V RAJKUMAR Vs. DISTRICT COLLECTOR THENI DISTRICT

JUDGEMENT

(1.) The petitioner had sought for an educational loan for his son Mr.Sarvin Prabhu for pursuing his B.E.Degree Course. According to the petitioner, the entire course fees is about Rs.6,62,000/- for four years curriculum. By an order dated 19.02.2018, the second respondent herein had rejected the petitioner's application on the ground that the petitioner had defaulted THADCO loan and had become an N.P.A. The further reasoning given for the rejection was that the CIBIL score of the petitioner herein was not satisfactory and that the third party guarantee is also not credible.

(2.) This Court by an earlier order dated 10.04.2018 in W.P.(MD) No.5296 of 2018 had an occasion to deal with such a reasoning for rejection of educational loan and the relevant portion of the said order reads as under:

(3.) The above observations are self-explanatory and as such the second respondent - Bank may not be justified in rejecting the petitioner's request on the ground that the petitioner's CIBIL ratings and his earlier default is a bar for consideration for his son's educational loan.