CUDDALORE: A bank that demanded repayment Rs 21 lakh education loan from a man, even after his son’s death, has been ordered to pay Rs 55,000 as compensation for ‘deficiency of banking service.’
The Cuddalore district consumer disputes redressal forum, comprising its president D Gopinath and members V N Parthiban and T Kalyani issued the direction to Indian Bank’s Chidambaram branch, pointing out that it was the bank which had erred in not deducting the insurance premium before releasing the education loan amount to the student.
According to N Kumar, 60, of Chidambaram, he had availed himself of an educational loan of Rs 21 lakh from Indian Bank to fund his son’s MBBS course in a private college in 2016. He said the bank assured him and his son that they would provide insurance cover under IB Vidyarthi Suraksha Policy that would cover the loan in case of his death or his son's death, or both, and that it would entirely liquidate the loan.
