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 ...