PAN Card Mandatory for Education Loan

1. Easy to assess income – Every person who holds an account with any bank in India has to have a PAN Card (Permanent Account Number). Even for them to receive their salary or professional fees, they have to provide this particular Number. Since, it contains all the details of a person’s financial status, this card helps banks in assessing the applicant’s income and the income of their parents, guardian or co- borrower. It also prevents the applicant or his or her guardian from providing wrong income details to the bank.
2. Easy to trace borrowers – One of the major reasons why banks have made submitting of PAN Card compulsory is due to the increasing number of defaulters. Some students take an education loan from banks for the purpose of higher education in India or abroad and then default on their loans. After they pass from their colleges or universities, it becomes extremely difficult for banks to get in touch with them. If borrowers submit their PAN Card details to the banks, then it will become very easy for banks to trace them. If borrowers are aware of the fact that the banks will find them, they will try their best to pay off their entire loan on time.

Also, if the borrowers have submitted the PAN Card details while applying for an education loan and then defaulted, it will be very difficult for them to get another loan from any bank.

Implications of Non-Linking of PAN Card with Education Loan Account

If the PAN card is not linked with your education loan account, Tax Deducted at Source (TDS) will be recovered at 20% in case of a Fixed Deposit (FD), if the interest on FD exceeds Rs.10,000 per annum.

How to Link PAN Card to Education Loan Account Online?

The following steps will guide you on how to link your PAN card to your education loan account online:

1. Visit the official website of education loan documents required
2. Log in to your internet banking
3. Select PAN updation on the service request section
4. Enter your PAN card number, registered email ID, and date of birth
5. Click on the 'Submit' button

How to Link PAN Card to Education Loan Account Offline?

Let us have a look at the steps on how to link your PAN card to the education loan document required account offline:

1. Visit your nearest branch of Education Loan Documents Required and ask for the PAN card updation form
2. Fill out the form with all the required details such as your name, your bank account number, your mobile number, your address, etc.
3. Enclose the self-attested photocopy of your PAN card with the PAN card updation form
4. Verify all the details and submit the form to the bank

Once the bank verifies all your details, your PAN will be linked to your account within one to two working days.

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