Kerala High Court
Alana Mariya Gimmi vs State Bank Of India on 13 July, 2026
WP(C)Nos.40358/2025 and con.cases
1
2026:KER:51085
CR
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
MONDAY, THE 13TH DAY OF JULY 2026 / 22ND ASHADHA, 1948
WP(C) NO. 40358 OF 2025
PETITIONER:
DILHA JAN GOVINDAN
AGED 19 YEARS
D/O AMBUJAN GOVINDAN AKKOTTU HOUSE, KANNAMANGALAM SOUTH
P O, MAVELIKARA, ALAPPUZHA DISTRCT, PIN - 690104
BY ADV SHRI.K.JAISHANKAR
RESPONDENTS:
1 STATE BANK OF INDIA
MAVELIKARA BRANCH (08645), P B NO.9, GOMADASTH COMPLEX,
OPP PRIVATE BUS STAND, MAVELIKARA, ALAPPUZHA DISTRICT,
PIN- REPRESENTED BY ITS CHIEF MANAGER., PIN - 690101
2 STATE BANK OF INDIA
HEAD OFFICE, STATE BANK BHAVAN, MADAME CAMA ROAD,
NARIMAN POINT, MUMBAI, MAHARASHTRA. REPRESENTED BY ITS
MANAGING DIRECTOR., PIN - 400021
3 RESERVE BANK OF INDIA
CENTRAL OFFICE BUILDING, SHAHID BHAGAT SINGH ROAD,
MUMBAI, MAHARASHTRA REPRESENTED BY ITS GOVERNOR., PIN -
400001
4 LEAD DISTRICT MANAGER
LEAD BANK OFFICE, FIRST FLOOR, SBI MAIN BRANCH, BEACH
ROAD, ALAPPUZHA, PIN - 688001
WP(C)Nos.40358/2025 and con.cases
2
2026:KER:51085
BY ADVS.
SMT.S.AMBILY,SC
SMT.RUPA R. NAIR
SRI.K.K.CHANDRAN PILLAI (SR.)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
13.07.2026, ALONG WITH WP(C).4667/2026, 10522/2026 AND CONNECTED
CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C)Nos.40358/2025 and con.cases
3
2026:KER:51085
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
MONDAY, THE 13TH DAY OF JULY 2026 / 22ND ASHADHA, 1948
WP(C) NO. 45597 OF 2025
PETITIONER:
MARGARET M . KOCHUMUTTOM
AGED 19 YEARS
D/O MANAKSHA, KOCHUMUTTOM HOUSE, MULLAPUZHACHAL P.O.,
ENANALLOOR VILLAGE, MUVATTUPUZHA TALUK, ERNAKULAM DIST,
PIN - 686670
BY ADV SHRI.SABU FRANCIS
RESPONDENTS:
1 KOTAK MAHINDRA PRIME LTD.
15TH FLOOR, NIPPON Q1 MALL, N.H.-66, BY-PASS,
PALARIVATTOM, ERNAKULAM DIST.,REPRESENTED BY ITS
MANAGER, PIN - 682028
2 THE BRANCH MANAGER
INDIAN BANK, VELLURKUNNAM, VELLURKUNNAM VILLAGE,
MUVATTUPUZHA TALUK, ERNAKULAM DIST., MARKET P.O., PIN -
686673
3 THE TAAN UNION CIBIL LTD
ONE INDIA BULL CENTRE, TOWER 2A, 19TH FLOOR, SENAPATHY
BAPAT MARG, ELPHISTONE ROAD, MUMBAI , REPRESENTED BY ITS
MANAGING DIRECTOR., PIN - 400013
BY ADVS.
SRI.B.S.SURESH KUMAR
SRI.ASHLEY JOHN
SMT.RANJANA V.
WP(C)Nos.40358/2025 and con.cases
4
2026:KER:51085
SMT.ANUSREE C.S.
SMT.NEMI P.N.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
13.07.2026, ALONG WITH WP(C).40358/2025 AND CONNECTED CASES, THE COURT
ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C)Nos.40358/2025 and con.cases
5
2026:KER:51085
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
MONDAY, THE 13TH DAY OF JULY 2026 / 22ND ASHADHA, 1948
WP(C) NO. 4667 OF 2026
PETITIONER:
ALANA MARIYA GIMMI
AGED 19 YEARS
D/O GIMMY GEORGE, KALLAKKULAM HOUSE PUNNAKKUNNU P O,
BALAL VILLAGE, KASARGOD DISTRICT., PIN - 671534
BY ADVS.
SRI.VARUGHESE M EASO
SHRI.VIVEK VARGHESE P.J.
SHRI.BENNY T.
RESPONDENTS:
1 STATE BANK OF INDIA
REPRESENTED BY THE BRANCH MANAGER, STATE BANK OF INDIA,
VELLARIKKUND BRANCH, VELLARIKKUND P O, KASARGOD
DISTRICT, KERALA STATE., PIN - 671534
2 THE REGIONAL MANAGER
(LOAN SECTOR) REGIONAL OFFICE (RBO), STATE BANK OF INDIA
MAVUMKAL ROAD, KANJAGAD P O, KASARGOD DISTRICT., PIN -
671315
3 STATE OF KERALA
REPRESENTED BY THE SECRETARY, DEPARTMENT OF GENERAL
EDUCATION, KERALA STATE. SECRETARIAT, THIRUVANTHAPURAM.,
PIN - 695001
4 UNION OF INDIA
WP(C)Nos.40358/2025 and con.cases
6
2026:KER:51085
REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE, NORTH
BLOCK, NEW DELHI., PIN - 110001
BY ADVS.
