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Judgment
T.R.Ravi, J
The writ petition has been filed challenging the rejection of an education loan applied for by the petitioner. In Ext.P8, the application has been
rejected for 3 reasons viz; (i) non-submission of necessary documents like passing entrance examination and interview (ii) proof regarding capacity to pay the margin money for the tuition fee every year to the satisfaction of the Bank (iii) that the entire amount cannot be disbursed in one lot and it should only be on a pro-rata basis, which was not acceptable to the applicants. The petitioner submits that the amount of loan sought for is only ₹7
lakhs and that they have no objection in the Bank disbursing the loan amount on a pro-rata basis. It is further submitted that they are also willing to give collateral security to the satisfaction of the Bank.
Even though a detailed counter affidavit has been filed by the Bank, I am not going into the merits of the contentions since the petitioner has offered
to secure the loan with collateral security as well. The counsel for the Bank on instructions submits that if there is sufficient collateral security, there should be no problem for the Bank to advance the education loan.
In the above circumstances, the writ petition is disposed of directing the 1st respondent to reconsider the loan application submitted by the petitioner along with the collateral security that is being offered by the petitioner/or on his behalf and on the basis of the submission of the petitioner that they are willing to accept the loan on a pro-rata basis. Necessary action shall be taken within one month from the date of receipt of a copy of this judgment.