Sakshi Sinha vs The Bank Of Baroda & Ors.

Date : 18-08-2026

In the present case, the grievance of the petitioner is that she is an economically weaker student and had availed an educational loan for pursuing a two-year M.B.A. course (Management Course from ICFAI, Bengaluru) for the session 2008–2010. The loan was sanctioned before 31.03.2009 and, therefore, she claims to be covered under the Central Government Scheme for interest subsidy for the period up to 31.12.2013.

The case of the petitioner is that she has already paid the entire interest along with the principal amount, but despite being eligible under the scheme, the benefit of full interest subsidy has not been extended to her. According to the petitioner, an amount of Rs. 3,93,410/- towards interest is liable to be refunded/adjusted in her favour. It has further been contended that similarly situated students have been granted the benefit of full interest subsidy and denial of the same to the petitioner is arbitrary and illegal. The petitioner relied on the judgment passed in C.W.J.C. No. 3847 of 2015 and analogous cases, which has been affirmed in L.P.A. No. 1288 of 2017 as well as S.L.P. No. 2360 of 2018.

On the other hand, learned counsel appearing on behalf of the respondents submits that the claim of the petitioner would depend upon fulfillment of the conditions of the scheme and the same is required to be verified from the records.

Heard learned counsel for the petitioner as well as learned counsel for the Bank and the Union of India. Perused the record.

There is no dispute that the petitioner had taken an educational loan prior to 31.03.2009 for pursuing technical/professional education and claims to fall under the category of economically weaker section. If the petitioner is covered under the scheme of the Central Government, she would be entitled to the benefit of interest subsidy for the relevant period, i.e., up to 31.12.2013. Merely because the petitioner has already paid the interest amount would not disentitle her from claiming the benefit under the scheme, and such amount is required to be either refunded or adjusted, in accordance with law.

In view of the matter, the respondent Bank is directed to examine the case of the petitioner in the light of the Central Government Scheme as well as the judgment passed in C.W.J.C. No. 3847 of 2015 and analogous cases, as affirmed in L.P.A. No. 1288 of 2017 and S.L.P. No. 2360 of 2018, and take appropriate action with regard to refund/adjustment of the interest amount claimed by the petitioner.

It goes without saying that if the petitioner is found entitled under the scheme, the benefit of interest subsidy shall be extended to her and necessary amount shall be refunded or adjusted accordingly.

Let this order be complied by the Bank within a period of eight weeks from the date of receipt/production of a copy of this order.

With the aforesaid observations and directions, the writ petition stands disposed of.