Settlements are good when you are in a sticky situation!
FinLender is India’s No.1 OTS Financing Company with Proven Track Record. When an account becomes NPA, it creates immense problems for the borrower and in catastrophe, their business becomes shut or bank takes the possession of mortgaged assets or even sells collaterals to recover the outstanding loan amount. To avoid this situation, a borrower needs to repay the outstanding loan amount anyhow. For this, one of the best ways is to apply for an OTS in the bank. By the way of OTS, a borrower can save money in form of huge interest, legal charges & penalties.
What is One Time Settlement (OTS)?
Through OTS, if one loan borrower fails to repay the loan to the bank, can get a 25-85% rebate on the same. If one does not pay back the loan to the bank, the customer’s credit score will also be downgraded. To avoid this, OTS is a helpful opportunity for NPA borrowers. The OTS amount needs to be paid within 6 months from the date of approval of OTS, with 25% upfront and balance within 6 months without any interest amount. If the money is paid within a year, then interest at Base Rate from the 6th month to one year will have to be paid. However, in exceptional cases, payment of OTS can be extended up to 2 years within same interest. OTS amount directly depends upon how old is account, valuation of the collaterals, and status of the business.
Solution for OTS Funding or OTS Finance
Once OTS gets approved by the bank, then the borrower can approach Professional Financial for OTS Finance. There are some financial institutes regulated by RBI and SEBI, which can fund an entire or part of an OTS amount as per the requirement and repaying capacity of the borrower. It’s always better to hire an Investment Banking Firm like FinLender as we have experts who are more knowledgeable & experienced on this subject and have ready connections.
Terms & Conditions in OTS Financing
- OTS can be funded 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 or by the liquidation of collateral or the client can give a guarantee of any of his friends or relative.
- Finance is available in all tier 1, 2, and 3 cities of India.
- Flexible repayment tenure will be offered.
- Lowest ROI in the industry.
- Normally, it takes 25-30 days to complete the transaction.
- A moratorium period will be offered.
- Interest can be serviced monthly or quarterly.
We at FinLender help you in raising OTS Finance from our in-house investors (who are registered under RBI) who are interested in investing in such transactions.