Is a PAN card mandatory for getting an education loan?
Yes, a PAN card is mandatory to get an education or any other loan.
In today's world, education is power. As a parent everyone wants their kids to get a good education and have an excellent career in the future.
Everyone dreams to get a good education and settle in his life. Nowadays getting higher education is becoming highly expensive. People who cannot pay the fees of educational institutions can apply for educational loans.
An education loan is a facility to provide financial aid to poor middle-class families for their children’s education.
Documents required for Education loan
1. Why PAN Is Important For Students/Individuals?
Many documents are required to apply for education loans. Many people ask if the PAN card is mandatory for getting an education loan? The answer is yes.
Earlier banks were not asking for PAN cards but recently it has been mandatory to have a PAN card when you're applying for education loans.
2. Why Pan is Mandatory for loan
Tax laws
To avoid tax evasion
It gives the transaction details of applicants.
It will provide the risk profile of the applicant.
To know your credit score.
To know the financial status of applicants.
To know Liabilities or any other bank loan.
To check CIBIL score.
The inclusion of the PAN card is mandatory for all Indian banks, as it helps them assess the financial status of applicants more easily.
Many students seek loans for higher education, but some end up defaulting on these loans. By requiring the PAN card, banks can better track and evaluate loan applicants.
Once they complete their education it is very difficult for banks to get in touch with them so if banks have the details of the PAN card they can stress them.
Even students will be aware that their PAN card and other documents are submitted to the bank so they will be strictly trying to pay off their entire loan on time.
Students who default on their student loans will not get loans again from any bank so they will be very aware of the education loan.
Is it possible to use an e-PAN card for educational loans?
Yes, You can Use an e-PAN card for educational loans. But it depends upon which bank you are applying to and how you are applying for the loan online or offline.
What is e-PAN?
The income Tav department Of India launched an e-PAN card. It is an electronic form of a PAN card. E-PAN cards will have a QR code that will help in making any financial transactions.
It is the same as a physical PAN card.
E-PAN Card Features
The following are a few of the features of an e-PAN card:
E-PAN cards will have a QR code that will help in making any financial transactions. OR code will provide your details for verification to banks or financial institutions.
All your demographic details, like your date of birth, name, and photograph, are available in your e-PAN card from the income tax department.
The IT department even provides your biometric details and signature through the e-PAN card.
How to apply for an e-PAN card.
E-PAN card can be downloaded using PAN application Acknowledgement No. Generated at the time of application.
Now new PAN applicants are getting both physical and e-PAN.
E-PAN you will receive on the registered email address.
E-PAN Card Documents
Here are the documents required for applying for an online PAN card:
Valid Aadhaar-linked mobile number to apply for a PAN card online.
E- KYC verification with signature and other information.
A scanned copy of your photograph with the signature across it to upload while applying for the new PAN card in the specified format and size.
E-PAN Card Fees
When you are applying for a PAN card online for the first time, it is entirely free of cost.
Do Students need a PAN card?
Yes, Students above 18 years they can get a PAN card.
The government of India made the PAN card compulsory for all individuals including students.
Students who are willing to take an education loan for further studies in India or abroad must have a PAN. It's mandatory for any kind of banking work.
