Hyderabad, Oct. 28 -- The Telangana State Consumer Disputes Redressal Commission has ruled that petitioners cannot be held liable for loan repayment when the Union Bank of India failed to specify the insurance duration under an education loan clearly.

The Commission held that it was improper for the bank to pressure the deceased student's parents to repay the loan.

The Commission upheld an earlier order of the District Consumer Commission that directed the bank to cancel the education loan and return all pledged documents to the borrowers without collecting any charges.

Case background

According to case details, N Venkatanarayana Swamy and his wife Raghavani from Hyderabad had obtained a loan of Rs 10 lakh from Union Bank of India for...