Don’t reject educational loan applications citing trivial reasons, unsatisfactory credit score: Collector tells bankers

District Collector Anand Mohan has warned the bankers of the district against denying educational loans to the students citing trivial reasons or unsatisfactory credit scores of their parents or the relatives.

Addressing the joint meeting of the bankers and the college representatives held at the Collectorate on Friday, he said poverty and non-availability of funds should not be a hurdle for the students, especially for students from disadvantaged background, to pursue their higher studies.

Hence, the banks should not reject educational loan applications of the students citing poor or unsatisfactory credit score as a reason. As this valid point had been underlined in the State-level bankers’ meeting held recently, the banks in the district should also follow this instruction and give loans to deserving students.

While educational loan target for Tirunelveli district for the current fiscal is ₹50 crore, only 300 applications had been received since April 1, 2026. Hence, the banks should give top priority for giving educational loans before March 31, 2027 and achieve the target by disbursing ₹Rs. 50 crore.

“In this direction, we’re organising awareness programmes to sensitize the students and their parents about the educational loans being given by the banks for their continued higher education. This exercise will encourage more number of students to apply for educational loans. On their part, the banks should prepare a schedule in consultation with the colleges and the district administration about organising educational loan camps in the colleges,” Mr. Anand Mohan said.

The Collector also said WhatsApp groups dedicated for giving educational loans would be created to share all information pertaining to availing this assistance. Moreover, the students should also be encouraged to submit their online applications for educational loans.

He asked the representatives of the schools and the colleges to explain in detail about educational loans being given by the banks and the methods of availing the assistance through special lectures.

“The educational loan applications should not be rejected for trivial reasons. The banks, after helping the students to get the documents from their educational institutions located in other districts or other States for releasing loans, should ensure the disbursal of loans within 30 days from the submission of applications,” the Collector said.

District Revenue Officer S. Vidhya and Lead District Manager Ganesh Manikandan were present.