CHENNAI: The Madras High Court has held that there is no prohibition on the part of banks to sanction education loan to students admitted under the management quota to technical/professional courses.
Justice N. Paul Vasanthakumar also directed the Regional Manager of Karur Vysya Bank, Tiruchi, and the bank's Puducherry branch to sanction an education loan applied for by petitioner S. Saran Kumar, student of a private engineering college at Kattumannarkoil within two weeks.
The bank had refused to grant the student an education loan of Rs.3.40 lakh on the ground that he had been enrolled under the management quota and not through the State government's admission process. The petitioner, a resident of Puducherry, submitted that nowhere in the guidelines issued by the Indian Banks Association and approved by the Reserve Bank of India was it mentioned that students admitted under management quota were not eligible for loan.
The judge said, “If the stand taken by the respondents is accepted, no student admitted under the management quota in any private self-financing college will be in a position to get education loan, which will defeat the purpose for which the Government of India and Reserve Bank of India introduced the scheme.”