the affidavit."

It should be noted that the application for a moratorium extension must be submitted at least 60 days before the repayment date to prevent recovery actions from the financial institutions.

Eligibility Conditions for BSCC Loan Exemption

The Bihar government had announced a huge Waiver Policy for students under the BSCC loan repayment waiver for low-income students. As stated by Chief Minister Nitish Kumar, if beneficiaries are unable to repay the education loans because of financial hurdles, the government is left with no option but to waive the entire amount due against such loans.

• Students must meet the following requirements in support of loan waiver claims:
• Show that financial hardship has prevented the repayment of the loan.
• Provide the requisite documentation and verification.
• The waiver is applicable only for BSCC loans of up to INR 4 Lakhs.
• Cases where students had to discontinue their education for medical or financial emergencies may have the loan waived off.

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Special Provisions for BSCC Loan Waivers

Additionally, the Bihar Government has also introduced special provisions to ensure that deserving students are not burdened with an overwhelming loan amount:

• Restructuring of Loan Terms: Students may opt for extended repayment periods or reduced EMIs.
• Specific-Sector Waivers: Special waivers would be there for those pursuing public service, education, or rural development.
• Partial Loan Repayment: While the government helps the students, assistance can also be provided to those unable to reimburse loans even after employment.

BSCC Loan Repayment Process

The BSCC loan is sanctioned by Bihar State Education Finance Corporation Limited (BSEFCL) in collaboration with banks. The repayment structure has been designed in such a way that it appears feasible for the students to repay while taking care of loan recovery efforts.

The Starting Time for Repayment: In cases of loan amounts up to a particular amount of INR 400,000, it starts after one year from the date of completion of the course or five years from the date of disbursement of the loan, whichever is earlier. The following would be the Interest Rates during the repayment of the loans:

• General category students: 4% per annum.
• Girls, transgender, and disabled persons: 1% per annum.

BSCC Loan Repayment Methods

Payment can be made through Cheque, Demand Draft (DD), National Automated Clearing House (NACH), Electronic Clearing System (ECS), or any other approved methods. For the students to avail of the benefits of the BSCC scheme, they need to submit their application online using their Aadhaar number, if available, along with the PAN number and details of a bank account. The scheme aims to ensure that genuinely deserving students receive financial assistance without having to face the excessive burden of repaying huge amounts.

By understanding the BSCC loan repayment exemptions and extension policies, students can have a less stressful journey of clearing their loans and brightening their futures without financial strain. The BSCC scheme ensures that higher education is within reach of no individual due to lack of funds. The scheme provides remarkable relief to students who are experiencing economic challenges, thanks to the structured repayment strategy, moratorium period, and waiver choices.

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