Chennai: Bank penalised for denying education loan
The Madras HC on Friday said that it was very unfortunate that the future of the student was at stake due to flimsy reasons given by the bank.
Chennai: Pulling up the Indian Bank for denying educational loan to a meritorious student since the college he had applied for did not maintain 'placement records', the Madras high court on Friday said that it was very unfortunate that the future of the student was at stake due to flimsy reasons given by the bank.
When the writ petition filed by a Siddha Medical College student came up for hearing, Justice S.Vaidyanathan said that the petitioner is a bright student and his educational loan was rejected only on the ground that no subsequent record was furnished by the college. This cannot be a ground for rejection, he said.
The petitioner submitted that he had secured 1017 marks in the Higher Secondary Examination conducted by the State Board of Tamil Nadu for the academic year, 2014-2015.
He joined Bachelor of Siddha Medicine and Surgery in Sri Sai Ram Siddha Medical College and Research Centre, West Tambaram on allotment of seats made by the Director of Indian Medicine & Homeopathy Medical Science.
P.Paramasiva Doss, counsel for the petitioner, submitted that the student applied for an educational loan to the branch manager, Indian Bank, Arni branch, Tiruvannamalai district. Seven months later on October 18, 2016, bank informed him that his application was rejected on the ground that the college was not maintaining placement records of its outgoing students.
Counsel for the bank stated that the petitioner had not submitted his college's placement records for sanctioning education loan, much less the admission letter and bonafide student certificate from the college.
Stating that financial Institutions should lend a helping hand to needy students without finding some technical objections to reject the request for an education loan, Justice S.Vaidyanathan said that he was of the view that if the petitioner fulfils the guidelines stipulated by the Bank, his request shall be considered by the bank. He waived the cost of Rs.1 lakh to have been imposed on the officials who had rejected the loan.