One Time Settlement of Bank Loans - Monei Matters

OTS- One-Time Settlement of your Loan Liability with your Bank.- Monei Matters

One-time settlement (OTS) is a tool used by lenders to recover dues from borrowers who have defaulted on their loan repayments. The lender agrees to accept a lower amount than the total outstanding balance as a full and final settlement of the loan account. The borrower has to pay the agreed amount within a specified time period to close the account and avoid legal action.


The benefits of OTS are:

- It can help you get rid of your debt burden and improve your credit score.
- It can save you from paying additional interest, penalties, and legal fees.
- It can reduce your stress and anxiety related to your loan repayment.
- It can help you avoid bankruptcy and its negative consequences.

The Reserve Bank of India (RBI) has issued detailed guidelines for OTS and technical write-offs of loans for all regulated entities, such as commercial banks and urban cooperative banks. These guidelines aim to streamline the process, ensure accountability, and maximize recovery while minimizing expenses. Some of the key features of the RBI guidelines are:

- Compromise settlements for fraud or wilful defaulters must receive approval from the board of the regulated entity.
- In cases where the payment period for a compromise settlement exceeds three months, it will be treated as a restructuring.
- Compromise settlements, along with technical write-offs, need to be approved either by the Managing Director and CEO or a board-level committee and subsequently reported to the board.
- Borrowers opting for an OTS are subject to a cooling period of at least 12 months for farm credit exposures. During this period, regulated entities cannot assume fresh exposures with these borrowers.
- When there are ongoing judicial recovery proceedings against a borrower, any settlement reached must be approved by the judicial authorities.



Our company, Monei Matters, is a leading financial consultancy firm that specializes in helping borrowers with loan settlement solutions. We have been in this business for over 10 years and have a network of contacts with various lenders across the country. We have a proven track record of successfully negotiating OTS deals for our clients and helping them save up to 80% of their outstanding loan amount. We also provide end-to-end support in documentation, payment, and closure of the loan account. We have a team of experienced professionals who have in-depth knowledge of the RBI guidelines and the legal aspects of OTS. We offer personalized service and tailor-made solutions to suit your specific needs and financial situation. Contact us today to find out how we can help you in OTS.

For more details:

Call: 9313803227 / 9311003227

Disclaimer: The information provided on this blog is for general informational purposes only. It is not intended to be a substitute for professional advice, diagnosis, or treatment. Always seek the advice of your qualified professionals with any questions you may have regarding your case involved for this purpose. Never disregard professional advice or delay in seeking it because of something you have read on this blog. The views and opinions expressed on this blog are those of the author and do not necessarily reflect the official policy or position of any other organization, agency, or company. The author is not liable for any errors or omissions in this information nor for the availability of this information. The author is not responsible for any losses, injuries, or damages arising from the display or use of this information.

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