1. The petitioner belonging to a financially backward family, who got admission to B.SC (Nursing) Course for the Academic Year 2013-2014 in Hill Side College of Nursing, Bangalore has approached the first respondent bank for an educational loan for 4 lakhs. However, her application was rejected vide Ext.P5 for the reason that she does not have 65% marks in the qualifying examination. The petitioner alleges that Ext.P5 order of rejection and Ext.P7 communication are arbitrary, illegal and violative of the rights guaranteed under Article 14 of the Constitution of India.

2. Respondents 1 and 2 countered that the loan could not be sanctioned by the first respondent due to the fact that the petitioner did not fall within the level of meritorious performance in the academic performance, as defined in Reserve Bank of India circular dated 28.4.2001. They maintained the stand that the petitioner secured admission not through Common Entrance Test. According to them, in area where Common Entrance Tests are not in place as per the Model Education Scheme, the bank can adopt appropriate criteria based on employability and reputation of the institution concerned. According to them, in