SMT.S.AMBILY
SHRI.P.SAJEEV (PERUMPALAM), CGC
SMT.RUPA R. NAIR
SRI.K.K.CHANDRAN PILLAI (SR.)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
13.07.2026, ALONG WITH WP(C).40358/2025 AND CONNECTED CASES, THE COURT
ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C)Nos.40358/2025 and con.cases
7
2026:KER:51085
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
MONDAY, THE 13TH DAY OF JULY 2026 / 22ND ASHADHA, 1948
WP(C) NO. 10522 OF 2026
PETITIONER:
JUWANA RAJAN
AGED 23 YEARS
D /O RAJAN ABRAHAM RESIDING AT MODIYIL HOUSE MARKET PO
KADATHY MUVATTUPUZHA, PIN - 686673
BY ADVS.
SHRI.L.RAM MOHAN
SRI.M.AUBREY ABRAHAM ISAAC
RESPONDENTS:
1 THE STATE BANK OF INDIA
ARAMANA BRANCH REPRESENTED BY ITS AUTHORISED OFFICER
ARAMANA COMPLEX MUVATTUPUZZHA, PIN - 686661
2 THE DEPUTY GENERAL MANAGER
(BUSINESS & OPERATIONS), THE STATE BANK OF INDIA
ADMINISTRATIVE OFFICE SHANMUGHAM ROAD ERNAKULAM-, PIN -
682031
3 THE GOVERNOR
RESERVE BANK OF INDIA, 18TH FLOOR SHAHID BHAGATH SINGH
ROAD FORT MANBAI, PIN - 400001
BY ADVS.
SMT.S.AMBILY
SMT.RUPA R. NAIR
WP(C)Nos.40358/2025 and con.cases
8
2026:KER:51085
SRI.ARJUN SANTHOSH
SRI.K.K.CHANDRAN PILLAI (SR.)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
13.07.2026, ALONG WITH WP(C).40358/2025 AND CONNECTED CASES, THE COURT
ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C)Nos.40358/2025 and con.cases
9
2026:KER:51085
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
MONDAY, THE 13TH DAY OF JULY 2026 / 22ND ASHADHA, 1948
WP(C) NO. 15675 OF 2026
PETITIONER:
SOORYAN
AGED 20 YEARS
S/O. SUDHEER L G, RESIDING AT SURESH BHAVAN, KAITHACODU
P.O, PAVITHRESWARAM, KOTTARAKARA TALUK, KOLLAM DISTRICT;
REPRESENTED BY HIS POWER OF ATTORNEY HOLDER, SUDHEER L
G, AGED 50 YEARS, S/O. A GOPALAN, RESIDING AT SURESH
BHAVAN, KAITHACODU P.O, PAVITHRESWARAM, KOTTARAKARA
TALUK, KOLLAM DISTRICT, PIN - 691543
BY ADV SRI.T.U.SUJITH KUMAR
RESPONDENT:
THE BRANCH MANAGER, STATE BANK OF INDIA
KUNDARA BRANCH, SH 16, HOSPITAL JUNCTION, KUNDARA P.O,
KOLLAM DISTRICT, KERALA, PIN - 691501
BY ADVS.
SMT.S.AMBILY
SMT.RUPA R. NAIR
SRI.K.K.CHANDRAN PILLAI (SR.)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
13.07.2026, ALONG WITH WP(C).40358/2025 AND CONNECTED CASES, THE COURT
ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C)Nos.40358/2025 and con.cases
10
2026:KER:51085
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
MONDAY, THE 13TH DAY OF JULY 2026 / 22ND ASHADHA, 1948
WP(C) NO. 19554 OF 2026
PETITIONER:
AISWARYA BABU,
AGED 19 YEARS
D/O VIJAYA BABU MAVILAYIL HOUSE, MATTOM SOUTH,
THATTARAMBALAM P.O, MAVELIKARA, ALAPPUZHA, PIN - 690103
BY ADVS.
SRI.SAJU J PANICKER
SHRI.KURIAN K JOSE
RESPONDENTS:
THE CHIEF MANAGER
STATE BANK OF INDIA, MAVELIKARA BRANCH, GOMADATHU
SHOPPING COMPLEX, OPP: PRIVATE BUS STAND, MAVELIKARA
P.O, ALAPPUZHA, PIN - 690101
BY ADVS.
SMT.S.AMBILY
SRI.K.K.CHANDRAN PILLAI (SR.)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
13.07.2026, ALONG WITH WP(C).40358/2025 AND CONNECTED CASES, THE COURT
ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C)Nos.40358/2025 and con.cases
11
2026:KER:51085
CR
JUDGMENT
[WP(C) Nos.40358/2025, 4667/2026, 10522/2026,
15675/2026, 19554/2026, 45597/2025]
Dated this the 13th day of July, 2024
1. All these Writ Petitions are filed by students who have been
pursuing their studies in different courses. They are aggrieved
by the refusal of the Respondents/Banks to grant Educational
Loan applied by them on the ground that the Credit Score/Credit
Report of the co-borrower, who is one of the parents of the
Petitioners, provided by the Credit Information Companies is on
the lower side. In all these Writ Petitions, the substantial prayer
sought for is to direct the Respondents/Banks to grant
Educational Loans to the Petitioners ignoring the Credit Score of
their parents. The grounds raised in these Writ Petitions are
almost identical and the precedents relied on by them are also
WP(C)Nos.40358/2025 and con.cases
12
2026:KER:51085
the same. Since the questions to be considered in these Writ
Petitions are common, I am not referring to the pleadings in
these Writ Petitions. The Respondents/Banks have filed
Statements producing certain documents opposing the prayers
in the Writ Petitions. In all the Writ Petitions except W.P.(C)
No.45597/2025, State Bank of India is the Respondent/Bank. In
W.P.(C) No.45597/2025, Indian Bank is the Respondent Bank.
