One-time relief scheme for 1.4k education loan defaulters, Rs 21 crore outstanding

Panaji: The Goa Education Development Corporation (GEDC) introduced the interest free higher education loan scheme for Goa students in 2005. While many made timely repayment of the loans, 1,402 students have defaulted on the repayment, amounting to a total sum of Rs 21.3 crore.

Now, to ease the process of repayment of the loan amount for these students, the GEDC has come out with a one-time relief scheme. To avail benefit, the 1,402 students have to apply between Feb 1 and July 31, 2026, informing the GEDC of one of the repayment options the student choses.

The GEDC has said that for those loanees who are within the payback period, but may have defaulted on their EMIs, within three months they can pay all the unpaid EMIs till that date. If this is done within three months, the GEDC will waive off entire penal interest chargeable due to non-repayments of the EMIs. The student can then resume payment of the remaining EMIs as per the payment schedule.

The corporation has said that for those loanees who have completed repayment of the principal loan amount and only their penal interest payment is outstanding, the loan will be closed. The penal interest paid already prior to notification of the one-time relief scheme will not be refunded. But such beneficiaries can apply for ‘no dues certificate’ from the corporation, under the scheme.

If a beneficiary loanee is beyond the loan payback period, for them the scheme allows payment of the outstanding principal with an interest of 5% on the principal outstanding amount. This has to be done within a period of two months.

If such a beneficiary wants to avail the relief scheme within a period of four months, he or she will have to pay the outstanding principal with an interest of 10% on the principal outstanding amount. And if it is within six months, then the student will have to pay the outstanding principal amount with an interest of 15% on the principal outstanding.

“The objective of the scheme is to provide relief to the interest free education loan scheme beneficiaries who have not repaid their loan timely due to various reasons beyond their control. To be eligible under the one-time relief scheme, the beneficiary loanee shall pay the amount and apply within the timeline of the one-time relief scheme,” the GEDC said.