|Rising number of defaults in the education loans segment has made many banks to make Personal Account Number (PAN) card mandatory for applying for an education loan.
The submission of PAN details of the co-applicant (generally the parent/guardian) of the student has been made necessary for this year. Indian Bank's Association (IBA) has suggested though students do not need to have a PAN card during the course of their studies, but it is advised that they get one to make the process streamlined.
The largest lender of the country, SBI has already made it mandatory for both the applicant and co-applicant to furnish the PAN details, and asking existing borrowers to send their details.
PAN details would enable to ascertain the income level of the parents, and in case of default refer the case to CIBIL.