2. I heard the learned Counsel for the Petitioners, Sri. Jaishankar,
Sri. Sabu Francis, Sri. Varughese M. Easo, Sri. Ram Mohan
Liladharan, Sri. T.U. Sujith Kumar and Sri. Saju Panicker, and
the learned Counsel for the Respondent Bank in W.P.(C)
No.45597/2025, Sri. Binoy Vasudevan and the learned Senior
Counsel for the Respondent Bank in the other Writ Petitions,
Sri.K.K. Chandran Pillai, instructed by Adv. Sri. S. Ambili.
3. Learned Counsel for the Petitioners contended that the denial of
Educational Loan on the basis of the Credit Score of the co-
WP(C)Nos.40358/2025 and con.cases
13
2026:KER:51085
borrower is illegal and unsustainable. Educational Loan is to be
repaid by the students who are availing the Educational Loan. It
is the repayment capacity of the student on securing a job after
completing the education that has to be the deciding factor for
granting Educational Loan. If Educational Loan is denied to
meritorious students who are not having sufficient resources to
meet their educational expenses, it will defeat the very purpose
for which the Educational Loan Scheme was formulated by the
Government. The main objectives of the Model Educational
Loan Scheme formulated by the Indian Banks’ Association
pursuant to the policy decision taken by the Government are to
provide financial support from the banking system to meritorious
students for pursuing higher education in India and abroad and
to ensure that a meritorious student, though poor, is provided an
opportunity to pursue education with financial support from the
banking system at affordable terms and conditions. If the stand
WP(C)Nos.40358/2025 and con.cases
14
2026:KER:51085
of the Respondent Banks is accepted, it would defeat the very
purpose for which the scheme is formulated. Apart from the
above contentions, the Petitioner in W.P.(C) No.4667/2026 has
raised an additional contention that in view of the Credit
Guarantee Fund Scheme for Educational Loans (CGFSEL)
formulated by the Government of India, the repayment of the
Educational Loan is guaranteed by the Central Government
when there occurs a default in repayment by the borrowers and
in view of the CGFSEL, the Banks need not be apprehensive
about the repayment of the Educational Loan and in such case,
the Credit Score/Credit Report of the borrowers are totally
irrelevant. The learned Counsel for the Petitioners relied on the
Single Bench decisions of this Court in Noorjahan N.S. v. The
General Manager, State Bank of India and Others [2019:KER:72386],
Pranav S.R. v. The Branch Manager, State Bank of India and Others [AIR
2020 Ker 161], K.M. George v. The Branch Manager, State Bank of India
WP(C)Nos.40358/2025 and con.cases
15
2026:KER:51085
and Others [2020:KER:33564] and Kiran David v. Assistant General
Manager, State Bank of India, Tvm and Another [2022 (2) KHC 373] to
substantiate the point that the Credit Score/Credit Report of the
co-borrower of the Education Loan is not relevant to consider for
the grant of Educational Loan. The decision in Aleena Sreejith and
Another v. Union of India and Others [2024:KER:27888] is cited to
substantiate the point that in view of the CGFSEL, the Banks
need not consider the Credit Score/Credit Report of the co-
borrower/parent. Learned Counsel concluded their arguments
contending that the action of the Banks denying Education Loan
is in violation of the fundamental rights guaranteed under Articles
14 and 41 of the Constitution of India.
4. Learned Senior Counsel for the Respondent/State Bank of India
and the Counsel for the Respondent/Indian Bank contended that
the Petitioners cannot claim Educational Loan as a matter of
right. The Banks can grant Educational Loans to the Petitioners
WP(C)Nos.40358/2025 and con.cases
16
2026:KER:51085
only if they satisfy the relevant conditions provided under the IBA
Model Educational Loan Scheme formulated by the Indian
Banks’ Association and the Master Circulars for Educational
Loans formulated by the Banks. The learned Senior Counsel
invited my attention to the various clauses in the extant IBA
Model Educational Scheme and the Master Circular for
Educational Loans formulated by the State Bank of India to
convince this Court that the Credit Score/Credit Report of the co-
borrower/parent is a relevant factor to be considered while
considering an application for Educational Loan. The
Respondents/Banks have placed on record the IBA Model
Educational Loan Schemes of the years 2001, 2012, 2021 &
2022 to demonstrate the evolution of various terms and
conditions for granting Educational Loans. The Model
Educational Loan Scheme was formulated by the Indian Banks’
Association at the instance of the Central Government on the
WP(C)Nos.40358/2025 and con.cases
17
2026:KER:51085
introduction of the Educational Loan Scheme in the year 2001.
