Question 1

Can an NPA account be settled?

Accepted Answer

Yes. RBI's prudential framework allows every bank to sanction One Time Settlements on NPA accounts. The right proposal — with financial justification, security valuation and a clear payment plan — routinely closes accounts at a meaningful discount to the outstanding demand.

Question 2

How does One Time Settlement (OTS) work?

Accepted Answer

OTS is a written proposal filed with your bank's sanctioning committee to close the account at a discounted, one-time payment. The committee reviews eligibility, security cover, hardship and the source of funds — then sanctions a settlement amount and payment schedule that, when paid, is followed by an NOC and CIBIL update.

Question 3

Can businesses negotiate NPA loans?

Accepted Answer

Yes — cash credit, overdraft, term loans, working capital and project finance NPAs are all negotiable through OTS or restructuring. For MSMEs, RBI's 2019 OTS scheme and MSME restructuring framework provide additional leverage.

Question 4

Can SARFAESI cases be settled?

Accepted Answer

Yes. A pending SARFAESI action does not block OTS — in fact, a credible OTS proposal is standard leverage to defer 13(4) possession and auction. Where possession is imminent, a DRT-SA is filed in parallel to obtain interim relief while commercial talks continue.

Question 5

How long does an NPA settlement usually take?

Accepted Answer

Straightforward retail settlements can close in 30–60 days. Business, MSME and commercial OTS typically take 60–120 days depending on the committee level and the volume of documentation. We share a realistic timeline in the free case review.

Question 6

Which banks do you cover?

Accepted Answer

All major PSU banks (SBI, PNB, BoB, Canara, Union, BoI, IOB, Indian Bank), leading private banks (HDFC, ICICI, Axis, Kotak, IndusInd, Yes Bank, IDFC First, Federal), most NBFCs (Bajaj Finance, Tata Capital, Aditya Birla, Hero Fincorp) and major ARCs (Edelweiss, Phoenix, Arcil, Reliance ARC).

Question 7

Will settlement affect my CIBIL score?

Accepted Answer

A settled account reports as 'Settled' for seven years — but with the right post-settlement credit behaviour, most borrowers see scores recover to 700+ within 12–24 months. We share a structured CIBIL rebuild plan on closure.

Question 8

How much discount can I expect on my OTS?

Accepted Answer

Discounts vary by loan type, security cover, NPA age and the bank's committee matrix. Indicative ranges from real engagements: unsecured personal loans 40–60%, credit cards 50–70%, business loans 25–45%, home loans 20–35% and LAP / commercial 30–50%.

Question 9

What documents do I need for a case review?

Accepted Answer

Latest account statement, sanction letter, the last bank notice (13(2), 13(4) or recall), security papers, any prior OTS correspondence and a short hardship narrative. That is enough for a written assessment.

Question 10

Do I have to visit your office?

Accepted Answer

No. Every engagement is handled remotely — video calls, secure document upload and courier of physical papers when needed. Local panel advocates appear before DRT / DRAT on your behalf.

Question 11

How are your fees structured?

Accepted Answer

A fixed advisory fee at engagement plus a success component on the savings achieved. Everything is quoted in writing before you sign — no hidden charges, no bank commissions.

Question 12

Can guarantors be released from liability?

Accepted Answer

Yes. A well-structured settlement typically releases both the primary borrower and the personal guarantor — the sanction letter and NOC should specifically extend to all obligants. We check this before payment.

Question 13

What happens if my property is already listed for auction?

Accepted Answer

Two parallel tracks: a Securitisation Application (SA) before DRT for interim relief and an urgent OTS proposal to the sanctioning committee. Acting within the first 30 days of auction notice materially improves the outcome.

Question 14

Can I settle a loan with an ARC?

Accepted Answer

Yes. ARCs (Asset Reconstruction Companies) are commercial buyers of stressed loans — negotiation dynamics differ from banks (they focus on IRR), but structured OTS with ARCs is routine and often closes faster than with the original lender.

Question 15

Is settlement available for agricultural or KCC loans?

Accepted Answer

Yes, subject to the specific state / bank scheme. Agri and KCC accounts often qualify for periodic OTS schemes with meaningful concessions on interest.

Question 16

Can I take a fresh loan after settlement?

Accepted Answer

A settled account restricts unsecured credit for the initial 12–18 months, but secured products (home loans, LAP) and NBFC funding are usually accessible sooner. Cleaner options open up as the CIBIL score recovers.

Question 17

What is the difference between OTS and restructuring?

Accepted Answer

OTS closes the account at a discount with a one-time payment. Restructuring keeps the loan alive with revised tenure, EMI or moratorium. Choice depends on cash flow, security cover and the borrower's ability to keep servicing.

Question 18

Do you handle credit card and personal loan NPAs?

Accepted Answer

Yes. Credit card and personal loan settlements are handled routinely — being unsecured, they carry the highest discount potential (often 50–70%). We manage recovery-call harassment simultaneously.

Question 19

Can NRIs and expat borrowers engage you?

Accepted Answer

Yes. NRI engagements are handled entirely remotely with power of attorney where required. Payments can be structured through NRO / NRE routes consistent with FEMA guidance.

Question 20

What if the bank has already obtained a Recovery Certificate from DRT?

Accepted Answer

A Recovery Certificate does not close the door — OTS remains available even after decree. In fact, banks often become more receptive once enforcement costs and delays become real.

Question 21

How do you keep information confidential?

Accepted Answer

Engagements are backed by a written NDA. Documents are stored on encrypted infrastructure. Identities are never used in marketing or case studies without explicit written consent.

Question 22

Do you offer help with CIBIL correction?

Accepted Answer

Yes — post-settlement CIBIL update, correction of misreported statuses (Willful Defaulter, Written-off vs Settled) and structured score-rebuild plans are part of the engagement scope.

Question 23

Can two or more lenders be settled together?

Accepted Answer

Yes — a sequenced multi-lender strategy is often the right approach when cross-default has been triggered. We map exposures, order the negotiations and manage source-of-funds across banks.

Question 24

What if I cannot pay the sanctioned OTS in one shot?

Accepted Answer

Committees routinely sanction phased OTS — a down-payment plus 2–4 quarterly instalments. We build the phased schedule into the proposal itself, so you don't have to renegotiate later.

Question 25

How do I get started?

Accepted Answer

Book a free case review — share your bank, loan type, outstanding amount and current status. A senior advisor reviews the file confidentially and comes back within one working day with a written view and a clear fee quote.

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