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Education Loan cannot be rejected for low cibil score of student: Kerela High court.

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www.livelaw.in

Education Loan Cannot Be Rejected For Low CIBIL Score Of Student: Kerala High Court

The Kerala High Court on Tuesday held that an application for education loan by a student could n
www.livelaw.in www.livelaw.in

Read this judgement by the Hon'ble Kerela High Court and in my opinion is setting a bad precedent. Courts are no one to decide who is credit worthy and who's not. In the present factual matrix the Petitioner had already defaulted on two loans and still the court passed the judgement in favour of him despite having a cibil score of mere 560. This may open a Pandora's Box which would be harsh for the banks to handle.

Would love to know your thoughts?
 
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yogeshbansal said:
www.livelaw.in

Education Loan Cannot Be Rejected For Low CIBIL Score Of Student: Kerala High Court

The Kerala High Court on Tuesday held that an application for education loan by a student could n
www.livelaw.in www.livelaw.in

Read this judgement by the Hon'ble Kerela High Court and in my opinion is setting a bad precedent. Courts are no one to decide who is credit worthy and who's not. In the present factual matrix the Petitioner had already defaulted on two loans and still the court passed the judgement in favour of him despite having a cibil score of mere 560.

Would love to know your thoughts?
Click to expand...
Indian courts have this habit of meddling in affairs they should stay away from. This is one such example. Will the courts be answerable to the shareholders if the NPA rises because of such mindless lending practices? The courts want all the power, but no responsibility
 
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Exactly, they have the absolute power and no one to question. Being a lawyer myself I'm aware of the realities
beingmohit said:
Indian courts have this habit of meddling in affairs they should stay away from. This is one such example. Will the courts be answerable to the shareholders if the NPA rises because of such mindless lending practices? The courts want all the power, but no responsibility
Click to expand...
 
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yogeshbansal said:
www.livelaw.in

Education Loan Cannot Be Rejected For Low CIBIL Score Of Student: Kerala High Court

The Kerala High Court on Tuesday held that an application for education loan by a student could n
www.livelaw.in www.livelaw.in

Read this judgement by the Hon'ble Kerela High Court and in my opinion is setting a bad precedent. Courts are no one to decide who is credit worthy and who's not. In the present factual matrix the Petitioner had already defaulted on two loans and still the court passed the judgement in favour of him despite having a cibil score of mere 560.

Would love to know your thoughts?
Click to expand...
This is a problem across Indian courts at all levels, all the judges have some sort of god complex, and meddle in affairs they have no right to.
At the end of the day, the lender is the one who will take a hit if the loan becomes NPA. Why should court direct who a lender does business with?
 
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karanssh said:
This is a problem across Indian courts at all levels, all the judges have some sort of god complex, and meddle in affairs they have no right to.
At the end of the day, the lender is the one who will take a hit if the loan becomes NPA. Why should court direct who a lender does business with?
Click to expand...
Judicial activism is turning into judicial overreach and it it is dangerous.
 
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yogeshbansal said:
www.livelaw.in

Education Loan Cannot Be Rejected For Low CIBIL Score Of Student: Kerala High Court

The Kerala High Court on Tuesday held that an application for education loan by a student could n
www.livelaw.in www.livelaw.in

Read this judgement by the Hon'ble Kerela High Court and in my opinion is setting a bad precedent. Courts are no one to decide who is credit worthy and who's not. In the present factual matrix the Petitioner had already defaulted on two loans and still the court passed the judgement in favour of him despite having a cibil score of mere 560. This may open a Pandora's Box which would be harsh for the banks to handle.

Would love to know your thoughts?
Click to expand...
The real issue is it will not stop at Student loans. The messiah complex these judges have will nudge them to pass similar judgements for other groups as well.
 
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Deathsnatcher said:
i believe in this case the judge should read banking affairs and economics before passing the judgement
if this is the case one with no asset should be allowed educations loans too and we will see no poverty since everyone will take loan and no one care to pay back
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This is a badly worded judgement, most probably will be overruled by the Supreme Court if the Bank Officials decide to go for an appeal.
 
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I guess its okay. Just imagine some random formula taking away your opportunity to study and get a job.
The Judge was right to decide in favour of the petitioner as he have a job offer in hand, meaning that he now have the capacity to repay
 
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The previous case from 2020, was for not sanctioning education loans based on parents' CIBIL. I feel that's a fair case because the son/daughter is going to be the one paying back the loan.
 
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Present case is of student but the reliance was placed on a case from 2020 where bank denied loan due to parents default, no way the facts are similar
cryoengine said:
The previous case from 2020, was for not sanctioning education loans based on parents' CIBIL. I feel that's a fair case because the son/daughter is going to be the one paying back the loan.
Click to expand...
 
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yogeshbansal said:
Present case is of student but the reliance was placed on a case from 2020 where bank denied loan due to parents default, no way the facts are similar
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ye I agree, the previous judgment was given in good faith and fair, but this one is a slippery slope. Just imagine what's going to be next, there going to be more cases coming in citing these 2 judgments.
 
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Predator said:
I guess its okay. Just imagine some random formula taking away your opportunity to study and get a job.
The Judge was right to decide in favour of the petitioner as he have a job offer in hand, meaning that he now have the capacity to repay
Click to expand...

Is it just a random formula? I don't think your credit score will go down if you have no credit history. The CIBIL score very accurately depicts how disciplined you are with debt.
Again, CIBIL does not indicate your capacity to repay. It indicates your willingness/discipline
 
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Nothing will happen, it will be like the US where at the end they had to write off billions of dollars of student loans. And this is India, one party or another will politicize it 🤣
 
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4uziaul said:
Nothing will happen, it will be like the US where at the end they had to write off billions of dollars of student loans. And this is India, one party or another will politicize it 🤣
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I doubt that. Students and salaried classes are examples of unorganized voting communities. So, no one is going to give a damn about their issues
 
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beingmohit said:
Is it just a random formula? I don't think your credit score will go down if you have no credit history. The CIBIL score very accurately depicts how disciplined you are with debt.
Again, CIBIL does not indicate your capacity to repay. It indicates your willingness/discipline
Click to expand...
yes at the end of the day, it is just a random formula.
Say, you face some tragedy and could not pay bills for a while. Does the formula consider this? No
The system is inefficient.
We all have seen many examples in this forum too. People with High CIBIL face rejections and ranting about how unfair and non-transparent the policies are.
And according to the case in question, Judge said If all the other things are right, then don't deny an education loan solely on the basis of score.
 
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