The Educational Loan Scheme was announced in the Union
Budget for 2001-2002. The Central Government introduced the
Educational Loan Scheme after the Finance Minister of the
Government of India held a meeting with Chief Executives of the
Public Sector Banks, in which the role of Commercial Banks in
facilitating the pursuit of higher education by poor and
meritorious students is highlighted. The Indian Banks’
Association constituted a study group to examine the issue in
detail. Based on the recommendation of the study, a
comprehensive Educational Loan Scheme was prepared by the
Indian Banks’ Association for adoption by all Banks. On account
of the difficulties that arose during the course of implementation
of the Model Educational Loan Scheme from time to time, the
Scheme was modified from time to time. It is well settled by the
Division Bench of this Court in Arya v. Reserve Bank of India [2015 (4)
WP(C)Nos.40358/2025 and con.cases
18
2026:KER:51085
KLT 478] that right to get Educational Loan is not a fundamental
right; that right to higher education is not a fundament right and
that there is no inherent right to get Educational Loan. It is true
that learned Single Judges of this Court in various decisions
cited by the Counsel for the Petitioners held that the Credit Score
of the co-borrower/parent of the student is not relevant to
consider for the eligibility of Educational Loan but in Haritheeth P.
v. The Branch Manager, State Bank of India and Another
[2024:KER:78076], the learned Single Judge of this Court
considered the earlier decisions of this Court and the extant IBA
Model Education Loan Scheme, and thereafter found that the
earlier decision in Pranav S.R. (Supra) was rendered based on IBA
Guidelines then in vogue, which did not contain any specific
provision for reckoning the Credit Score and the Credit Report of
the borrower/co-borrower for deciding the loan application; that
if the student/parent/guardian has no credit history they are
WP(C)Nos.40358/2025 and con.cases
19
2026:KER:51085
assigned to be creditworthy and that in case of adverse credit
history, the Banks at their discretion, can frame suitable criteria
based on their risk appetite. It is this decision which holds the
field now, which was passed in accordance with the extant IBA
Model Educational Loan Scheme, and hence, in view of the said
decisions, the Petitioners are not entitled to get Educational
Loans. Learned Senior Counsel pointed out that the Petitioners
have not challenged the IBA Model Educational Loan Scheme
and the Master Circular for Educational Loans formulated by the
Bank. In such case, the Petitioners are entitled to succeed only
if they are able to demonstrate that their applications for
Educational Loans are rejected in violation of the IBA Model
Educational Loan Scheme and the Master Circular for
Educational Loans formulated by the Bank. The learned Senior
Counsel further contended that the decision rendered by this
Court in Aleena Sreejith (supra) was under a misconception that the
WP(C)Nos.40358/2025 and con.cases
20
2026:KER:51085
CGFSEL is intended to ensure that meritorious students are not
denied the chance of education on account of the lack of funds.
It is clear from the pleadings extracted in the said decision that
the Petitioner therein claimed grant of Educational Loan under
the CGFSEL. The purpose of the CGFSEL is to guarantee the
member lending institutions in case of default made by the
borrowers of Educational Loans. The provisions of the CGFSEL
has nothing to do with the case of consideration of loan
applications from the students for Educational Loan. Learned
Senior Counsel invited my attention to various provisions in the
CGFSEL to substantiate that it is subject to the provisions of the
IBA Model Educational Loan Scheme. Learned Senior Counsel
invited my attention to the object of enacting the Credit
Information Companies (Regulation) Act, 2005. It is contended
that in order to reduce the percentage of Non-Performing Assets
(NPAs), the Parliament enacted the Recovery of Debts Due to
WP(C)Nos.40358/2025 and con.cases
21
2026:KER:51085
Banks and Financial Institutions Act in the year 1993 (now
renamed as the Recovery of Debts and Bankruptcy Act) by
simplifying the procedure for recovery of the defaulted loans and
setting up a separate Tribunal for adjudication. Since the
provisions under the said Act did not yield the desired result,
Parliament enacted the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act in the
year 2002. As per the provisions of the said Act, the Banks and
Financial Institutions are given power to deal directly with the
secured assets. The above two enactments are introduced with
the intention to reduce the percentage of NPAs by providing
provisions for expediting the recovery of the defaulted loans.
Since it was found that the borrowers were availing loans and
other financial assistance from different Banks without disclosing
their existing loans and there was no mechanism for the Banks
and other Financial Institutions to check whether the borrowers
WP(C)Nos.40358/2025 and con.cases
22
2026:KER:51085
were indebted to other Banks and Financial Institutions, the
Parliament enacted Credit Information Companies (Regulation)
Act in the year 2005 in order to provide a mechanism for
collecting credit information of the borrowers from the Banks and
other Financial Institutions and to furnish and share the
information with the member Banks/Financial Institutions. When
the financial credibility of the Applicants for loans is verified at
the time of granting the loan itself with reference to their credit
history provided by the Credit Information Companies, it would
avoid the possible defaults of the loan and would reduce the
NPAs. If the Applications for Educational Loans are considered
without reference to the Credit Score/Credit Report of the
Applicants, it would defeat the very purpose for which the Credit
Information Companies (Regulation) Act, 2005, is incorporated
by the Parliament. As a matter of fact, a major share of the NPAs
represents the defaulted Education Loan. The learned Senior
WP(C)Nos.40358/2025 and con.cases
23
2026:KER:51085
Counsel cited the decision of the learned Single Judge of this
Court in Nizamudheen P. v. Union of India and Others [2023:KER:19425]
and contended that this Court has already considered similar
contentions on the strength of the CGFSEL and rejected the
same and upheld the rejection of the Educational Loan by the
Bank. The said decision was confirmed by the Division Bench of
this Court. The decision in Aleena Sreejith (supra) was rendered
without noticing the earlier decision in Nizamudheen P. (supra).
Learned Senior Counsel concluded his arguments praying to
dismiss the Writ Petition and also submitted that the Respondent
Bank is ready to reconsider the Loan Applications submitted by
the Petitioners if they are willing to substitute the co-borrowers
with sufficient Credit Score and good Credit History. Learned
Counsel for the Respondent Bank in W.P.(C) No.45597/2025
also advanced arguments in support of the arguments made by
the learned Senior Counsel.
