Justice PV Kunhikrishnan of the Kerala High Court observed that banks should not deny education loans to students just because of low CIBIL scores. In the case of Noel Paul Fredy v State Bank of India, the Court observed that students are "nation builders of tomorrow" and thus when they are applying for loans, it should be seen with a human outlook. Thus the Court upheld that the application for bank loan should not have been rejected by the bank.

A student's CIBIL score was merely 560 when he applied for a student loan in SBI and the bank had rejected his application. The student had earlier taken two loans, one which was written off and the other was overdue for Rs. 16,667. KK Chandran Pillai appeared on behalf of the bank. He said that the circulars of SBI, the  Credit Information Companies Act, 2005, the Credit Information Companies Rules, 2006 does not allow disbursement of loans in such a situation.

George  Poonthottam appeared for the student and requested for the laon to be immediately disbursed, as he might get in trouble without the amount of money. The Counsel for the Petitioner also mentioned that the Petitioner already has a job offer which shall enable him to repay the loan. The Court also mentioned that the argument favours the petitioner who is going to complete the course on 31 May and shall soon be able to join the job.

Listening to both sides of the arguments, the Court said that "there will be a direction to the respondents to sanction and disburse the education loan of ₹4,07,200 to the College of the petitioner forthwith." Counter affidavits and early hearing plea has been allowed by the Court in case the bank wanted to.