One Time Settlement
Negotiate a One Time Settlement on commercially sensible terms
Structured OTS proposals — backed by financial justification and the right escalation path — close NPAs at meaningful discounts to outstanding dues.
Legally reviewed by
NPA Experts Legal Review PanelEmpanelled counsel practising before DRT, DRAT and High Courts
This page is for general information. It is not legal, tax or investment advice. Every NPA / SARFAESI / DRT matter is fact-specific — speak to a qualified advisor before acting.
Who this is for
- Borrowers with NPA-classified accounts
- Guarantors and co-applicants exposed to recovery action
- Businesses with unviable debt but recoverable assets
Benefits
Lower total outflow
Typical OTS closures settle 20–45% lower than outstanding dues.
Full account closure
No-Dues Certificate, security release and CIBIL update.
Faster resolution
Most cases close within 3–6 months of engagement.
Protect assets
Stops SARFAESI auction and parallel proceedings.
Process
- 1Eligibility & financial reviewWe map account status, security, prior offers and your repayment capacity.
- 2Drafting the proposalFinancial justification, comparable settlement benchmarks and source-of-funds plan.
- 3Submission & escalationFiled with the correct sanctioning authority; escalated as needed.
- 4Negotiation roundsCounter-offers, committee briefings and structuring of payment plan.
- 5Sanction & paymentSanction letter, timed payments and security release.
- 6Closure & bureau follow-upNOC and CIBIL status correction.
Frequently asked questions
Case Study · Illustrative
OTS settled at 58% of principal in 5 months
Mid-sized manufacturer · ₹4.2 Cr outstanding · Secured by industrial plot · PSU bank.
Outcome: Sanction received, payment scheduled in three tranches, NOC issued, CIBIL updated as Settled.
Topical authority
Explore this topic across NPA Experts
Curated bridges between our services, pillar guides, deep-dive articles and bank-specific playbooks on the same topic.
Related services
Pillar guides
- NPA Settlement — Pillar GuideEnd-to-end NPA settlement playbook across secured and unsecured exposures.
- One Time Settlement — Pillar GuideOTS process, discounts, documents, CIBIL impact and rejection recovery.
- Loan Restructuring — Pillar GuideTenor, rate and moratorium restructures for viable but stressed borrowers.
Deep-dive articles
- One Time Settlement — Complete GuideOTS framework, sanctioning matrix, discount benchmarks and CIBIL update.
- ARC Settlements — ExplainedWhy loans move to ARCs, how negotiation differs, and typical discount ranges.
- Loan Restructuring vs OTS — Which Is Right?Decision framework based on cash flow, security, age of NPA and lender stance.
- NPA Classification Rules in IndiaSMA-0/1/2 to NPA (substandard/doubtful/loss) — the RBI classification ladder.
Bank-specific playbooks
- PNB NPA Settlement GuidePSU sanctioning ladder, RBI circular map and PNB-specific settlement bands.
- Axis Bank Settlement ProcessEnd-to-end Axis Bank settlement workflow with escalation matrix.
- Bank of Baroda Settlement FAQsCommon BoB settlement rejections and how to reposition the proposal.
- HDFC Bank Personal Loan SettlementUnsecured personal-loan settlement discount bands with HDFC recovery cells.