Madras HC raps bank over refusal to grant loan to student

The Madras High Court came down heavily on a nationalised bank in Tiruvannamalai district for declining to grant loan to a student of a Siddha medical college here on the grounds that the institution did not "maintain placement records of outgoing students".

When the petition filed by S Naveen came up yesterday, Justice S Vaidyanathan observed that it was very unfortunate that the future of the student was at stake, due to the flimsy reasons given by the Arani branch of the Indian Bank.

Pulling up the bank officials, the judge said, "Though a cost of Rs 1 lakh should have been imposed on the officials, who have rejected the loan, taking note of the fact that henceforth, the bank would act in terms of the revised IBA Model Educational Loan Scheme, 2015, no cost is imposed."
For further payment of the fees, the student had in 2016 made an application to the bank, which rejected his plea on the ground that the college was not "maintaining placement records of its outgoing students."