The state government of Bihar along with public sector lender Central Bank of India has introduced a new home loan scheme for state government employees. The two entities have signed a memorandum of understanding (MoU) in this regard.

The scheme was launched by Chief Minister of state, Mr Nitish Kumar. He said that the scheme held out by Central Bank would benefit employees to build their homes.

He clarified that this loan scheme would run parallel to the government's own loan scheme. The government scheme offers home loans to employees for a maximum of Rs 7.5 lakh.

"I want to remove middlemen from all schemes and transfer government assistance to the bank accounts of beneficiaries. Scholarships to students should also be deposited into their accounts and they should be given the facility to withdraw money through ATMs," the CM said.

He also gave out a call to other lenders to come forward with schemes of their own to benefit people.