The Madras High Court Bench here has directed State Bank of Travancore to consider a mechanical engineer’s plea to waive interest levied on an education loan of Rs. 1.19 lakh availed by him to pursue engineering in 2006.
Disposing of a writ petition filed by the engineer, T. Jerin of Kanyakumari district, Justice M. Venugopal directed the Chief Manager at the regional office of the bank in Nagercoil to consider a representation made by the petitioner on April 7 last.
The judge made it clear that the engineer’s plea for waiver should be considered “with a fair, free, open and unbiased mind” and an appropriate decision should be taken on merits, by adhering to principles of natural justice, within four weeks.
Mr. Justice Venugopal said he was issuing such a direction to the bank officials in view of the petitioner’s claim that he belonged to an economically weaker section of society and his father’s annual income was hardly Rs. 46,000.
In his affidavit, the petitioner had claimed to have availed himself of the loan to pursue mechanical engineering course at Vins Christian College of Engineering in Nagercoil. Despite financial problems, his father continued to repay the loan in instalments.
As on December 1, 2013, he had repaid Rs. 99,201. Hence, he sought the bank’s permission to get the loan closed on repayment of another Rs. 19,799 towards the principal loan amount after waiving the entire interest portion.
However, on October 30, 2014, the bank issued a demand notice to the petitioner asking him to pay the outstanding amount of Rs. 1.43 lakh along with interest and other expenses.
After that, the petitioner remitted Rs. 20,000 and insisted upon waiving the interest.
Rejecting his oral plea, the bank issued another demand notice on March 10, 2015 showing the outstanding amount towards the education loan to be Rs. 1.22 lakh, and hence the present writ petition.
