Team Goemkarponn
Panaji: The Government of Goa has announced a One-Time Settlement (OTS) Scheme to provide relief to beneficiaries of the Interest Free Education Loan (IFEL) Scheme by waiving penal interest charged due to delayed repayments. The scheme will come into effect from February 1, 2026, and will remain in force until July 31, 2026.
The IFEL Scheme has been implemented by the Goa Education Development Corporation (GEDC) since 2005 to support students pursuing higher education. While a large number of beneficiaries have repaid or are regularly repaying their loans, several borrowers were unable to do so on time due to factors beyond their control, resulting in the levy of penal interest.
The newly introduced OTS aims to offer relief to such defaulting beneficiaries and facilitate closure of loan accounts.
Under the scheme, beneficiaries who are beyond the payback period can settle their loans by paying the outstanding principal along with a reduced interest component—5 per cent if paid within two months, 10 per cent within four months, and 15 per cent within six months.
For beneficiaries who are still within the payback period, the scheme provides complete waiver of penal interest, provided all unpaid EMIs are cleared within three months and subsequent instalments are paid as per the repayment schedule.
Additionally, cases where beneficiaries have already repaid the entire principal amount and only penal interest remains outstanding will be closed. However, penal interest paid prior to the notification of the scheme will not be refunded. Such beneficiaries may apply to GEDC for a “No Dues Certificate”.
As per official estimates, around 1,402 defaulting beneficiaries are expected to benefit from the OTS, with the total outstanding amount pegged at approximately ₹21.30 crore.
Beneficiaries wishing to avail of the scheme must submit their applications along with repayment details within the stipulated period of the scheme.
