Patna: Chief minister Nitish Kumar on Thursday announced that the Bihar State Finance Corporation (BSFC) will provide Rs 4-lakh loan through student credit card (SCC) scheme to youths who want to pursue higher education after completing higher secondary or Plus Two board from financial year 2018-19.

"The state government has decided to provide SCC loans to youths through BSFC from the next financial year so that they don't have to make umpteen rounds of banks," Nitish said.

The announcement came in the stronghold of RJD chief Lalu Prasad's Madhepura on a day he was being produced in the CBI court in Ranchi for hearing on the quantum of punishment in one of the fodder scam cases in which he was convicted on December 23.

Nitish was addressing a public meeting at Gauripur in Singheshwar block of Madhepura as part of the third phase of his Vikas Karyon ki Samiksha Yatra to take stock of development works, including his seven resolves for a developed Bihar. He is visiting the same areas, which he had visited during his 2009 Vikas Yatra.

So far, the loans were disbursed by public sector banks on the recommendations of district registration and counselling centres (DRCC) opened by the state government. However, the banks adopted delaying tactics leading to a situation that just a few thousand students have managed to secure SCC loans against the target of 5 lakh in 2016-17 and 6 lakh in 2017-18.

This happened despite the fact that the state government gave a guarantee that the banks will fully reimburse the principle and the interest in cases of default. The issue was discussed at a state-level bankers' committee (SLBC) meeting and the banks were requested and reprimanded, but to no avail.

The chief minister also inaugurated and laid the foundation of a total of 1,565 development schemes worth Rs 621 crore on the occasion. Energy and prohibition, excise and registration minister Bijendra Prasad Yadav, SC and ST welfare minister Ramesh Rishi Deo, development commissioner Shishir Sinha, director-general of police Pramod Kumar Thakur and several other legislators and officials were present on the occasion.

The schemes included inauguration of Madhepura Rajkiya Polytechnic Institute and laying the foundation stone for the construction of BP Mandal Engineering College. "We have ensured funds and land for all institutions that are being made so that students don't have to go outside for studies," Nitish said.