In a major relief to over 1400 beneficiaries of the Interest Free Education Loan (IFEL) scheme, the State government has introduced a One Time Settlement (OTS) to provide waiver from payment of penal interest. The OTS will be in force for a period of six months with effect from February 1.
As per a press note issued by the Chief Minister’s Office (CMO), approximately 1,402 defaulting beneficiaries are expected to come under the ambit of the OTS scheme, with the total outstanding amount involved estimated at around Rs 21.30 crore.
The IFEL scheme, implemented by the Goa Education Development Corporation (GEDC) since 2005, has supported a large number of students pursuing higher education. While many beneficiaries have repaid or are in the process of repaying their loans, several accounts turned irregular, resulting in the levy of penal interest as per scheme norms.
Under the OTS scheme, beneficiary loanees can regularise and close their loan accounts by paying the outstanding principal along with reduced interest, depending on the timeline of repayment.
For beneficiaries who are beyond the payback period, three repayment options have been provided. Those who settle their dues within two months will be required to pay the outstanding principal along with 5 per cent interest on the principal outstanding. If repayment is made within four months, the amount payable will be the outstanding principal with 10 per cent interest, while those opting to settle within six months will have to pay the outstanding principal along with 15 per cent interest.
For beneficiaries who are still within the payback period, the scheme allows settlement within three months by paying all unpaid EMIs up to date as per the repayment schedule. In such cases, the entire penal interest charged due to non-payment of EMIs will be waived off. However, subsequent EMIs will have to be paid regularly as per the schedule.
The government has clarified that in the cases where beneficiaries have already completed repayment of the principal amount and only penal interest remains outstanding will be closed under the scheme. However, penal interest already paid prior to the notification of the OTS scheme will not be refunded.
Beneficiaries who avail of the scheme will also be eligible to apply for a ‘No Dues Certificate’ from the GEDC after closure of their loan accounts.
