One Time Settlement (OTS)

A borrower may opt for One Time Settlement option to pay the dues if he has failed to make the repayment of loan.

According to the RBI guidelines, banks are required to work towards NPAs (non-performing assets) by negotiating and settling outstanding loans on the value of the assets pledged by the borrower. The settlement plans for NPAs differ by industry. For example, MSMEs, agro-industries and others will have different settlement arrangements. 


Why Maxigain Capital for Your OTS of Stressed Assets?

Over the past few years, many businesses that were once running smoothly have seen a massive change in their cash flows which reduced their ability to service debt.

Our team possesses rich experience and adequate knowledge to handle the situation while negotiating with the lender to get the desired results under OTS move. The essence of One Time Settlement is, the intention and ability to pay the OTS amount and to adhere to the terms of settlement. The OTS may go through multiple rounds of iteration until approved by lenders.

We work out the OTS settlement keeping in view the banking norms and the RBI norms.

We have also organized funds for clients to meet their part requirements.

One Time/Negotiated Settlement of Stressed Assets

Frequently Asked Questions


Yes. One Time Settlement does affect your CIBIL score and it is viewed as a negative credit behavior. So, be very careful when your lending institution or bank offers you one time settlement. OTS should always be taken as a last option to settle dues and pay debts. Better way to improve your CIBIL score is to choose other positive ways to clear debts and loans, instead of OTS.

A loan settlement stays in your CIBIL credit report for 7 years. During these 7 years, you will find that it’s difficult for the lending institutions such as banks, NBFCs etc. to lend you a loan simply because of your CIBIL credit report. Even if they offer you, they can charge higher interest rates because of your past history of inability to settle debts/loans on time.


One Time Settlement may be the option chosen by the borrower to settle his dues and loans if he does not have the ability to repay the loan which has already turned NPA. Banks may or may not negotiate with NPAs (non-performing assets) and settle outstanding loans under an OTS. 


Stressed assets are a group of non-performing assets (NPAs), restructured loans and written-off assets. 


Maxigain Capital has a team of experts who come with plenty of experience and ample of knowledge while negotiating with the lender to get the desired results under OTS move. The essence of One Time Settlement is, the intention and ability to pay the OTS amount and to adhere to the terms of settlement. The OTS may go through multiple rounds of iteration until approved by lenders.

We work out the OTS settlement keeping in view the banking norms. Also the legal documentation is handled by our associate lawyers.

We have also organized funds for clients to meet their part requirements.


OTS settlement helps to avoid long drawn litigation with the banks.


The settlement plans for NPAs differ by industry. For example, MSMEs, agro-industries and others will have different settlement arrangements. 


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