EDUCATIONAL LOAN CANNOT BE REJECTED SOLELY ON THE GROUND OF UNSATISFACTORY CREDIT SCORES OF APPLICANT’S PARENTS: KERALA HC

The Kerala High Court has held that educational loan cannot be rejected to a student solely on the ground of unsatisfactory credit scores of his/her parents. Justice Anu Sivaraman observed that the repayment capacity of the applicant after his education should be the deciding factor as per the relevant scheme. The Court, while considering this plea, referred to a recent judgment, in which it was observed that the repayment possibilities of the loan were contemplated to be made not on the financial position of the parents but solely on the projected future earnings of the students on employment after education.