How HDFC Bank evaluates an OTS proposal
HDFC Bank reviews each OTS based on the age of NPA, security cover, repayment capacity and recoverable value through SARFAESI. Sanctioning powers rise with exposure — branch, zonal, head office or board level.
Typical OTS discount at HDFC Bank
Most HDFC Bank OTS approvals close between 55–80% of principal for secured loans, and 30–50% of outstanding for unsecured (personal, credit card) loans, with phased payment over 90–180 days.
Documents required
Loan account statement, latest CIBIL report, security valuation, income / business cashflow proof, source-of-funds plan, and a written hardship explanation tailored to HDFC Bank's template.
Step-by-step process
1. Eligibility check 2. Draft OTS proposal 3. Submit to correct sanctioning authority 4. Negotiation rounds 5. Sanction letter 6. Phased payment 7. NOC, security release & CIBIL update.
Common pitfalls
Filing at the wrong sanctioning level, weak financial justification, missing source-of-funds plan, and missing statutory windows under SARFAESI / DRT in parallel.