You can file a consumer complaint and take interim relief in the said matter.
Education loan
Last year my daughter applied for Education Loan through Vidhyalakshmi Portal from Indian Bank for her PGDM Course. It was sanctioned. The cost of the study is 12 lakhs. But she applied for 7 lakhs only. The Bank has released 3.4 lakhs for the first year. She completed her first year. During the period the Institute Administration has sanctioned her 1 lakh for her excel in studies and adjusted that amount in her remaining fee. Now she submitted for releasing loan amount for the second year by submitting all the needed receipts and certificates pertaining to her first year studies. On seeing the certificate of 1 lakh sanctioning, the Bank said, it is mandatory that this amount has to be paid into the loan account and they very reluctant in releasing the remaining loan of the sanctioned one. We fear that she would have to discontinue her studies because of the bank's adamant harassment as such. We are desperately expect a ray of hope from elsewhere. Are there any judgement in the Court of Law in such of this case? Kindly guide me. - K. UDAYAKUMAR
Asked 6 years ago in Civil Law
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10 Answers
No such money was credited to your daughter account
2) only fees was reduced of your daughter
3) it is not mandatory to pay amount to loan account as no such money was received by you
4) complain to bank ombudsman regarding bank refusal to disburse balance loan amount
If you need only judgments search in google. However if you need a legal remedy it can be done by restraining the bank from pursuing unfair measures.
Regards
G.Rajaganapathy Lawyer
High Court of Madras
Hi,it is advisable to file a civil suit for declaration and permanent injunction in court to obtain a restraining order from the court to the bank and seek immediate temporary relief
In the present secnario, you can file a complain case under the consumer protection act before the District Consumer Forum in order to get compensation for the harrassment.
Your daughter can file a writ petition before the High court seeking direction for the bank to release the loan so that she can continue her education.
What was the need to show excess 1 lacs, bank will only release rest amount, any additional fees shall be either paid from personal account or request the bank to enhance loan to 8 lacs.
And your query is not clear.
Dear sir
You can file a complaint against bank with consumer forum or banking ombudsman for this unfair practices while releasing the remaining amount of education loan.
Also that one lakh was not sanctioned for depositing in the loan account it was sanction for study of your daughter and bank cannot claim that money to be deposited with them.
Please go through the letter of sanction issued by the bank in order to check if there is any clause requiring your daughter to deposit the money towards her loan dues. Also, please verify when the EMI commences. The bank may have some apprehension about how you will finance the difference between the cost of study (Rs.12 lakh) and the loan amount sanctioned (Rs.7 lakh). You have to convince them on this point. If you have already shown acceptable proof for bringing in your margin, the bank cannot insist on depositing Rs.1 lakh now. Please meet the manager in person and convince him/her. If the result is not fruitful, escalate your grievance to the Regional Head. If still unsuccessful, you may complain to IBA, RBI and the Finance Ministry for relief.
First of all the stand taken by the bank in this regard is illegal and they are unnecessarily harassing without following the rules in this regard.
You may issue a legal notice if the higher authorities also turn deaf ear to your request in this regard, demanding them to release the loan as per the original sanction letter
After that you may plan to drag them to consumer forum for remedy and relief, if it is not decided.
