Rs 63.9 lakh education loan: Madras HC disposes of student’s plea

It also held that an education loan of more than Rs 4 lakh cannot be demanded as a right without any security.

Justice S Vaidyanathan, who disposed the plea, said, “The petitioner, as a matter of right, cannot demand a higher amount as loan without any security and that sanction of loan is covered by the guidelines issued by the bank for availing education loan.” The petitioner R Sanskrit had submitted that the application for the loan was made in 2016 but the bank had not processed it. The college management had also allocated a scholarship of Rs 6 lakh. But she was not permitted to attend classes and attendance has not been marked.

The petitioner also did not have sufficient attendance in the first year and therefore she cannot be permitted to enter the second year, unless the first-year course is redone by her after paying the balance fees, the counsel submitted.

The bank said educational loans are sanctioned to eligible students, wherein, for up to Rs 4 lakh, no security is required and beyond it, conditions are stipulated for the student and the parents.

However, the judge, on accounting for the fact that the student hails from a poor family and the loan application is pending, said, “The loan application may be processed by the concerned branch of Indian Bank with respect to each academic year and the eligible amount may be sanctioned by the bank to the petitioner in order to enable her to pay the fees to the college. The bank will have to necessarily process the application form as per the guidelines fixed and sanction the education loan as per the scheme.”

The judge then directed the college to permit the student to attend classes for the first year, as the petitioner will have to redo the course and the balance amount shall be paid on receipt of loan.