Educational Loan-To Provide Financial Support to Economically Weaker Students: High Court of Kerala

The main objective of educational loan scheme is to provide with an opportunity to economically weaker student to pursue their education with the financial support from the banks at affordable terms and conditions. This remarkable judgement was passed by High Court of Kerala in the case of Ms. Parvathy Udayan v. The South India Bank Ltd Represented by Its Managing Director, Head Office Mission Quarters, T.B. Roads, Thrissur [WA.No.378 OF 2021] by the Honorable Chief Justice Mr. S Manikumar & The Honorable Justice Shaji P.Chaly

The Mandamus Writ petition was filed by the respondent herein who was an applicant for Education Loan ordered the respondents/appellants to recall Exhibit P4 loan rejection letter and to consider the loan application in terms of Exhibit P8 loan scheme and grant educational loan to the petitioner for her B.Sc. Nursing course. The reason for rejecting the application before was that the petitioner had not secured the minimum of 80 % marks in the subjects in her 12th exams as stipulated by the bank’s norms on eligibility for educational loan.

Later the honorable court Going by Ext.P8 Scheme opinioned that “petitioner cannot be said to be ineligible for Educational Loan. It is also a matter to be considered by the Bank that she is undergoing Nursing Course, which is a professional undergraduate course and the Bank has to look into prospects of the said course, while considering her application. The financial position of the mother of petitioner cannot have any effect on determining the eligibility of the petitioner for Educational Loan

While Challenging the earlier judgment, appellants had filed the writ appeal on the following grounds that, “the admission was not based on any Common Entrance Test. Hence at best it could be treated as admission to the course in the Management Quota. The student borrower has no credit history and as such he is assumed to be creditworthy”

While going through the matter, Mr.K.K.John, learned counsel for the appellant/bank submitted that, “the case of the respondent would be considered as a special case for grant of educational loan.

The court was of the opinion that, “Though the learned counsel for the appellant made an attempt to argue on the merits of this case, taking note of the above submission made by the learned counsel for the bank we are not inclined to advert to the same. The main object of educational loan scheme is that a meritorious student, economically weaker should be provided with an opportunity to pursue education with the financial support from the banks at affordable terms and conditions.”

The court disposed of the appeal directing the appellants that, “to consider the request of the respondent’s application for grant of educational loan for pursuing her B.Sc. Nursing course, as a special case and grant educational loan within a period of two weeks from the date of receipt of a copy of the judgment.”

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