Some of the banks here ask for PAN cards of student (applicant) and parent (co-borrower) who apply for education loan this year.
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 found it difficult to contact the borrower of education loan after completion of studies and because of 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.
Both should have the card at the time of applying for the loan. Some banks ask for the card at a later stage.
The banks should take more measures to create awareness among students on the need for PAN card. They would be able to get the card in a couple of weeks.
Students would approach banks for education loans only after the final examination results are released and after applying for admission in a college. Those who do not have the card and plan to go in for education loan should apply for PAN card now, he said.