The Madras High Court bench here has observed that banks could not reject education loan because the applicant was the son of an advocate or he had failed in the exams.
Directing the Canara Bank of Sankarapuram at Karaikudi to process the application of the son of an advocate and provide loan, Justice N Kirubakaran said the bank could not reject it because the student's father was an advocate.
The advocate, V K Peter Rajan, in his petition, alleged that the bank declined loan for his son, an engineering student, citing that he may not repay the loan as he was the son of an advocate. He had applied for Rs 3.6 lakh as loan.
"The bank is granting educational loan subject to the rules and regulations and if there is failure on repayment of loan it is always open to them to take recovery action," the court said.
The bank's counsel argued the applicant studying in a private engineering college, had failed in one paper in his second year. So, he could not be provided loan.
Rejecting the contentions, the judge said it is not fair on the part of the bank to reject the application citing his failure in exam.
The Judge said the compartmental system in engineering colleges permits the students to clear their arrear papers any time and directed the manager to process the boy's application in ten days.
