38.6c New Delhi, India, Thursday, July 18, 2024

Karnataka HC Issues Notice to the Government to Extend Moratorium Period of Education Loan to All Students

By Saransh Awasthi      20 August, 2020 07:47 PM      0 Comments
Karnataka HC Issues Notice to the Government to Extend Moratorium Period of Education Loan to All Students

The Karnataka High Court has recently issued a notice to the State and Union governments, and the Reserve Bank of India in a Public Interest Litigation (PIL) seeking the extension of the moratorium period of the education loans to all students in view of the unfortunate financial constrains in the COVID-19 pandemic. 

A Division Bench comprising of Chief Justice Abhay Shreeniwas Oka and Justice Ashok S Kinagi passed the order on the petition filed by Dr. Ram Manohar Lohiya Thinker Forum, Bengaluru. However, the bench refused to consider two other prayers, made in the petition, seeking a waiver of either outstanding or interest amounts. 

The petition pointed out the adverse effects on the countrys economy in light of the ongoing pandemic, and that even the student community has been hit hard. It asked the Honble Court to direct the Union and State governments to either waive outstanding education loans with effect from March 1, 2020 or waive the interest amount on all education loans for two years. 

The plea stated that in 2009, the Government of India had come up with Central Sector Interest Subsidy Scheme (CSIS) to ensure that no person is denied the opportunity of pursuing higher education because of any sort of financial insufficiency. The scheme provided full interest subsidy during the moratorium period on modern education loans without any collateral or third-party guarantee.

Further, the petition highlighted that in the scheme, the interest payable during the moratorium period, that is the course period and one year additionally, would be payable by the government in the case of students belonging to economically weaker sections. 

The plea sought directions to the Karnataka Government to extend the moratorium available to students belonging to economically weaker sections for repayment of educational loans under CSIS to all students, without any exception. Currently, the scheme is applicable to all those persons whose parents have an annual income of less than 4.5 lakh per annum.

The High Court accepted the prayers for the grant of extension seeing the unprecedented situation and circumstances that have occurred due to the pandemic and subsequently an order was issued to extend the moratorium period. However, the court denied issuing any directions to the Union and State governments to either waive outstanding education loans or to waive the interest amount on all education loans.

The matter will be heard further on September 4.

Share this article:

Leave a feedback about this

Trending Know The Law
Zero FIR: Here’s all you need to know!

Understanding Zero FIR: Bharatiya Nyaya Sanhita Section 154 allows FIR at any police station. E-FIR under Section 173 ensures efficient crime reporting in India.

17 July, 2024 01:25 PM
Trending Judiciary
Judicial activist Ashwini Upadhyay asks SC to declare amendment to Preamble as unconstitutional

Judicial activist Ashwini Upadhyay petitions SC to declare the 42nd Amendment to the Preamble, which added "Socialist," "Secular," and "Integrity," as unconstitutional.

17 July, 2024 05:14 PM


Trending Judiciary
Bombay High Court denies interim relief in plea against 1 year Pan Masala Ban [Read Order]

Bombay High Court denies interim relief to petitioners challenging the 1-year ban on pan masala, citing arguable questions and ongoing similar cases.

12 July, 2024 10:00 AM
Trending Judiciary
SC Collegium recommends appointment of Chief Justices of eight High Courts [Read Order]

SC Collegium recommends appointments of Chief Justices for Delhi, Himachal Pradesh, J&K, Kerala, Madhya Pradesh, Madras, and Meghalaya High Courts.

12 July, 2024 10:55 AM
Trending Judiciary
SC orders interim bail for Kejriwal in ED case, refers issues on arrest to larger bench

SC grants interim bail to Kejriwal in ED case, refers arrest issues to larger bench; AAP leader remains in jail due to separate CBI arrest in liquor scam.

12 July, 2024 11:21 AM
Trending Judiciary
Hathras incident: SC refuses to consider PIL on inquiry, adequate compensation

Supreme Court declines PIL on Hathras stampede inquiry and compensation, directs petitioner to approach High Court for addressing the issue.

12 July, 2024 01:38 PM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email