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Govt brings OTS scheme for borrowers of coop societies

Panaji: Over one lakh borrowers who have availed of loans from various cooperative credit societies will directly benefit from the one-time settlement ( OTS ) scheme notified by the state government on Friday, cooperative minister Govind Gaude said. In addition, 50% of the non-performing assets ( NPA ) of these credit cooperative societies will be reduced, he said.



The scheme shall be applicable to all the primary agricultural credit, multipurpose, urban cooperative credit societies registered in Goa and are in credit and deposit business, Gaude told TOI.

All the loans which are doubtful and classified as NPAs up to March 31, 2015, shall be eligible for benefit under the OTS scheme.

However, the loans availed by the sitting directors, members of the managing committee, ex-directors and their family members as defined under the act and employees of the society shall not be covered under the scheme.

“It shall be the discretion of the board to decide on merit and within the guidelines of the OTS scheme which loans are to be considered or rejected,” the notification read.

The borrowers who are availing benefits under the OTS scheme shall not be entitled for any type of facilities or exemption in relation to any other loan repayment, they shall also not be eligible to stand surety to any type of loans advanced by the society for the next 6 years.

The last date of application to avail the OTS shall be decided by the board, however, the same shall not be extended beyond six months from the date of issue of revised guidelines. An applicant shall deposit 10% of the loan amount as it stands on the cut-off date of classifying his loan and interest as doubtful-I, then the board of directors will scrutinise the application and take a decision.

“The decision taken by the BOD under this OTS scheme shall be communicated to the concerned applicant within 30 days from the date of such decision. In case the society refuses any such applications, the refusals shall be communicated with the reasons for non-acceptance of the application and 10% amount of loan received along with application from the loanee member shall be credited to the principle loan of that loanee. In no case, the amount shall be adjusted towards the interest,” the notification read.

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