Education Loans should not be factored on student's liabilities: High Court

  

Kerala High Court recently mentioned that education loans should not be factored on student liabilities. The statement by the Court was directed towards Bank of India.

The court said this after a petition by a student who highlighted that she was a meritorious student and her parent's financial condition should not be assessed while considering repayment of education loan by her. 

The petition has been filed by a second-year student of Bachelor of Ayurveda, Medicine, and Surgery. The student filed the petition in Kerala High Court after her request for an education loan was declined by the bank. 

The student mentioned that she was declined an education loan by the bank since the bank mentioned that there was no proper evidence to show that the student could be able to pay the deficit fee.  

Similarly, the bank also highlighted that student's father wasn't generating any income from his business which made the loan inaccessible for her.

The petitioner has availed of a loan of ₹7,50,000 since she couldn't arrange the amount of money for the course.

Further, since the petitioner could not come up with any collateral security against the education loan, she asked for Rs. 7,50,000 which does not require a security deposit.  

The High Court observed that a bright student should not be deprived of the opportunity to pursue higher education only on the ground that the student does not have resources for the same. In its judgment, Kerala High Court said that the ability of parents to repay loans cannot be taken as a consideration for granting an education loan. 

Similarly, the Kerala High Court added that the parent's liability should not be taken into consideration and it should not be a stand mark for the bank while considering an application for an education loan. 

While allowing the petition, Justice P.B Suresh Kumar mentioned that the purpose of Education loan schemes as formulated by Banks as per the directions of the Reserve Bank of India is to ensure that students who are meritorious are not deprived of the opportunity for higher education due to lack of resources.  

SOURCE ; .timesnownews.com

Social media is bold. 

Social media is young.

Social media raises questions.

 Social media is not satisfied with an answer.

Social media looks at the big picture.

 Social media is interested in every detail.

social media is curious.

 Social media is free.

Social media is irreplaceable.

But never irrelevant.

Social media is you.

(With input from news agency language)

 If you like this story, share it with a friend!  

We are a non-profit organization. Help us financially to keep our journalism free from government and corporate pressure.