Edu loan of over `4L cannot be demanded as right: HC

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 Indian Bank here, for sanctioning an education 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 bank. She had received Rs 6 lakh as scholarship for pursuing the medical course.

According to the counsel for the Shri Sathya Sai Medical College & 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 counsel said.

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