Articles

Importance of PAN Card while applying for an Overseas Education Loan

by Rita Biswas Consultant

The PAN card is a unique 10 digit alpha numeric – number, that identifies you as an individual taxpayer, that is issued by the Indian Income Tax Department. This shows the card holder’s name, father’s name, date of birth, photograph and signature. This is helpful to apply for various loans, as the PAN card is linked to all your financial accounts. Therefore, it is used for proving your tax paying credit/history and application or planning for any finance and banking activities.

Talking of education loans to study within India and abroad, PAN card is mandatory even for the student/ co-applicant / Guarantor. The PAN card is a mandate document for the application of education loan for higher studies in India or abroad.

The PAN card being highly important tool to understand the financial history of debts, repayment patterns of previous loans, income status or any financial activity of the individual can act positively and negatively while applying for any kind of loan.

For studying abroad, there are provisions of two kinds of overseas education loans – secured (loan provided against a mortgage of immovable asset) and unsecured (loan provided without any security, based on the income and credit history of the applicant).

There are various nationalized banks, private banks and non-banking financial companies that provide assistance for overseas education loan process. While applying for educational loans, the amount to be paid for the tuition fees and other related fees are considered.

While you apply for an Educational Loan:

  • The PAN card of the main applicant (student) is required to login the education loan case.
  • For online loan application for abroad studies or by applying in person from the banks, the entire process would start from entering the PAN as your identification card itself, hence students cannot skip the PAN card.
  •  For any transaction of Rs. 50,000 and above, PAN Card submission is compulsory. Here, the amount of overseas education loan is definitely higher, PAN is anyway required.
  • In case the student has a Minor PAN Card, it needs to be converted to an Adult PAN Card before applying for the loan.
  • The loan amount is transferred to the loan account opened on the name of the student only. (For any banking account, a PAN Card is required)
  • Through PAN card only, the credit history is maintained and the same is reflected in your CIBIL/ credit score. It will help the student to avail better credit limits in future for any financial requirements in any aspects like car loan, home loan, business loan and even further educational loan for professional courses, without being dependant on parent/guardian again.

Though online PAN application process is easy, but students should consider taking help from agents or consultants and chartered accounting firms for application of PAN card, to avoid any mistakes, delays and errors while applying. 

Hence, submission of PAN card of students is an optimistic aspect to ensure future financial loans if required, without dependency on parents/ guardians.

Read more:

Clearing myths before getting an Overseas Education Loan

Criteria other than the CIBIL Score evaluated for Overseas Education Loans


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About Rita Biswas Innovator   Consultant

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Joined APSense since, December 19th, 2018, From Nagpur, India.

Created on Jul 18th 2019 03:05. Viewed 252 times.

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