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 :
Andhra Woman Techie Found Dead At Gachibowli Hostel; Police Recover Suicide Note
Hyderabad, Oct 6 (Maxim News): A 28-year-old software professional allegedly died by suicide at a hostel in Gachibowli on Monday night. The victim was identified as Bandela Maneesha, a native of Prakasam district in Andhra Pradesh. According to police, Maneesha was staying at Arya Elite Hostel in Gachibowli and was working for an IT company…
KTR Sends Legal Notice To Media House Over Passport Report
Hyderabad, Oct 6 (Maxim News): BRS working president KT Rama Rao issued a legal notice to Telugu vernacular newspaper “Eenadu,” objecting to a news report published on September 29, stating that a special court had ordered temporary seizure of his passport. He demanded the withdrawal of the report within 48 hours, the publication of a…
Passenger Detained At Hyderabad Airport After Bullet Found In Luggage
Hyderabad, Oct 6 (Maxim News): The security personnel at the immigration, detained a passenger after he was found in possession of a bullet in his luggage at the Rajiv Gandhi International Airport (RGIA) on Tuesday. Here To Join Us On WhatsApp As per information available, the bullet was found during routine security checks as the…
Sourav Ganguly Named Delhi Capitals Head Coach
Hyderabad, Oct. 6 (Maxim News): Former India captain Sourav Ganguly has been appointed head coach of Delhi Capitals ahead of the next Indian Premier League (IPL) season. Here To Join Us On WhatsApp The appointment marks his first formal coaching role with the franchise. Ganguly has been associated with Delhi Capitals since 2019. He initially…
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
