Madras High Court decision on educational loan
Posted on: 18/Aug/2015 11:55:11 AM
Justice R. Subbaiah of the Madras High Court Bench in Madurai has mentioned that the very purpose of issuing education loans to academically rich but economically poor students would be defeated if banks were unyielding on supporting only half of the cost demanded by private colleges.
B.N. Subramanian of Nagercoil in Kanyakumari district claimed that he completed his Bachelor of Engineering course with a Cumulative Grade Point Average of 8.7 and gained admission in M.Tech programme offered by a reputed private university in Chennai.
Though the university demanded Rs.4.7 lakh towards the course fee, the bank refused to sanction the loan for such a huge amount on the ground that it was excessive and not in assonance with the fees fixed by a government constituted committee.
The bank in a counter affidavit filed before the court mentioned that it could sanction only Rs.1.7 lakh at the rate of Rs.30,000 towards tuition fee for every semester and Rs.25,000 towards annual hostel fee since that was the amount private colleges were entitled to collect as per government norms.
Not agreeing to this, the judge ordered that the present writ petitioner be granted loan on the basis of fee estimation certificate issued by the university.
