Banks should help students realise their dreams, says HC

STAFF REPORTER

MADURAI, SEPTEMBER 10, 2018 00:00 IST

Comes down heavily on ‘whimsical approach of banks’


Nationalised banks should assume larger social responsibility towards realisation of legitimate ambition of thousands of poor students who could otherwise ill afford to pursue higher education, observed the Madurai Bench of the Madras High Court on Friday.

The court was hearing the plea filed by a casual labourer who sought a direction to the Madurai branch of Andhra Bank to grant education loan to his daughter. Justice V. Parthiban directed the bank to consider the claim of the petitioner and sanction the loan within two weeks.

The court observed that grant of educational loan to aspiring students could not be perilously dependent on an whimsical approach of nationalised banks. The banks should not be allowed to fish out norms in order to deny educational loan to aspiring students.

“When the State has abdicated its primary responsibility in providing free education to its citizens and allowed a plethora of private players to run professional and other educational institutions, the mushrooming of such institutions has rendered education a costly affair. In such a scenario it is imperative on the part of nationalised banks to grant educational loans as far as possible to help poor students achieve their dream and goal,” Justice Parthiban said.

In the absence of any considered approach by the banks in alleviating the grievances of poor people who found it difficult to provide good education to their children, many deserving students would be denied of a chance to pursue higher education only because of their poverty and non-affordability. Such a situation would not advance the cause of a welfare State. Since the public had invested their money with the banks, the banks must subserve public interest as well, the court said.

The court was hearing the case of K. Alagarsamy of Madurai, a casual labourer, who sought a direction to the bank for the grant of Rs. 4.60 lakh as educational loan for his daughter A. Pavithra, currently pursuing B.Sc. Agriculture. When the petitioner approached the bank seeking the loan, he was denied it as he had defaulted on an agricultural loan obtained from the same bank earlier. The petitioner claimed that he had obtained a loan of Rs. 10,000 which was waived by the State government.