Repay education loan to bank with interest, court directs applicant

Chennai: A city civil court has directed a youth and his family members to repay an educational loan received by the youth for pursing engineering course, along with an interest of Rs 2.60 lakh, to a nationalised bank.

In the petition, Chief Manager, Indian Bank, Anna Nagar Branch, submitted that the student represented by his father, P. Ramachandran, had approached him for financial help in 2007 for pursing BE (IT), in a  private engineering college here. The bank sanctioned an educational loan of Rs 2.60 lakh.

The applicants had accepted the terms and conditions and Ramachandran executed promissory note on November 29, 2007 for the loan amount agreeing to repay the amount with an interest of 12.5 per cent. They had agreed to repay the amount in 60 equated monthly instalments after a holiday period of 60 months from the first date of disposal of loan amount or immediately after the student starts earning after completing the course. The student’s mother stood as guarantor. After obtaining the loan, they failed to repay in spite of repeated reminders.

Meanwhile, the student became a major. The bank issued notice to the trio on July 4, 2015. Paper publication was also issued. As there was no reply, the Chief Manager filed the suit last year seeking direction to them to pay '4.65 lakh,  including Rs 2.60 lakh interest @12.50 per cent per annum as on date. The three remained absent.

The  XI Assistant Judge, City Civil Court, K. Ganesan, said the Chief Manager has proved the claim by way of oral and documentary evidence. No contra evidence was let in by the applicants to disprove the bank’s claim. Hence, the Chief Manager is entitled for the suit claim of Rs 4.65 lakh, including interest of Rs 2.60 lakh.