K.P.STANLY Vs. STATE OF KERALA

JUDGEMENT

(1.) Dated this the 17th day of February 2020 Petitioner having taken the facility of an educational loan, in view of the incentives given by the bank to pay off within a period of one year from the date of passing out, has approached this court against the notice issued by the 2nd respondent, produced as Ext.P2 in W.P.(C).No.2497/2020 and Ext.P4 in W.P.(C).No.451/2020. The petitioner is unable to pay the payment and the interest charged by the bank since the interest rate of 14.6% is too exorbitant. A paltry amount of Rs.1,08,000/- was taken, now the amount has burgeoned to almost Rs.7 lakhs. A circular issued by the Reserve Bank of India indicates a lower interest in case the petitioner cannot repay the amount due to his peculiar circumstances.

(2.) Learned counsel for the bank submits that, the rate of interest for the educational loan is 15%, and is lesser in the instant case than that and therefore, this is an adherence of the RBI circular. The amount was increased only on account of default committed by the petitioner, for which, there cannot be any concession. Learned counsel for the bank on instructions submits that, the recovery steps can be deferred in case the petitioner opt to pay the outstanding amounts in seven monthly instalments.

(3.) Learned counsel for the petitioner submits that, his client is willing to pay the amount in seven instalments and requested that the coercive steps shall be kept in abeyance.