Ratios
a. While considering the sanctioning of education loan, the loan obtained by the other members of the family or their credit history should not be considered.
b. Education loan are to be considered by the bank independent of other commercial loan obtained by the other family members of the student.

1. Both the Writ Petitions are filed praying to issue a Writ of Mandamus directing the first respondent to issue the educational loan application sought for by the respective petitioners for pursuing their Bachelor Degree in Engineering at Veltech Hi-tech Engineering College, Avadi, Chennai, as per the representation submitted on 30.6.2010.

2. Petitioners in both the writ petitions are sisters. The relief sought for in both the writ petitions are one and the same. Hence, both the writ petitions are taken up together for disposal.

3. The grievance of the two petitioners is that the first respondent bank is refusing to issue the education loan application in spite of representation to the concerned Bank Manager. The petitioners father has obtained no due certificate from all other banks in the place of residence. In respect of one bank where the father has taken a loan for poultry farm, the loan amount has been indicated. Since, the loan sought for in the present writ petitions is for educational purpose, the first respondent bank should consider the petitioners claim as they have not taken any education loan from any other bank. The denial of giving application and indirectly refusing to grant the education loan is arbitrary. The petitioners claim is that they are eligible for education loan as they satisfy all other requirement.

4. A counter-affidavit has been filed by the first respondent bank stating as follows:-

"I respectfully submit that it is true to state that the petitioner approached the respondent herein for pursuing for 3rd year Engineering Course. As per the norms governing the Educational Loan, the petitioner was directed to produce NOC from the other Banks. Accordingly the petitioner produced duly filled up NOC application. It is seen from the same, the petitioners father availed Poultry loan facilities from Indian Bank at Gudiyatham, and as on 06-01-2010 his liability with Bank is Rs.3,57,168/-. In view of the said liability to the Joint Borrower the respondent Bank instructed the petitioner to produce N.O.C. from Indian Bank for educational loan. The said act of the respondent bank is well within the ambit of the policy of the Government. As per the new norms, the applicant as well as the coobligant has to file an affidavit to that effect no loan facilities availed from any other bank. Hence, it is crystal clear that educational loan is not an automatic, it must be routed through the method enshrined in the policy of the Government. Hence, the question of violation of Article 14, 15 and 21 of the Constitution of India does not arise for consideration. The petition deserves no merits and as such the same is liable to be dismissed."

The plea of the first respondent stems from a misconception of the Government policy to extend education loan to deserving students.

5. The Government considering the importance of education and its pivotal role in human resource development and to drive the economic growth of the country has formulated the Model Educational Loan Scheme as early as in the year 2001. The Reserve Bank of India has also issued circular No.RPCD.PLNFS.BC.NO.83/06.12.05/2000-01 dated April 28, 2001 together with certain modifications suggested by the Government of India. This was based on the Honble Financial Ministers Budget Speech in the year 2004-2005. The educational loan is being extended by all Nationalised Banks and the Government of India has impressed upon the banks to extend facility to deserving/meritorious students to avail educational loan on certain affordable terms for pursuing higher education in India and abroad. The basis for introducing the scheme and the objectives is as follows:-

"1. INTRODUCTION:

Education is central to the Human Resources Development and empowerment in any country.

National and State level policies are framed to ensure that the basic need of the population is met through appropriate public and private sector initiatives. While government endeavour to provide