WP(C)Nos.40358/2025 and con.cases
24
2026:KER:51085
5. I have considered the rival contentions.
6. In Arya (supra), the Division Bench of this Court fully endorsed the
view taken by the Division Bench of the Madras High Court in
A.Kasinathan v. Branch Manager, Canara Bank, Town Hall Road, Madurai
[Laws (Mad)-2012-4-52] holding that there is no inherent right to
Educational Loan; that in terms of Article 21A and Article 41,
while there is a right to education, there is no right to Educational
Loans; that there is no fundamental right to higher education;
and it is for the State, IBA and the Bank to formulate its policies
for the enhancement of educational and economic interests of
Scheduled Castes and Scheduled Tribes in view of the enabling
constitutional provisions in Article 46. In view of this decision, it
could not be held that the denial of Educational Loan by the
Banks affects the fundamental rights of the Petitioners.
7. In Noorjahan N.S. (supra), though the learned Single Judge of this
Court held that the rejection of the request for Educational Loan
WP(C)Nos.40358/2025 and con.cases
25
2026:KER:51085
on the ground that the father of the Petitioner does not have the
requisite Credit Score is arbitrary and violative of the spirit of the
Circular issued by the Reserve Bank of India which is binding on
the Bank, the judgment concluded with the direction that the
Bank would be free to insist another relative of the Petitioner
acceptable to the Bank to act as joint borrower in the place of
the father of the Petitioner for the purpose of disbursing the loan.
This direction in the concluding portion of the judgment has, in
fact, nullified the observations noted above in the said judgment.
In Pranav S.R. (supra), the learned Single Judge of this Court,
following the judgment in Noorjahan N.S. (supra), held that
unsatisfactory Credit Scores of the parents of the Petitioner
cannot be a ground to reject the Educational Loan in view of the
fact that the repayment capacity of the Petitioner after his
education should be a deciding factor as per Clause 10 of the
RBI Scheme. The decision in K.M. George (supra) is rendered
WP(C)Nos.40358/2025 and con.cases
26
2026:KER:51085
directing reconsideration of the loan application irrespective of
the CIBIL Score of the father/co-borrower following the decisions
in Noorjahan N.S. (supra) and Pranav S.R. (supra). The decision in
Kiran David (supra) was rendered following the judgment in Pranav
S.R. (supra). In the said decision, the Banks therein were directed
to reconsider the Loan Applications submitted by the Petitioners
therein, disregarding the low Credit Score of the co-borrowers.
In State Bank of India and Another v. Ajith Sajeevan [2025:KER:28680],
the Division Bench of this Court considered the challenge
against the judgment of the learned Single Judge directing the
consideration of Educational Loan applications submitted by the
Petitioners without regard to their Credit Reports. In the said
decision, the legal question as to whether such a direction could
have been issued is kept open to be urged in appropriate cases
since it is found that the Petitioners have not taken advantage of
the impugned judgment. The learned Single Judge of this Court
WP(C)Nos.40358/2025 and con.cases
27
2026:KER:51085
in Haritheeth P. (supra) has considered the rejection of the
Educational Loan on the ground of delinquency noted in the
Credit Score of the Petitioner’s father. The learned Single Judge
considered the decision in Pranav S.R. (supra) and found that the
said decision is rendered as per 2001 Model Educational Loan
Scheme and as per the 2021 Model Educational Loan Scheme,
the CIBIL and Credit Information Reports are to be used for
ascertaining the credit discipline of the loan applicants; that after
the introduction of the Credit Information Companies
(Regulation) Act, 2005, the creditworthiness of a proposed
borrower would largely depend upon his Credit Score and
Report; and that on a conjoint reading of the provisions, it is
evident that the Bank is bound to reject/return the Loan
Application when faced with unsatisfactory Credit Score and
adverse Credit Report of the co-borrower. Learned Single Judge
dismissed the Writ Petition holding that, in the absence of any
WP(C)Nos.40358/2025 and con.cases
28
2026:KER:51085
challenge to the Schemes or the Circulars making requisite
Credit Score and satisfactory Credit History mandatory for the
grant of Educational Loans, the prayer for directing the Bank to
process the Petitioner’s Application for Educational Loan in spite
of an adverse report against the co-borrower cannot be
sustained. In the present cases also, there is no challenge
against the relevant Schemes and Circulars. In such case, I am
bound to follow the decision in Haritheeth P. (supra). In such case,
the only question before this Court is whether the rejection of the
Applications for Educational Loan by the Respondents/Banks is
in violation of the extant IBA Model Educational Loan Scheme
and the Circulars issued by the Respondents/Banks. The
Petitioners could not point out any violation of the provisions of
the said Scheme and Circular before this Court. Hence, in the
light of the decision of the learned Single Judge in Haritheeth P.
(supra) considering the extant IBA Model Educational Loan
WP(C)Nos.40358/2025 and con.cases
29
2026:KER:51085
Scheme, the prayer of the Petitioners to reconsider the
Application of their Educational Loan disregarding the Credit
Score/Credit History of the co-borrower parent could not be
allowed.
8. With regard to the contention raised by the Petitioner in W.P.(C)
No.4667/2026 relying on the CGFSEL, it is seen that the claim
raised by an Applicant for Educational Loan on the strength of
the said Scheme was elaborately considered and rejected by
this Court in Nizamudheen P. (supra). Though a Writ Appeal was
filed against the judgment in the said decision, the same was
dismissed by the Division Bench of this Court as per the decision
in Nizamudheen P. v. Union of India and Others [2023:KER:33369]. The
learned Single Judge of this Court rendered the decision in
Aleena Sreejith (supra) without noticing the Single Bench decision
and Division Bench decision in Nizamudheen P. (supra). The Single
Bench as well as the Division Bench in Nizamudheen P. (supra) has
WP(C)Nos.40358/2025 and con.cases
30
2026:KER:51085
found that the CGFSEL is not a Scheme for granting loans, but
it is a Scheme for guaranteeing the Educational Loans disbursed
by the lending Banks in case of any default by the borrower.
