'Student loan can't be rejected on low job prospect grounds'

The Madurai Bench of the Madras High court has ruled that an educational loan cannot be rejected merely on the grounds that the employment opportunity was poor and there was stiff competition during the campus interviews.
The ruling was given by Justice K.Ravichandra Babu while disposing a petition filed by B.Tamilselvan who sought to quash the order of the manager of the State bank of India"s Narayanapuram Branch rejecting the loan application for his son.
"The Bank is not justified when it gives the ground that the student does not have employment opportunity and there is stiff competition for jobs," the judge said.

The petitioner, whose son is pursuing B.E civil engineering course at a private college in this district, had sought a loan to the tune of Rs.3.10 lakh from the State bank of India branch.
The Judge observed there could not be any bar for granting educational loan which was repayable with interest.
Besides the petitioner had given sureties, it was noted.
The objective of providing education loan was to help people without money pursue their education and "that would be defeated" if loan was not given, the Judge said, asking the bank to consider the loan application if that student was otherwise eligible.