How State Bank of India evaluates an OTS proposal
State Bank of India 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 State Bank of India
Most State Bank of India 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 State Bank of India'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.