Though some banks are demanding PAN only at a later stage, after disbursing the loan, some leading banks like State Bank of India (SBI) might be insisting on PAN for even processing the educational loan application forms.
The
new eligibility criterion is being enforced due to difficulties faced
in contacting the borrower after he/she completes his/her studies.
There were many such cases in each bank, which had led to a rise in NPAs in educational loans, a bank source said.
“The
students, after graduation, might shift either to another country or
some other place in the country. So, it becomes difficult for us to
trace them based on the address given while obtaining the loan,” said a bank staff in charge of the loan section, seeking anonymity.
He
added that PAN would help track them, if they defaulted. That is, if
they apply for any other loans from banks, the default would be exposed
and could even prevent them from obtaining any loan in future, a bank
official said.
Mr N. Chandrasekar, AGM of Corporation Bank, told Deccan Chronicle, “PAN cards are necessary for anyone in their life.
Hence,
the students should acquire a PAN before joining college. If some banks
insist on PAN, they can readily produce the PAN details and process
their applications quickly, rather than waste another 15 days to get a PAN.”
A
bank source said circulars were issued to ensure PAN details were
collected from those who had already obtained loans, and also from those
applying for educational loans this year.
“We hope that when we insist on PAN cards, the NPA will come down after a couple of years as the students will have reason to repay the amount,” said the bank source.
source:tkbsen.com
source:tkbsen.com
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