Edu Loan: Petition against collateral security

A Public Interest Litigation has been filed in the Kerala High Court challenging the proceedings against parents of nursing students for recovering education loans up to Rs 4 lakh availed by their children. The petition was filed by All Kerala Nursing Student and Parents Welfare Association general secretary A C Babu. The petitioner submitted that the banks could not make the parents liable in any manner if the loan amount availed by their children was less than Rs 4 lakh. The Educational Loan Scheme for students clearly said that no collateral security should be insisted up on for loans up to Rs 4 lakh. However, for loans above this amount, collateral security of suitable value may be obtained. However many banks in the state were flouting these. Hence the petitioner requested the court to declare that the parents were not liable to be proceeded in connection with education loan up to Rs 4 lakh.


Keywords: Public Interest Litigation ,Kerala High Court , parents,nursing students , education loans,All Kerala Nursing Student , Parents Welfare Association general secretary ,petitioner ,banks ,collateral security,education news