Nationalised banks cannot take unilateral decision and deny a student the education loan as per their whims and fancies, according to the Madras High Court. Banks have to sanction the full education loan sought by students, according to the Madurai Bench of Madras High Court.
In a path-breaking judgement Justices N Paul Vasantha Kumar and P Devadass directed the State Bank of India’s Bodinayakanur branch to sanction an education loan of over Rs 3 lakh to R Vijayapriya, a student doing her Masters in Computer Applications.
Vijayapriya, who got admission in the Bannari Amman Institute of Technology in Erode last year had applied for an education loan to the SBI for Rs 4,45,700, the course fee. She approached the bank since she had lost her father and was not in a position to raise the entire course fee all by herself. But the bank sanctioned a mere Rs 1,20,339.
Though she pleaded with the bank officials, it did not make any impact. Following this, Vijayapriya approached the Madurai Bench of the Madras High Court seeking disbursement of the full course fee. The contention of the student was that if nationalised banks followed such rigid stance the purpose behind the education loan scheme itself would be defeated. The judges directed the bank to sanction the balance of Rs 3,10,100 to Vijayapriya.
The court deducted Rs 1,35,600 towards “other expenses” quoted by the college before reaching the total course fee of Rs 4, 30,339. The judgment is expected to help thousands of professional college students to get the entire course fee as education loan.
The Madras High Court had ruled last year that students need not score exceptionally brilliant marks or grades in examinations to be eligible for education loan from banks.