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

[Bugs Bunny]

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

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?

 

[Predator]

Sound policies and a transparent system are the limit

This can go on and on in many cases. What's the limit?

 

[beingmohit]

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.

But the score is the only metric to decide someone's creditworthiness! Facing rejections when you have a high score is unfair, and so is getting acceptions with a low score.
I understand we can have tragedies, but that's a part of life. Tragedies and other exceptional scenarios cannot be quantified. What is tragic to me could be an acceptable situation for someone else!
At this point, I guess we can agree to disagree. From a loan seeker's perspective, this is a welcome move. From a business perspective, this is a terrible terrible move.

 

[4uziaul]

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

I agree with you, but if this student loan thing reaches crisis level in the future, then every party will politicize it. During election time, every party makes a lot of promises, but we know how many of them fulfill that 🤣 Everyone is only interested in freebies like free electricity, bus fares, gas, etc.

 

[Walter White]

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

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?

In terms of education loan, credit score is hardly the primary factor when it comes to sanctioning of loans. The brand value of an institute is what the bank takes a bet on because passing out from a top institute means better career prospects and a higher probability of loans being repaid. That's why if you have an admit from an elite institute, banks will issue you a loan without collateral.