TN: Performance in exam no basis to reject loan

Chennai, Sep 20: Madras High Court has ruled that the poor performance in a qualifying examination cannot be a ground for banks to reject educational loans.

Allowing a writ petition filed by a city student N Gopinath, Justice A Kulasekaran who passed the order, directed the SBI to consider afresh the student's plea for loan.

He said poor academic record in school could not be a valid reason for rejection of loan.

The Nandambakkam branch of the State Bank of India (SBI) had rejected the student's loan application on the ground that he made three attempts to get through Plus Two examination and complete schooling.

UNI