PANAJI: Managing Director of EDC (Economic Development Corporation of Goa) SV Vernekar, has informed that as many as 25 borrowers have approached EDC for loan settlement under a one-time-settlement (OTS) scheme, which was launched two months ago.
Vernekar said, "Of the 25 cases, we have already begun processing 15 cases."
Sometime ago, EDC had come out with an OTS scheme to recover its non-performing assets (NPAs) on account of term loans it had given more than 15 years ago. Under this scheme, EDC had offered some concessions to the borrowers so that they come forward and settle the pending loans.
There were 174 such cases on which principal due to EDC was around Rs 4.2 crore. In an event borrowers don't come forward for settlement under the OTS scheme, EDC will have no other option but to initiate legal proceedings against each and every borrower.
Taking legal route to recover NPAs is always time-taking and cumbersome. In order to avoid that, EDC had announced the OTS scheme. There were three categories of term loans under the scheme.
First category was of loans of upto Rs 15 lakhs, which were disbursed between 15 years and 20 years ago. On this category, the borrower had to pay only the original principal amount less the amount received from him. In nutshell, EDC was asking borrowers to pay only the principal due and not the interest.
The second category was of loans upto Rs 15 lakhs, which were disbursed between 20 and 25 years ago. In such cases, EDC was asking borrowers to pay only 75% of the original principal amount less the amount received from them already.
The third category was of loans upto Rs 15 lakhs, which were more than 25 years ago. In such cases, EDC was asking borrowers to pay only 50% of the original principal amount less the amount received from them already.
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WHAT'S OTS SCHEME
* To recover its non-performing assets on account of term loans it had given over 15 years ago, the EDC had come out with an OTS scheme
* Under this scheme, the EDC had offered some concessions to the borrowers so that they come forward and settle the pending loans
* If borrowers don't come forward for settlement under the OTS scheme, EDC will have no other option but to initiate legal proceedings
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TOTAL CASES: 174
DUE: Nearly Rs 4.2 cr
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