Friday, May 14, 2010

Banks can't deny loan to management quota students - High Court

HC: Banks can't deny loan to management quota students

Banks must extend educational loans to engineering students admitted under management quota also, the Madras High Court has ruled.

"Once the eligibility for admission is established and a candidate is selected through any one of the mode of selection permitted by the monitoring committee, it is not open to the bank to refuse loan facility to a deserving candidate," Justice N Paul Vasanthakumar said, passing orders on a petition filed by a student.

The student, S Saran Kumar, said in his petition that the Puducherry branch of the Karur Vysya Bank rejected his loan application on the ground that he had got admission under the management quota and not through the single window selection. Saran Kumar had got admission in the MRK Institute of Technology, a self-financing institution at Kattumannarkoil, for BE in electronics and communication in 2008-09.

After paying the first semester fee from his own pocket, the student approached the bank for an educational loan of Rs 3.4 lakh. Slamming the bank's rejection order, the student contended that the RBI-framed scheme for sanction of loan did not bar loans to students admitted under management quota. The eligibility criteria for the Loan Scheme were the nationality of the student, admission mode, quantum of payment,
he said.


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