Narmadha Devi vs The Branch Manager, State Bank of India

P. Jyothimani, J.—The writ petitioner, who belongs to Schedule Caste community and whose father passed away in the year 2004, after completing her XII standard examination in the year 2006 in which she has obtained 61% of marks, has completed her B.Sc., degree in information technology in the year 2009 with 87% of marks. She applied for diploma in the teacher training course for the year 2009-2011 at Maharishi Vidhya Mandir Teacher Training Institute, Madurai and she has also joined in the said institute, in which the tuition fee prescribed is stated to be Rs. 1,30,000/- for two years. It is thereafter, the petitioner approached the respondent bank for sanction of educational loan and an application was also sent to that effect on 29.07.2009 in person. It is stated that the petitioner is having a joint account in the respondent bank and after receipt of the application, the bank has not considered the same. Hence the petitioner has subsequently sent another application on 20.01.2010. Since the said applications were not considered by the respondent bank, the petitioner has filed the present writ petition for a direction against the respondent bank to consider the representation of the petitioner dated 29.07.2009 for the purpose of grant of educational loan.

The learned Counsel for the respondent bank on instructions would submit that after the application was received, the petitioner was informed by a communication dated 20.02.2010 to furnish certain particulars including as to whether the institution which she has joined is recognised by NCTE, the fees of Rs. 30,000/- per annum appear to be on the higher side as normal fees fixed by the Government is Rs. 5,000/- and for consent as to whether the mess bill to be paid subject to the limit of Rs. 25,000/- per academic year.

It appears that after the said communication, the petitioner has appeared in person before the respondent bank, who was directed to make a fresh application and application form has also been given. Accordingly, the petitioner has also made an application on 01.03.2010. The learned Counsel for the respondent bank would submit that the application will be considered on merits for the purpose of sanctioning of loan.

The learned Counsel for the petitioner submits that in a series of judgments, as far as the fixation of college fees to an extent of Rs. 1,30,000/- instead of Rs. 5,000/- as it is done by the communication dated 20.02.2010, this Court has already held that the Government has not fixed any fees for Diploma in teacher training and therefore, such reduction of the amount to Rs. 5,000/- is not permissible. Therefore, the learned Counsel for the petitioner submits that such judicial precedent should be taken note of while granting such sanction.

The law is well settled as far as grant of educational loan is concerned. The banks are not granting loan as a gratuitous one. The loans are granted subject to repayment and on the bank having satisfied about the capability of the persons who are repaying the amount on a future dates. In fact there are numerous conditions like that of joint account to be opened in the bank and so on. Granting of educational loan is the best welfare policy of the Government in uplifting the downtrodden people to educate.

In such view of the matter, the banks are expected to grant educational loan, of course subject to the limit for which the persons are entitled to and subject to the security have been obtained for repayment of the loan. It is brought to the notice of this Court that as per the guidelines of the Reserve Bank of India, for granting educational loan upto Rs. 4,00,000/- there is no security is required.

Be that as it may, in such circumstances, the writ petition is disposed of with a direction against the respondent bank to consider the application submitted by the petitioner on 01.03.2010 and pass orders in respect of granting educational loan, within a period of four weeks from the date of receipt of a copy of this order. Consequently, the connected miscellaneous petition is closed. No costs.