One Time Settlement Funding (OTS) - All you need to know

 A borrower who fails to service their loan and is incapable of generating adequate resources in the foreseeable future may have recourse to a one-time settlement to pay their dues. Banks need to work toward settling non-performing assets according to RBI’s guidelines, which require them to negotiate and settle outstanding loans based on the value of the assets mortgaged by the borrower. One Time Settlement (OTS) Funding for a loan can be availed of either in part or in full based on the borrower’s requirements, cash flows of the business and the value of collaterals, among other considerations.



The settlement plans for NPAs vary by industry: MSME, agro-industries and others, for instance, will have different settlement arrangements.


Original source : https://www.resurgentindia.com/one-time-settlement-funding-all-you-need-to-know

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