Central Bank gets notice for harassing loan recipient

The National Human Rights Commission has issued notice to the chairman of Central Bank of India for harassing the beneficiary of education loan and her family in Nilgiris district.

Taking cognizance of a complaint, the NHRC observed that "enforcing the practice of ‘name and shame rules" in educational loans would amount to serious violation of human rights.

The ailing father of the loan recipient died due to shock as he received threatening phone calls from the bank despite having paid half of the loan amount in the first month though she had 120 instalments.

Justice D Murugesan, Member, NHRC also observed that publishing photographs of parents and students (defaulters) would potentially expose students to irreparable loss, injury and prejudice.

The bank seems to believed that shaming defaulters would pressurise them to pay back the loan.

“Such display of photographs of defaulters of education loans (who normally come from poor families and particularly rural areas) would certainly amount to loss of their dignity apart from violation of their human rights,” the commission said.

The Commission issued notices to Central Bank Chairman, its Central Office in Mumbai, Nilgiris district magistrate and superintendent of police and Central Bank Manjoor branch in the district calling for a report within four weeks.

The student said in her complaint that she took Rs 2 lakh loan from Central Bank’s Manjoor branch to complete her BE course.

She completed the course in 2013. According to the model IVA scheme, the repayment begins from July 2014 after the moratorium period.