9. Clause 5(v) of the CGFSEL defines ‘Educational Loan’ as any
financial assistance by way of loan extended by the lending
institution to the eligible borrower for higher education as per the
IBA Model Educational Loan Scheme. Clause 5(iii) defines
‘eligible borrower’ as a new or existing borrower who meets the
eligibility criteria under the IBA Model Educational Loan Scheme
and executed loan documents with the lending institutions to
avail the Educational Loan. Clause 7(i) provides that the fund
shall cover the Educational Loans extended by Member Lending
Institution(s) to an eligible borrower under the IBA Model
Educational Loan Scheme. Clause 10(i) provides that the
lending institution shall evaluate and sanction Educational Loan
in accordance with the IBA Model Educational Loan Scheme.
WP(C)Nos.40358/2025 and con.cases
31
2026:KER:51085
Clause 10(vii) provides that payment of guarantee claim by the
National Credit Guarantee Trustee Company (NCGTC) to the
lending institution does not take away the responsibility of the
lending institution to recover the entire outstanding amount of
the credit from the borrower with applicable interest and that the
lending institution shall exercise all the necessary precautions
and maintain its recourse to the borrower for entire amount of
Educational Loan owed to it and initiate such necessary actions
for recovery of the outstanding amount, including such action as
may be advised by NCGTC. As per Clause 12, the maximum
guarantee cover is only 75% of the defaulted amount. As per
Clause 13(iv), in the event of default, the lending institution shall
exercise its rights, if any, to take over the assets of the borrowers
and the amount realised, if any, from the sale of such assets or
otherwise shall first be credited in full by the lending institutions
to NCGTC before it claims the remaining portion of the
WP(C)Nos.40358/2025 and con.cases
32
2026:KER:51085
guaranteed amount. It is clear from these provisions that the
Applicant has to satisfy the eligibility conditions as per the IBA
Model Educational Loan Scheme to get an Educational Loan.
The provisions of the CGFSEL could not be considered for the
grant of Educational Loan under the IBA Model Educational Loan
Scheme. The CGFSEL does not in any way dilute provisions in
the IBA Model Educational Loan Scheme. In view of the
responsibility of the lending institutions to recover the defaulted
loan even after getting 75% of the defaulted amount from the
Guarantee Fund under the CGFSEL, it could not be said that the
confirmation of satisfactory Credit Score/Credit Report of the
Applicants and Co-Applicants for Educational Loan is
unwarranted on account of the CGFSEL providing guarantee to
the Banks.
10. Considering the objectives of the Credit Information Companies
(Regulation) Act, 2005, it could not be said that the Bank shall
WP(C)Nos.40358/2025 and con.cases
33
2026:KER:51085
not consider the Credit Score/Credit Report of the co-borrower
when the Bank considers an Application for Educational Loan.
11. In view of the aforesaid discussion, I find that the stand of the
Respondents/Banks that the Applicants are not eligible for
Educational Loan on account of the lower Credit
Score/unsatisfactory Credit Report of the co-borrower/parent is
sustainable. These Writ Petitions are liable to be dismissed.
However, the Respondents/Banks shall reconsider the
Applications, if the Applicants provide eligible co-borrower with
satisfactory Credit Score/Credit Report.
12. Accordingly, these Writ Petitions are dismissed.
Sd/-
M.A.ABDUL HAKHIM
JUDGE
Jma/shg
WP(C)Nos.40358/2025 and con.cases
34
2026:KER:51085
APPENDIX OF WP(C) NO. 40358 OF 2025
PETITIONER EXHIBITS
Exhibit P1 THE TRUE COPY OF THE CERTIFICATE DATED
22.05.2025 WITH REGISTER NUMBER 24083569
ISSUED BY THE BOARD OF HIGHER SECONDARY
EXAMINATIONS; GOVERNMENT OF KERALA
Exhibit P2 THE TRUE COPY OF THE FEE STRUCTURE DATED
25.08.2025 ISSUED BY THE PRINCIPAL, DC
SCHOOL OF MANAGEMENT AND TECHNOLOGY,
VAGAMON
Exhibit P3 THE TRUE COPY OF THE CERTIFICATE OF
AFFILIATION DATED 06.07.2025 ISSUED BY THE
REGISTRAR, MAHATMA GANDHI UNIVERSITY.
Exhibit P4 THE TRUE COPY OF THE APPROVAL LETTER DATED
03.01.2025 ISSUED BY ALL INDIA COUNCIL FOR
TECHNICAL EDUCATION.
Exhibit P5 THE TRUE COPY OF CERTIFICATE OF
ACCREDITATION DATED 08.11.2024 ISSUED BY
THE NATIONAL ASSESSMENT AND ACCREDITATION
COUNCIL.
Exhibit P6 TRUE COPY OF THE EDUCATIONAL LOAN
APPLICATION.
Exhibit P7 THE TRUE COPY OF THE CERTIFICATE OF
INSURANCE DATED 01.09.2025.
Exhibit P8 THE TRUE COPY OF THE REJECTION LETTER DATED
07.10.2025 ISSUED BY THE CHIEF MANAGER,
SBI, MAVELIKARA BRANCH.
WP(C)Nos.40358/2025 and con.cases
35
2026:KER:51085
Exhibit P9 THE TRUE COPY OF THE JUDGEMENT IN WP (C)
NO. 17222/2023 DATED 21.08.2023
Exhibit P10 THE TRUE COPY OF THE CONSOLIDATED CONSUMER
CREDIT REPORT OF THE PETITIONER’S FATHER.
