The Kerala High Court on Tuesday asked banks to adopt a humanitarian approach and observed that the Education Loan application submitted by a student could not be rejected due to a low CIBIL Score.
While hearing the case titled ‘Noel Paul Fredy v. State Bank of India & Anr’, Justice P.V. Kunhikrishnan gave this observation. “Students are the nation builders of tomorrow. They have to lead this country in the future. Simply because there is a low CIBIL score for a student, who is an applicant for an Education loan, I am of the considered opinion that the Education loan application ought not to have been rejected by Bank.”, Justice Kunhikrishnan added.
The petition was filed by a student who availed had two loans. One of his loans was written off by the bank, while one was overdue for Rs 16,667, leading to a low CIBIL score. As the student has landed a job in Oman, the counsels averred that the petitioner should now be able to clear the entire loan amount.
The court directed the respondents to disburse the amount of Rs.4,07,200/- to the College of the Petitioner.
“Here is a case where the petitioner obtained a job offer too. Banks may be hyper-technical, but a court of law can not ignore the ground realities,” the Court observed.