BRANCH MANAGER INDIAN OVERSEAS BANK Vs. A RAVI

JUDGEMENT

(1.) This Writ Appeal is filed against the Order dated 20.6.2013 made in W.P. No. 923/2013, wherein the First Respondent has challenged the reply sent by the Appellant-Bank dated 15.9.2012 and prayed for a direction to the Appellant-Bank to sanction Educational Loan for a sum of Rs. 1,88,000/- as per the existing Educational Loan Scheme to the son of the First Respondent within the stipulated time. The said Writ Petition was allowed by the learned Single Judge of this Court by taking note of the fact that the son of the First Respondent had secured 59% marks and got admission in B.E. Degree course. The contention of the Bank was that the candidates, who have secured 60% marks and above alone are eligible to get Education Loan as they alone can be treated as meritorious candidates.

(2.) Heard the learned Counsel for the Appellant and respective Counsel for Respondents 1 & 2.

(3.) The Government of India launched the scheme of providing Educational Loans to the economically disadvantaged people, through Nationalised Banks. Sanction of Educational Loan is not free, but it is repayable with interest at a later point of time, of course, at reduced rate of interest. The whole idea behind the scheme is to finance the economically disadvantaged people in their educational career. It is a social commitment for the upliftment of weaker, vulnerable and other sections of the society. It is a social welfare measure. In a way, it is some sort of social banking. The Public Sector Banks and other financial institutions must bear in the policy in mind while sanctioning Educational Loans covering the genuine, reasonable and justified educational expenses and relieve the students and their parents from pressing financial crisis.