Poor marks not barrier for loan

Oct 21, 2012 |

chennai

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A poor academic record at the school level is not a barrier to getting educational loans, the Madras high court has held and directed Punjab National Bank, Ambur branch, to sanction educational loan within four weeks to B. Anitha, a nursing student whose application was rejected on the ground that her academic performance at the school level was poor.

The petitioner, Anitha of Vellore district, said that she belongs to Scheduled Caste and that her parents were illiterate agricultural labourers and that she was the first person in her family to pursue higher studies.

Anitha pointed out that she joined B.Sc (nursing) in Noorie College of Nursing in Kolar district in Karnataka and applied for education loan of `3.15 lakh. However, Punjab National Bank rejected her application on the ground that her academic performance in school was poor.

The judge said that it was not stated that the loan would be sanctioned only if the academic performance of the student was very good at the school level. On the other hand, the bank shall require the student to perform well on getting the loan.

“Dr B.R. Ambedkar obtained only 287 marks out of 750 in the matriculation exams and his educational need was taken care of by the King of Baroda on the ground that he belongs to scheduled caste,” the judge said.

The petitioner pleaded that her parents were agricultural labourers and from the economically weaker section and nobody in her family has pursued higher studies. These facts should be taken note of by the bank while sanctioning educational loans.

“The bank cannot deny educational loan on the ground that the academic record of the petitioner at the school level was very poor. There is no such provision in the circular of the bank that the loan can be sanctioned only if the academic performance of the student was very good at the school level,” the judge said.

The judge said the government of India has launched the educational loan scheme to help the economically weaker sections and not even a third party guarantee was required for disbursement of loan upto `4 lakh.

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