Son Denied Student Loan Because of His Father
A student was denied an education loan because of his father was a defaulter.
The State Bank of India refused to give education loan to a student from Vadodara. The student had secured admission in the International Management Institute [IMI] in Kolkata and had to pay more than Rs 14 lakh in fees. The student and his father had applied in the State Bank of India for an education loan for Rs.16.75 lakh but the bank refused to sanction it.
The bank stated that the student’s father was known defaulter and had a weak credit score. Which is why they refused to sanction the loan. The student approached the Gujarat High Court to get the loan. He said that his father’s previous defaults should not come in the way of sanctioning his loan.
The Court felt otherwise. The High Court said that they can not force the bank to give a loan, specially if the person has failed to pay back a previous loan.the bank had all the right to reject the boy’s application.
