Finance for One Time Settlement

OTS Finance Company

India's Leading

OTS FINANCE Company

OTS Finance Company is a financial platform dedicated to clients who are under Stress or NPA accounts and wish to close their NPA account liability &  wants to restart their financial journey.  We provide a finance facility for closing an NPA account total outstanding or NPA account settled under the One Time Settlement(OTS) scheme.

OTS Finance

OTS Finance is a loan granted by a financial institution to takeover a npa account liability settled under OTS scheme in order to restructure the npa account by giving sufficient repayment tenor & moratorium. OTS Finance is a tool to reduce previous npa loan financial liability, legal litigations & undesirable charges imposed by previous bank. Through OTS loan client can transfer his npa account in a new financing company to shred off all legal & financial litigations with previous bank. This new npa loan helps the client to completely remove npa status & to improve his scoring & rating that ultimately helps in taking loan from bank/nbfc’s in future.

One Time Settlement​

What is One Time Settlement?

One Time Settlement is a tool used by bank/nbfc to recover the outstanding  amount in a npa account by offering a discount on penalties & charges imposed on that account which encourages the borrower to repay the loan on reduced amount. Similarly a borrower can also independently approaches the bank and ask for one time settlement(OTS) for his outstanding total amount taking benefit of discounts & rebates offered by bank under OTS scheme.

 

Loan for One Time Settlement​

We provide Loans for paying One Time Settlements with borrowers previous bank through a new financing company that directly pays in order to close the NPA account liability settled under the OTS scheme giving restructured repayment plan & provide a fresh start for the borrower. This new loan provides an opportunity for the borrower to establish a fresh financial & rating agency profile which will be helpful in raising finance/loans from standard banks in the future. This new funding can be repaid through business accruals/income or in some cases, sale of collateral is also considered.

OTS Finance​

Advantages of One Time Settlement

The OTS scheme is typically offered when a borrower is facing financial difficulties and is unable to repay the loan in the regular manner. Instead of pursuing legal action or initiating recovery proceedings, the lender may propose an OTS to recover at least a portion of the outstanding amount.

The terms and conditions of an OTS vary depending on the specific situation and the policies of the lending institution. Generally, the borrower is required to pay a lump sum amount, which is usually less than the total outstanding debt. This reduced settlement amount is determined through negotiations between the borrower and the lender.

The advantage of an OTS for borrowers is that they can settle their debts at a lower amount and avoid the legal consequences of defaulting on the loan. It provides them with an opportunity to clear their liabilities and improve their creditworthiness. On the other hand, lenders benefit from an OTS by recovering at least a portion of the loan amount without going through lengthy legal proceedings.

It’s important to note that the availability and terms of an OTS may vary depending on the specific financial institution and the type of loan. If you are considering a one-time settlement, it is advisable to contact your lender or financial institution directly to inquire about their specific policies and procedures.

Types of OTS finance

  1. Loan Settlement OTS: This type of OTS is typically offered by banks or lenders to borrowers who are struggling to repay their loans. The lender may agree to settle the outstanding debt for a reduced amount, which is typically lower than the total loan amount. The borrower then pays the agreed-upon settlement amount to clear the debt.

  2. Credit Card Settlement OTS: Credit card companies may offer OTS options to customers who are unable to repay their credit card debts. In this case, the credit card issuer may agree to settle the outstanding balance for a reduced amount, which can be paid in a lump sum or in installments.

  3. Mortgage Settlement OTS: In situations where a borrower is facing difficulties in repaying their mortgage loan, a mortgage settlement OTS may be considered. The lender and borrower negotiate a reduced settlement amount, and upon payment of this amount, the borrower’s mortgage debt is considered settled.

  4. Business Debt Settlement OTS: Businesses that are struggling with multiple debts or facing financial distress may negotiate with their creditors for a business debt settlement OTS. This involves reaching an agreement with the creditors to settle the outstanding debts for a reduced amount, allowing the business to manage its financial obligations and avoid bankruptcy.

