OTS Finance

One Time Settlement Loan OTS Finance

Loan For One Time Settlement (OTS)

Fund Source India provides OTS Finance Loan to clients from partial to full amounts of One-time settlement within the stipulated OTS timeline. We pay directly to your previous bank and completely take over previous NPA loan liability settled under OTS. 

Our experienced team does the assessment of client business & underline securities and explore the best possibilities on the proposal. We are a company which works on the modern day solutions of financial market. We work symmetrically with the client to arrange & manage the documentation required in case to deliver or service the commitment. We funded in all major cities of the country. Through our support, clients positively meet out their goal of funding for OTS & restart their financial life.

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This can be used in various ways:

  • To pay directly to the bank
  • Can be utilized for partial payment or full payment
  • Clients having cases under DRT & NCLT can also take this facility
  • Available in PAN India

To avoid this situation, the borrower needs to repay this loan by anyhow. For this, the best way is to apply for an OTS in the bank. By way of a One-time settlement, borrowers can save a lot of money in the form of huge interest, legal charges & penalties.

OTS amount directly depends upon how old the is account, the valuation of collaterals, and the business status of the client. Suppose in case, the valuation is higher than the loan amount, then the settlement amount will be quite higher. Similarly, if an account is new then also finalized amount will be high.

What is One Time Settlement (OTS)?

One Time Settlement is a mutual & legal contract between a financial institution (bank) & its borrower to settle down a Non-Performing Loan (NPL) at a reduced price which is beneficial for both parties as the bank reduces its bad loans and the borrower gets rid of all the legal & financial issues associated with it. 

What is OTS Finance?

As per the name, OTS Finance is a loan given by any financial institution recognized by RBI (Reserve Bank of India) to an NPA borrower to take over his previous liability of NPA from bank/NBFC which was settled under one-time settlement(OTS) and giving him a structured repayment in form of EMI’s. This can be directly paid to the previous bank on behalf of the borrower through a new financial institution. This new loan depends directly on the nature & valuation of securities, income sources of the borrower, and settlement conditions.

NPA OTS Funding

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. NPA OTS Funding can be taken as Bridge Finance to convert from NPA account status to normal/standard account.

Once OTS gets approved by the bank, the borrower can approach the market for Finance. There are some institutes regulated by RBI, that can fund the entire or part of the settlement amount as per requirement and repaying capacity. It’s always better to hire a finance company like Fund Source for this as we have a team who are well knowledgeable & experienced on the subject and have ready connections.

Terms & Conditions:​

  • OTS can be fund fully or partially, depending upon the borrower’s requirement, collateral valuation, and business cash flow or sources of funds of the borrower.
  • Repayment can be taken from the cash flow of existing business or rental income.
  • Finance is available in all major cities of India.
  • Repayment tenure is given up to five years.
  • The mortgage created will be an equitable mortgage or in some very few cases, a registered mortgage can be done.
  • Normally, it takes 25-30 days to complete the transaction.
  • A moratorium period will be available.
  • The loan amount is directly payable to the previous bank/NBFC.

Client Testimonials

“Thorough professionals, Fund Source is one of the most efficient and trustworthy financial service company” –Kiran Dhanoa- Balwant Dhaba, Kolkata

“This is one of the few genuine places where OTS funding is done very fast and multiple options on repayment tenure are offered based on the business model. Hassle-free documentation and quick processing of funds have helped scale up our business even during tough COVID-19 pandemic times. Thank you fund source India” – Raghuram -Shanmuga Stores, Chennai

Ready to Take the First Step?

Don’t let financial burdens hold you back. Contact us today to schedule a consultation and take the first step towards a debt-free future.

Reach out to Vineet Kumar, our Financial Expert, at +91 9810218215 or vineet@fundsource.in. Connect with Vineet on LinkedIn to stay updated with expert insights.

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Faq's - OTS Finance

What happens if OTS fails?

If the borrower fails to service the OTS in a timely manner, then the bank reserves the right to cancel the OTS. As OTS is a legal & financial tool to recover the loan from the NPA borrower, and not paying the OTS within the deadline will be considered a breach of the agreement between the parties and allow the banks to cancel the OTS and forfeit the money deposited and adjust it once again toward the interest & penalties for which borrower has taken the waiver. Moreover, the borrower can request the bank for an extension of OTS in case he already deposited an ample amount of money as per OTS.

Can Banks Fund OTS?

Banks cannot fund the OTS due to the strict guidelines of the Reserve Bank of India for not financing the NPA accounts in any way like funding an OTS or clearing total NPA account liability without OTS.

Can I get the loan after One Time Settlement?

Yes, one can get a loan after one time settlement, but the cost may be higher than the standard market rate. For taking a loan after the OTS, one must take some small loans like auto loans or consumer loans which are much easier to raise and repayment of these small loans again boosts the cibil scores. So improved scoring and a good repayment track give confidence to new lenders.

Does OTS Affect the Cibil?

Yes, closing an NPA account under the OTS affects cibil as it always shows a delinquent loan closed by taking a haircut from the bank, which means the client did not intend to pay the full loan amount and took the benefit of paying at a reduced price which ultimately gives financial loss to the previous bank.

What will be the minimum loan amount we can get under OTS Financing?

Minimum loan borrower can get under OTS financing will be Rs.1 crore.

What will be the maximum loan amount raised under OTS Financing?

Maximum loan is never an issue. Loan amount more than Rs.50cr, 100 cr or Rs.200cr can be raised.

Can i get a loan for one time settlement?

Yes, any person can get a loan for paying one time settlement, if he is offering well sufficient collateral most preferably twice of loan amount required and having running business making good cash flows or getting rental income which will be adequate to service the loan.

How can I get a funding for OTS?

Getting a loan for OTS is off course a difficult task but not an impossible thing. First make sure, you are having ample property value to offer and good business cash flows or other source of income for repayment of this new loan. Then you need to look out for good consultancy company as they are more educated on the subject & ready connections for such transactions. Discuss on payment terms or consultancy fee with the agency ; finalize a agency who works on success fee model rather than asking for upfront payments.

Can I get a OTS loan in Pan India?

Yes if you are living in any metropolitan or major city in India like Mumbai, Bangalore, Pune, Chennai or Delhi, then you eligible for this loan.

Who are eligible for OTS Finance?

Any person living in any city or location of India is eligible for this loan. Plus borrower require to offer twice of collateral valuation for loan amount he required. And additionally a good repayment plan backed with strong business cash flows will resolve the purpose.

Can bank will extend the date of my One time settlement?

Yes in most of the case if borrower paid a ample amount of OTS say 30-40% of settled amount then bank can consider the extension of final repayment date. But it should be supported with proper reason & documentation for required time line.

How much time I can get for repayment?

Generally it is 4-5 years , but in few cases that can extended to 7 years also.

Is this new loan will be paid directly to bank?

Yes this new loan for OTS can be paid directly to bank. Borrower need to submit a OTS letter to new lender or if it is extended then a final outstanding amount letter including interest needs to be submitted.

What is OTS Loan?

OTS Loan is a financial facility to provide the clients with the resources required to settle financial obligations with their previous bank & to close all the legal litigation initiated by the bank to recover the loan. With our OTS Loan service, you can take control of your financial obligations and work towards a debt-free future. Our competitive interest rates and flexible repayment terms ensure that you can secure the necessary funds without adding unnecessary stress to your financial situation.

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