RESPONDENT ANNEXURES
ANNEXURE R1(a) True copy of the relevant portion of the
Master Circular updated up to 31.03.2024
ANNEXURE R1(b) True copy of the Judgment of this Honorable
Court in WPC 19248 of 2019 dated 03.12.2019
ANNEXURE R1(c) True copy of the common judgment in WA
1171/2023 and 1174/2023 of this Honorable
Court dated 02.04.2025
ANNEXURE R1(d) True copy of the judgment of this Honorable
Court in WPC 29966/2024 dated 14.10.2024
WP(C)Nos.40358/2025 and con.cases
36
2026:KER:51085
APPENDIX OF WP(C) NO. 45597 OF 2025
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF PETITIONER’S TOTAL FOUR YEARS’
FEE STRUCTURE OF B.SC. NURSING DEGREE
COURSE ISSUED BY COLLEGE OF NURSING , ST.
MARTHA'S HOSPITAL, BENGALURU DATED
23.07.2025
Exhibit P2 TRUE COPY OF PETITIONER'S 1ST SEMESTER EXAM
RESULT ISSUED BY RAJIV GANDHI UNIVERSITY OF
HEALTH SCIENCES, DATED 07.08.2025.
Exhibit P3 TRUE COPY OF PM-VIDYALAXMI COMMON EDUCATION
LOAN APPLICATION SUBMITTED BY THE
PETITIONER DATED 19.09.2025
Exhibit P4 TRUE COPY OF PETITIONER'S LOAN APPLICATION
REJECTED BY SYSTEM DATED NIL
Exhibit P5 TRUE COPY OF CIBIL SCORE & REPORT OF
PETITIONER’S FATHER, MANAKSHA KOCHUMUTTOM
DATED 13.10.2025 SHOWING HIS CREDIT
FACILITY STATUS, ‘WRITTEN OFF’ BUT HIS
SCORE IS 703
Exhibit P6 TRUE COPY OF REGISTERED LAWYER NOTICE
ISSUED TO THE 1ST RESPONDENT TO CHANGE THE
PETITIONER’S FATHER’S CREDIT STATUS SO AS
TO AVAIL THE EDUCATIONAL LOAN, DATED
05.11.2025
Exhibit P7 TRUE COPY OF ACKNOWLEDGEMENT CARD DULY
SIGNED BY THE 1ST RESPONDENT DATED
10.11.2025.
WP(C)Nos.40358/2025 and con.cases
37
2026:KER:51085
APPENDIX OF WP(C) NO. 4667 OF 2026
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE CERTIFICATE ISSUED BY THE
BOARD OF HIGHER SECONDARY EXAMINATION WITH
THE REGISTER NO 23411733
Exhibit P2 TRUE COPY OF THE LETTER DATED 05/11/2025
ALONG WITH THE DETAILED DOCUMENTATIONS AND
SCHEDULE OF FEE STRUCTURE RECEIVED FROM THE
NETHAJI SCHOOL OF NURSING, MANNAGUDDA,
MANGALURU, KARNATAKA STATE
Exhibit P3 THE TRUE COPY OF THE RELEVANT PAGES OF THE
ONLINE APPLICATION SUBMITTED BEFORE THE 1ST
RESPONDENT BANK BY THE PETITIONER ALONG
WITH HER FATHER
Exhibit P4 A TRUE COPY OF THE CREDIT GUARANTEE FUND
SCHEME FOR EDUCATIONAL LOANS ISSUED BY THE
MINISTRY OF HUMAN RESOURCE DEVELOPMENT
(DEPARTMENT OF HIGHER EDUCATION)
Exhibit P5 TRUE COPY OF THE REPRESENTATION SUBMITTED
BY THE PETITIONER BEFORE THE 1ST RESPONDENT
DATED 19/01/2026
Exhibit P6 TRUE COPY OF THE REPRESENTATION SUBMITTED
BY THE PETITIONER BEFORE THE 2ND RESPONDENT
DATED 19/01/2026
Exhibit P7 TRUE COPY OF THE JUDGMENT OF THIS HONORABLE
COURT IN W P C NO 21484/2009 DATED
12/04/2011
WP(C)Nos.40358/2025 and con.cases
38
2026:KER:51085
Exhibit P8 TRUE COPY OF THE JUDGMENT OF THIS HONORABLE
COURT IN W P C NO 27948/2013 DATED
07/04/2014
Exhibit P9 TRUE COPY OF THE JUDGMENT OF HONOURABLE
COURT DATED 05/04/2024 IN WPC NO 1895/2023
Exhibit P10 True copy of the letter No OR/17912/ 2025-
26 dated 04/03/2026 issued by the Branch
Manager of the Union Bank in relation with
the loan number 560381000241427
Exhibit P11 True copy of the letter No OR/17912/ 2025-
26 dated 04/03/2026 issued by the Branch
Manager of the Union Bank in relation with
the loan number 560941000038995
Exhibit P12 True copy of the CIBIL REPORT availed from
the online application
Exhibit P13 True copy of the letter dated 14/03/2026
submitted by the petitioner before the 2nd
respondent along with the annexed documents
Exhibit P14 True copy of the notarized affidavit
submitted by the petitioner before the 2nd
respondent
RESPONDENT ANNEXURES
ANNEXURE R1(a) True copy of the communication dated
21.01.2026 showing reasons for return of
the application by the processing center
ANNEXURE R1(b) True copy of the relevant portion of the
master circular as regards educational loan
WP(C)Nos.40358/2025 and con.cases
39
2026:KER:51085
updated as on 31.03.2024
ANNEXURE R1(c) True copy of the Judgment of this Honorable
Court in WPC 29966/2024 dated 14.10.2024
ANNEXURE R1(d) True copy of the Judgment of this Honorable
Court in WPC 3990/2023 dated 28.03.2023
ANNEXURE R1(e) True copy of the Judgment of this Honorable
Court in W.A. No.1000/2023 dated 06.06.2023
ANNEXURE R1(f) True copy of the Model Educational loan
scheme published by Indian Banks
Association 2001
WP(C)Nos.40358/2025 and con.cases
40
2026:KER:51085
APPENDIX OF WP(C) NO. 10522 OF 2026
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE SCHEDULE OF FEES DATED
8/10/2025 ISSUED BY MARIAN INSTITUTE OF
MANAGEMENT.
