Education Loan above 4 Lakh to be covered as per Bank Guidelines – In a big relief to encounter the higher Non performing Assets (NPA) under Education loan, Madras High Court has ruled that any individual can’t demand the Education loan of over Rs 4 lakh as their right, without any security, and that its sanction is covered by bank guidelines.
Madras courts stated that :
Justice S Vaidyanathan passed the order in favor of Indian Bank while disposing of a plea filed by R Sanskrit, seeking a direction to the Pallikaranai branch of the Indian Bank for sanctioning an education loan of Rs 63.90 lakh towards the revised tuition fee for her MBBS course in a private medical college, Shri Sathya Sai Medical College & Research Institute. She had applied for the loan in 2016, but it was not processed by the bank. She had received Rs 6 lakh as scholarship for pursuing the medical course.
Judge said in the order to Bank that “The loan application may be processed by the concerned branch of Indian Bank with respect to each academic year and the eligible amount may be sanctioned to the petitioner in order to enable her to pay the fees to the college”.