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Government launched One Time Settlement Scheme for defaulters in Noida

The OTS Scheme is a one-time settlement program that was extremely useful during the pandemic. If a loan borrower fails to repay the loan to the bank, they can receive a 25-85% rebate under this arrangement.

“We started using the OTS method on Wednesday. The 100 percent surcharge waiver is available to all clients with a capacity of less than 5 KW “VN Singh, the chief zonal engineer of Pashchimanchal Vidyut Vitran Nigam Limited in Noida, explained the concept.

Payment of One Time Scheme

Customers with non-performing assets (NPAs) in a bank can use the online OTS services in the bank. If a customer fails to repay a loan to the bank, his or her credit score will be affected. For NPA debtors, OTS can assist them to avoid these problems.

The OTS sum must be paid within 6 months of the date of OTS approval, with 25% paid up front and the balance paid within 6 months without interest. If the money is paid within a year, interest at Base Rate will be due from the 6th month to the end of the year. However, in extraordinary circumstances, OTS payments can be deferred for up to two years with interest.

Factors to consider when making an OTS offer

  1. Value of the securities that can be realized
  2. Current state of the unit
  3. Possibility of a better recovery through other ways
  4. Provisions made
  5. Other lenders’ consideration, if any
  6. Financial Impact of Sacrifice
  7. Goal of OTS is for both parties to benefit.

How To apply for the OTS Scheme

  • The NPA customer must ensure that his or her mobile number is registered with the bank for SMS banking services in order to apply for the OTS Scheme online.
  • Because the bank will send an OTP to the registered mobile number, this is crucial.
  • A separate portal for OTS applications will be available on the bank’s website.
  • The NPA borrower must fill out the applicant’s name, account number, country, e-mail address, outstanding balance, OTS offer, captcha code, and other information on that page.
  • After you’ve completed the page, you’ll be taken to another window where you can apply for OTS. On the same website, you can also check the status of your OTS application.

Also read: Monthly Income Scheme (MIS): Central govt. launched an Indian postal service investment scheme

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