Exhibit P2 TRUE COPY OF THE ADMISSION CARD DATED
08/10/25 ISSUED FROM MARIAN INSTITUTE OF
MANAGEMENT AT KUTTIKKANAMON.
Exhibit P3 TRUE COPY OF THE PROVISIONAL CERTIFICATE
DATED 30/05/24 ISSUED BY MAHATMA GANDHI
UNIVERSITY.
Exhibit P4 TRUE COPY OF THE LETTER DATED 29/01/26
ISSUED BY 1ST RESPONDENT.
Exhibit P5 TRUE COPY OF THE LETTER DATED 26/02/26
ISSUED BY 2ND RESPONDENT.
RESPONDENT ANNEXURES
ANNEXURE R1(a) True copy of the Indian Banks Association
Model Educational Loan Scheme updated as on
2022
ANNEXURE R1(b) True copy of the relevant portion of the
Master Circular updated as on 31.03.2024
ANNEXURE R1(c) True copy of the Judgment of this
Honourable Court in WPC 19248/2019 dated
03.12.2019
WP(C)Nos.40358/2025 and con.cases
41
2026:KER:51085
ANNEXURE R1(d) True copy of the Common Judgment of this
Honourable Court in W.A 1171/2023 and W.A.
1174/2023
ANNEXURE R1(e) True copy of the Judgment of this
Honourable Court in WPC 29966/2024 dated
14.10.2024
ANNEXURE R1(f) True copy of the Model Educational Loan
Scheme 2012 published by the Indian Banks
Association
ANNEXURE R1(g) True copy of the Model Educational Loan
Scheme 2015 as amended up to 2016 published
by the Indian Banks Association
ANNEXURE R1(h) True copy of the Model Educational Loan
Scheme 2021 published by the Indian Banks
Association
ANNEXURE R1(i) True copy of the relevant pages of the
Manual of Loans and advances dated
30.09.2020
ANNEXURE R1(j) True copy of the relevant portion of the
Circular issued by the Bank regarding the
grant of educational loans dated 31.03.2022
WP(C)Nos.40358/2025 and con.cases
42
2026:KER:51085
APPENDIX OF WP(C) NO. 15675 OF 2026
PETITIONER EXHIBITS
Exhibit-P1 A TRUE COPY OF THE APPLICATION FORM ALONG
WITH ANNEXURES FOR EDUCATION LOAN SUBMITTED
BY THE PETITIONER BEFORE THE RESPONDENT
DATED NIL.
Exhibit-P2 A TRUE COPY OF THE MESSAGE SHOWING THE LOAN
APPLICATION VIDE NO. A20260223000067099
REJECTED DATED NIL.
Exhibit-P3 A TRUE COPY OF THE LOAN APPLICATION STATUS
AS REJECTED DATED NIL.
Exhibit-P4 A TRUE COPY OF THE JUDGMENT DATED
03.07.2020 IN W.P.(C) NO. 10968/2020 OF
THIS HONOURABLE COURT.
RESPONDENT ANNEXURES
ANNEXURE R1(a) True copy of the statement filed in WPC
10522 of 2026 without annexures
WP(C)Nos.40358/2025 and con.cases
43
2026:KER:51085
APPENDIX OF WP(C) NO. 19554 OF 2026
PETITIONER EXHIBITS
Exhibit P1 THE TRUE COPY OF THE CERTIFICATE ISSUED BY
BOARD OF HIGHER SECONDARY EXAMINATION,
GOVERNMENT OF KERALA .
Exhibit P2 THE TRUE COPY OF THE ADMISSION LETTER DATED
8.05.2026 ISSUED FROM SHRI MARUTI COLLEGE
OF NURSING, KARNATAKA .
Exhibit P3 THE TRUE COPY OF BONAFIDE CERTIFICATE DATED
8.05.2026 ISSUED FROM SHRI MARUTI COLLEGE
OF NURSING, KARNATAKA
Exhibit P4 THE TRUE COPY OF THE FEES STRUCTURE DATED
8.05.2026 ISSUED FROM SHRI MARUTI COLLEGE
OF NURSING, KARNATAKA
Exhibit P5 THE TRUE COPY OF THE CERTIFICATE DATED
4.11.2025 ISSUED BY THE INDIAN NURSING
COUNCIL.
Exhibit P6 THE TRUE COPY OF THE CERTIFICATE OF
AFFILIATION ISSUED BY THE KARNATAKA STATE
NURSING COUNCIL, BENGALURU, KARNATAKA.
Exhibit P7 THE TRUE COPY OF THE LOAN APPLICATION DATED
19.05.2026 SUBMITTED BY THE PETITIONER.
Exhibit P8 THE TRUE COPY OF THE LETTER DATED
20.05.2026 ISSUED BY THE RESPONDENT BANK
