The Madras high court has held that meritorious students admitted under the management quota are also entitled to education loan.
Justice N. Paul Vasanthakumar allowed the petition from B. Vigneswaran and set aside the order of the Indian Overseas Bank, Parangipettai branch in Cuddalore district, and directed it to sanction education loan to the petitioner.
The petitioner contended that he belongs to MBC community. His father had passed away and his mother worked as an agricultural coolie.
Vigneswaran pointed out that he got admission in B.E degree course in electrical and electronics engineering in Annamalai University under the management quota.
His mother paid Rs 64,710 towards tuition fee for 2011-12 with a lot of difficulty and he applied for education loan along with bona fide certificate issued by the institution.
However, the bank rejected his application. It stated the petitioner had got admission under the management quota and should thus secure 65 per cent marks in the qualifying examination of Plus Two according to the policy in vogue, while he had got only 57.25 per cent of marks.
The judge said after the order was passed, the Union finance minister has announced that the students admitted in management quota were also entitled to get education loan and all banks were directed to adopt the policy.
The petitioner was a native of Cuddalore district, who has chosen to join Annamalai University under the management quota, as the university
was located near his residence. Therefore, the condition for grant of education loan, which was now evolved, was applicable to the petitioner’s case.
“The timely action initiated by the Union finance minister is helpful to poor students who are compelled to undergo higher studies in management quota in getting education loan,” the judge observed.