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Education loan of over Rs 4 lakh cannot be demanded as right: HC

Press Trust of India  |  Chennai 

The has said an loan of more than Rs 4 lakh cannot be demanded as a right, without any security, and that its sanction is covered by guidelines.

Justice S Vaidyanathan passed the order recently, while disposing of a plea filed by R Sanskrit, seeking a direction to the Pallikaranai branch of the here, for sanctioning an loan of Rs 63.90 lakh towards the revised tuition fee for her MBBS course in a private medical college.

According to the petitioner, she had applied for the loan in 2016, but it was not processed by the

She had received Rs 6 lakh as scholarship for pursuing the medical course.

According to the for the & Research Institute, the petitioner was admitted to the institute in the 2016-2017 academic year.

She had given a joint declaration, along with her father, to pay the Rs 18,90,000 tuition fee as well as the annual hostel and application fees, the said.

However, she had failed to honour the commitment and stated that the educational loan was under process, the submitted.

"That apart, the petitioner did not have sufficient attendance in the first year and she cannot be permitted to enter the second year, unless the first-year course is redone by her, after paying the balance fee due to the college," the counsel said.

On its part, the bank submitted that under the guidelines for sanctioning educational loans, for an amount of up to Rs 4 lakh, no security was required, but beyond that, the conditions stipulated for sanctioning the loan would have to be followed.

In his order, the said it was stated that the petitioner hailed from a poor family and that her loan application was still pending.

The college might allow her to attend classes for the first year as she would have to redo the course again by giving an undertaking with regard to the payment of the balance fee and it should be paid on receipt of the loan from the bank, the said.

If the petitioner was unable to get the entire amount as loan, she might have to pay the balance from her personal funds, the said.

"The loan application may be processed by the concerned branch of with respect to each academic year and the eligible amount may be sanctioned to the petitioner in order to enable her to pay the fees to the college," the judge said.

The bank would have to process the application form as per the guidelines fixed and sanction the loan as per the scheme, he added.

"The petitioner, as a matter of right, cannot demand a higher amount as loan without any security and the sanction of the loan is covered by the guidelines issued by the bank for availing

"If the fee is not paid, the petitioner will not be permitted to sit for the examination," the judge said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 14 2018. 20:35 IST