PAN card mandatory for education loan

Updated on: Friday, May 18, 2012

Banks have started asking for PAN Card of both student and parent who apply for education loan.

According to the District Lead Bank Manager, J. Vanangamudi, in the case of students whose annual family income is Rs. 4.5 lakh or less, they are eligible for interest concessions for education loan. The PAN card will help ascertain the family income. It will also help trace the student later in the case of default in repayment of loan.

V. Govindarao, vice-president of Coimbatore Consumer Cause, has said in a release that since banks find difficulty in contacting the borrower of education loan after completion of studies and further due to larger number of non-performing assets in education loans, some banks have started insisting on PAN card for the student and the co-borrower or guardian.

At the time of application of education loan both are expected to have PAN Card though some banks ask for it at a later stage.

The banks should try to educate and create awareness among the students about the benefit and need for Pan Card. PAN cards are now easily available within a few weeks time of applying.

Students who approach the banks for education loans after the final examination results should apply for PAN Card immediately to avail of the education loan.

PAN card mandatory for education loan

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