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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
Mrs.Justice L.Victoria Gowri, J
S. Nimalan – Appellant
Versus
Zonal Manager, Indian Bank, Tirunelveli – Respondent
ORDER :
1. This Writ Petition is filed, to direct the respondents to disburse the education loan of Rs.7,26,000/- to the petitioner vide the application bearing No.2473739 and the representation dated 23.08.2024, by accepting third party guarantor.
2. Heard the learned counsels on either sides and carefully perused the materials available on record.
3. The petitioner got admission into the course, namely, Bachelor of Naturopathy Yogic Science, a professional course of medicine at Thangapazham Medical College, Vasudevanallur, Tenkasi District, a college affiliated to Dr.MGR Medical University, Chennai. The petitioner got selected through the admission process by the Government of Tamil Nadu conducted for the academic year 2023-2024 and got selected under the management quota on merit basis. The petitioner hailed from a lower middle class family and his father passed away before 3 years. Before joining the BNYS course at Thangapazham Medical College at Vasudevanallur, Tenkasi, he was informed that the course is eligible for education loan and subsidy sponsored by the Central Government, namely Central Sector Interest Subsidy Loan Scheme and the college ensured him that they would arrang
Educational loans must primarily benefit the student, and cannot be denied based on the co-applicant's credit score, as it contradicts the scheme's purpose.
CIBIL score of co-applicant cannot justify rejection of educational loan; banks must reconsider with eligible co-applicant.
Low CIBIL scores of co-borrowers cannot justify the denial of education loans when the applicant's repayment capacity is the primary consideration.
Educational loan eligibility under the Pradhan Mantri Vidyalaxmi Scheme is not contingent on passing all subjects before application.
The main legal point established in the judgment is the requirement for the respondent bank to consider the brochure that permitted the educational loan without security for the specific institution,....
The court emphasized the importance of adequate security and considered the peculiar facts and circumstances of the case in allowing the petitioner to make a fresh application for the education loan.
Court mandates bank to sanction educational loan upon verification of required academic marks.
Loan Sanction Delay - Court Directed to release remaining instalments of the sanctioned loan amount under ‘Education Loan Scheme’ of the NMDFC in favour of Writ petitioner/appellant for completion of....
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