Is it Possible to Get a Student Loan without a PAN Card?

Banks in India require applicants to submit a certain set of documents when applying for a loan. These documents help the bank know your financial history so that they can decide whether they can grant you a loan. A PAN Card is usually included in this set of documents. However, when you are a student and are looking to apply for a Student Loan, you might not have a PAN Card. Can you still apply for and get a loan? Read this blog post to know how you can get a Student Loan without a PAN Card in India.

Why is a PAN Card important in a loan application?

A PAN Card plays a crucial role when it comes to the loan approval process. It is important for the following reasons:

1. Identity Verification

Banks use the PAN Card to verify the applicant’s identity. It reduces the risk of fraudulent applications.

2. Tracking Financial History

The PAN Card can be used to track the applicant’s financial records and credit history, since a PAN Card is mandatory while investing in Mutual Funds and filing tax returns. This helps banks to easily evaluate repayment capacity and creditworthiness.

3. Government Rules

PAN Cards are often designated as mandatory by RBI and banks need to follow these rules to grant loans to applicants.

4. Transparency in Transactions

When you carry out large transactions for business or market investments, your PAN Card is closely analysed. This also holds true for loan disbursements.

Potential challenges of applying for a Student Loan without a PAN Card

Planning to get a Student Loan without a PAN Card?  You can get the loan, but it may come with certain challenges.

1. Limited Options

When you don’t present a PAN Card to the bank, you might get limited options as per your repayment capacity.

2. Longer Processing Time

Without a PAN Card, the loan sanction may take longer than usual. This delay can slow down the approval process and affect timely access to funds.

3. Higher Chances of Rejection

Some banks may consider a PAN Card mandatory and reject applications that do not include one. You can, however, present some additional documents to get approval, as requested by the bank.

4. Restricted Loan Amounts

When you decide to apply without a PAN Card, the loan amount you get might be limited as compared to applicants who provide a PAN Card.

Is it possible to get a Student Loan without a PAN Card?

The need for a PAN Card cannot be denied, as it is an important document for applying for loans. However, it is not mandatory to present a PAN Card- you can get a Student Loan even without it.

Tips for students for applying without a PAN Card

If you are planning to apply for a Student Loan without a PAN Card, here are some quick tips to make the process smoother:

1. Apply for a PAN Card at the earliest

Even if a PAN Card is not mandatory for your current loan application, it is essential for future financial activities. Remember to apply for it at the earliest, so there are no hassles in the future. 

2. Use a co-applicant

You can apply for the loan with a co-applicant, which includes your parents or guardians. This way, you can present their income documents and show their credit history to strengthen your application.

3. Keep alternate documents ready

As a student, if you don’t have documents like ITR (Income Tax Returns) or salary slips, you can always ask your co-applicant (e.g. your parents or guardian), to keep their ITR and income proof documents handy so that there are no delays during the loan approval process.

Documents required from co-applicants

ICICI Bank lets you apply for an Education Loan without your PAN Card. However, your co-applicant has to present the below documents:

For Salaried Co-Applicants

If your parent or guardian is a salaried employee, the Bank accepts the following documents:

• Recent salary slips

• Bank statements (usually for the last 6 months)

• Valid address proof (such as Aadhaar Card, Passport or Driving Licence).

For Self-Employed Co-Applicants

If your parent or guardian is self-employed, you can submit:

• Income Tax Returns (ITR)

• GST registration details

• Recent bank statements

• Proof of business or profession.

By reviewing these documents, ICICI Bank can assess income, repayment ability and overall financial standing, even in the absence of a PAN Card.

How does ICICI Bank support students who do not have a PAN Card?

ICICI Bank understands that students might not always have a PAN Card at the time of applying for a loan. Education should never be delayed due to documentation issues and that is why the Bank offers flexible solutions to ensure that students can still move forward with their application.

With ICICI Bank, you can:

• Apply for a Student Loan online without the need to provide a PAN Card

• You can also submit alternate documents, such as salary slips, ITR, GST details or bank statements on behalf of the co-applicant.

In simple words, while having a PAN Card simplifies the loan approval process, its absence does not prevent you from securing a loan with us.

Conclusion

So, is it possible to get a Student Loan without a PAN Card? Yes, it is. Although a PAN Card is one of the most commonly requested documents for loans, many banks, including ICICI Bank, allow students to apply with alternate documentation.

For disclaimer, Click Here.