Big Decision: CIBIL Score not necessary for Education Loan
In a significant development aimed at facilitating the loan disbursement process, the Kerala High Court made a crucial ruling on Tuesday. It stated that banks should not reject education loan applications from students solely based on their poor CIBIL score.
During the hearing of the petition filed by the student, Kunhikrishnan, Justice P.V. expressed his view, stating,
“The bank should not reject the education loan application simply because the student has a low CIBIL score.”
Must be able to Repay Loan
The petitioner, a student, had taken two loans, one of which had an overdue amount of Rs 16,667, while the other loan was written off by the bank.
Consequently, the petitioner’s CIBIL score was negatively affected.
The petitioner’s counsel emphasized that without immediate funds, the petitioner would face difficulties.
The lawyers argued that the unsatisfactory credit score of the student’s parents should not be a valid reason to deny an educational loan.
They emphasized that the student’s repayment capacity would improve after completing education.
Additionally, the petitioner had received a job offer from a multinational company, ensuring the ability to repay the entire loan amount.
Arguments by the Defendants’ Lawyers
On the other hand, the respondents’ counsel argued against granting an interim order in favor of the relief sought by the petitioner, citing the Reserve Bank of India’s guidelines set forth by the Indian Banks’ Association.
They further contended that the Credit Information Companies Act, 2005, the Credit Information Companies Rules, 2006, and circulars issued by the State Bank of India prohibit loan disbursement in the present petitioner’s case.
Final Court Verdict
Despite these arguments, the court directed the respondents to immediately disburse an amount of Rs 4,07,200 to the petitioner’s college.
The court took into consideration the fact that the petitioner had received a job offer, stating that while banks may focus on technicalities, the court cannot ignore the ground reality.
Next Story :
-
Bird Flu In Abdullapurmet: 10,000 Chickens Killed
![Bird Flu In Abdullapurmet: 10,000 Chickens Killed]()
Abdullapurmet/Hyderabad, April 4 (Maxim News): A team of district veterinary and Animal Husbandry department officials killed 10,000 chickens infected with bird flu in a poultry farm in the Batasingaram village of Abdullapurmet mandal of Rangareddy district on Thursday.
-
AIMIM Finalize Mirza Riyaz Ul Hassan Effendi As MLC Candidate
![AIMIM Finalize Mirza Riyaz Ul Hassan Effendi As MLC Candidate]()
Hyderabad, April 4 (Maxim News): The AIMIM Party has finalized Mirza Riyaz Ul Hassan Effendi as the MLC candidate for Hyderabad Local Bodies. He won as the corporator of Noor Khan Bazar in 2009 and Dabir Pura in 2016. In 2019, AIMIM allowed him to become an MLC with an MLA quota. When the term of the…
-
Warangal Court Receives Hoax Bomb Threat Call
![Warangal Court Receives Hoax Bomb Threat Call]()
Warangal/Hyderabad, April 4 (Maxim News): Work at the Warangal court came to a grinding halt following a bomb threat here on Friday morning. Police teams assisted by a canine squad conducted searches at the court and declared that there was no bomb found.
-
Youth Arrested For Sharing Objectionable Video Involving Minors On Social Media
![Youth Arrested For Sharing Objectionable Video Involving Minors On Social Media]()
Siddipet/Hyderabad, April 4 (Maxim News): Siddipet Police arrested a youngster for sharing an Objectionable video involving a minor on a social media platform. The youth Putta Anil, a resident of Lakhsmi Nagar in Bhumpally mandal, is reportedly watching the video.
Now you can get the latest stories from Indtoday on Telegram every day. Click the link to subscribe. Click to follow Indtoday’s Facebook page and Twitter and Instagram. For all the latest Hyderabad News updates
