Madras HC ruling on education loans

In a landmark judgment that could be a boon for penury-ridden students, the Madurai Bench of Madras High Court (HC) had ruled that the educational loans being provided by the banks would only be meant for meritorious and poor students, who could not afford higher studies due to poverty. The purpose of the educational loan scheme will be defeated if the banks were permitted to issue loans to rich students, said Mr Justice S Manikumar, while dismissing a writ petition filed by one Harish Babu. He further said students, who obtained average marks in their qualifying examinations and could afford to pay tuition fees cannot compel the banks to issue educational loans. If so, poor and meritorious students will be denied chance of getting financial assistance for their higher studies, he added. The court could not interfere into the affair as long as the managers of the banks took a fair decision on providing loans to the requisite students and in the case of the petitioner, who had scored 70 per cent marks in his examinations, his parents were in a good position to pay the fee, he said.

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