The Madras High Court Bench here has come to the rescue of a daily wage labourer who was asked by a nationalised bank to furnish collateral security worth Rs. 4 lakh for granting education loan for his daughter to pursue an engineering course.
Disposing of a writ petition filed by Kumar of Melur taluk near here, Justice M. Venugopal said: “This court is of the opinion that for education loans up to Rs.4 lakh, the requirement is that the parents should be co-applicants and no security is required.” The judge directed officials of Indian Bank to reconsider the petitioner's application for education loan, “bearing in mind the plight of the petitioner and the educational interest, well being and career” of the latter’s daughter.
Mr. Justice Venugopal went on to state: “Education is a national wealth. Therefore, the respondent bank should follow the scheme and policy framed by the Central government and the benefit should reach the deserving and needy persons.
“If the respondents (Melur Branch Manager and Regional Manager of the bank) are permitted to adopt an approach that defeats the scheme introduced by the government, then such an act may infringe upon the spirit of Article 14 of the Constitution.”