  5. Personal Loan Settlement OTS: Individuals who have taken personal loans and are unable to meet the repayment obligations may be eligible for a personal loan settlement OTS. The lender and borrower negotiate a reduced settlement amount, and upon payment, the personal loan debt is considered settled.

  6. Fund & Non-Fund Base Loan Settlement OTS: Companies that availed fund base like CC limits and non-fund facilities like invoice discounting & bank guarantees from the bank and their accounts slip into the NPA. Through the OTS tool, they can apply for settlement with a bank and avail a loan to clear the settlement amount

It’s important to note that the availability and terms of these OTS options may vary depending on the specific financial institution, the type of debt, and the borrower’s financial situation. If you are considering a one-time settlement, it is advisable to directly contact your lender or financial institution to inquire about the specific OTS options they may offer.

Role of OTS -one-time settlement in the Indian economy

In India, One Time Settlement (OTS) is an agreement between a borrower and a lender to settle a loan or debt with a one-time payment. The settlement amount is typically lower than the outstanding loan amount and is often negotiated to account for the borrower’s financial difficulties and the lender’s desire to recover as much of the loan as possible.

OTS is a popular option for borrowers struggling to make payments and facing the possibility of default. It can help borrowers avoid the negative consequences of default, such as damage to their credit score and legal action by the lender. It is also beneficial for lenders, as it allows them to recover some of their money without going through a lengthy and expensive legal process.

Public sector banks commonly offer OTS schemes, which are often under pressure from the government to reduce non-performing assets (NPAs) in their loan portfolios. Private sector banks and other financial institutions also offer OTS schemes, but the terms and conditions may vary.

Overall, OTS schemes play an important role in the Indian economy by helping borrowers, and lenders avoid default and maintain financial stability.

Role of collateral valuation in OTS approval by lender

Collateral valuation plays a crucial role in approving a one-time settlement by a lender. When a borrower defaults on a loan, the lender may offer a one-time settlement option to recover the debt. In such a situation, the collateral pledged by the borrower becomes an important factor in determining the settlement amount.

The collateral valuation helps the lender determine the asset’s current market value pledged by the borrower as collateral. This valuation is important because it helps the lender determine the amount of money that can be recovered from the asset’s sale in case the borrower defaults on the settlement.

The lender will typically hire an independent out-source valuer to value the collateral. The valuer will consider various factors, such as the condition of the asset, its age, location, and market demand to arrive at an accurate valuation. Based on the valuation, the lender will determine the settlement amount that the borrower can offer.

The collateral valuation also helps the lender assess the risk of offering a settlement. If the valuation of the collateral is low, the lender may offer a lower settlement amount or may not approve the settlement at all. On the other hand, if the collateral valuation is high, the lender may be more willing to offer a higher settlement amount.

In summary, collateral valuation is a critical component in the one-time settlement process as it helps the lender determine the settlement amount, assess the risk involved, and decide whether to approve the settlement.

Loan for Paying OTS

Loan for paying OTS is a new loan given for taking over the previous NPA loan liability which was settled under a one-time settlement with the previous banker. This helps our clients close the previous NPA loan financial & legal issues with their previous banker such that they enjoy a non-NPA status, a better-rescheduled repayment plan & freedom to move to standard banking in future.

Loan for Debt Settlement is also a loan given for closing the bad debts settled with the previous banker/nbfc. This new loan will be given by a RBI registered NBFC which directly closes the previous bad debt & takeover over the whole liability under this settlement. This loan facility is available in all major cities of India. 

NPA OTS Funding will be available for clients who applied or took a one-time settlement offer from their previous banker and now looking for partial to full financial assistance to pay their OTS. They can apply directly to us, and we will pay their previous banker under the OTS settlement scheme. Kindly contact us on a phone call so we can assist you with the procedure.

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office address

202 Parijat Pushpa CHS Ltd. old Mumbai Pune Road, Behind Mayur Hotel, Kharegaon Naka Kalwa West , Thane, Maharashtra- 400605

Registered Office

Office No. 453, 4th Floor, Cloud 9 Towers, Vaishali Sector-1, Ghaziabad, UP – 201010

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+91 8750088279

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