Only three Student Credit Cards (SCC) have so far been issued in the state in over three months of its launch, putting a question mark on the scheme devised as part of chief minister's Nitish Kumar's "seven resolves".

The low numbers stand in stark contrast to the government's target to cover 5 lakh students during the current financial year, and to increase the number by one lakh every year subsequently to cover nine lakh students by 2020-21.

The credit card scheme was launched on October 2 to help youths wishing to pursue higher studies with an education loan of up to Rs 4 lakh. The state has given a guarantee to the banks to fully reimburse the principal and the interest in cases of default.

Officials of the education department, which is taking care of the scheme, are worried as only 6,111 credit card applications were submitted online in over three months.

They said altogether 5,849 applicants were called to the district registration and counselling centres, but just 2,171 of them turned up.

Subsequently, 877 applications were sent for third party verification of which 147 were recommended, but 45 were sent to commercial banks for approval. The banks approved three of them and the Student Credit Cards were issued to the beneficiaries.

State government officials are blaming the low numbers on banks, which have made PAN cards mandatory for "applicants" (students) and "co-applicants" (parents or guardian) for seeking a credit card.

"The target group for the scheme is people hailing from socially, educationally, economically weaker sections of the society, like small farmers, labourers, workers in the unorganised sectors. They are poor. They don't even know about a PAN card or how to get it made. Besides, getting a PAN card made is not an easy task for them," a senior education department official told The Telegraph.

Besides, the mindset of people, especially those living in the rural areas, is also a problem as they see taking loans as a bad thing and attach social stigma to it, the official added. The regulation asking for bank account details of parents or guardians and statement of the last six months to be submitted with applications was also coming up as a hurdle.

A high-level meeting was held on January 11 over the PAN card issue and to simplify the application format. Principal secretary, finance, Ravi Mittal, secretary, expenditure, Rahul Singh, principal secretary, education, R.K. Mahajan and officials from the State Level Bankers' Committee (SLBC) participated.

"The banks refused to lift the mandatory provision for PAN card of parents or guardians. We fail to understand why they are steadfast on it when the state government is giving 100 per cent guarantee on the loans," a senior education department official said.

SLBC officials shrugged off the accusations. "PAN card has been mandatory for all education loans and the rule is based on the directions of the Union finance ministry. It could not be tinkered with at the state level. The state government is free to approach the central government or the top managements of banks," said an official who did not want to be named.

The SLBC officials also asserted that they started getting the credit card applications only 15 days ago because the software needed by the state government for processing the applications was not ready.

"We also find it hilarious that the state government is okay with PAN card being made mandatory for the students taking loans, but wants it to be waived for the parents. If the student is getting his PAN card made, undoubtedly he could do so for his parents too," the SLBC official said.

Secretary, education, Jitendra Kumar Srivastava said the government is following the norms. "It is the mandate of banks that a PAN card is compulsory for education loans. Accordingly, we are following the provisions," he said.

Officer on special duty in the education department, Asghar Alam Khan, said: "There were teething troubles with the SCC scheme and all issues flagged by all the stakeholders were being looked into. The SCC numbers will register a sharp increase in a very short period."

The state is stressing on an awareness campaign for the credit card and providing PAN card enrolment facilities at district registration and consultation centres across Bihar.