When a loan stays overdue for 90 days, banks generally classify it as a non-performing asset (NPA). That is a serious stage, but it is also when many lenders consider a one-time settlement (OTS) to close the account. RBI has a framework that allows lenders to enter compromise settlements under board-approved policies. We help you understand where you stand and how to approach an NPA settlement.
Situations where we can help
- Your loan account has been classified as an NPA
- You received a recall notice or a SARFAESI notice
- You want to propose a one-time settlement (OTS) to the bank
- The account was sent to an asset reconstruction company
- You are unsure whether you qualify for a settlement
How Secure Settle helps with npa loan settlement
- Review the NPA classification date, the outstanding amount and all notices
- Explain how OTS works and the points banks look at
- Help prepare a written OTS proposal and supporting documents
- Support negotiation and review the bank’s sanction letter
- Explain what to collect after payment, including the closure letter and credit report update
What to do right now
- Do not ignore a SARFAESI notice. It carries a strict 60-day period.
- Never pay on a verbal assurance. Wait for a written sanction.
- Make sure every payment is credited and acknowledged by the bank.
Frequently asked questions
Often yes. Lenders can settle NPA accounts under their board-approved policies, usually through a one-time settlement. Eligibility and terms differ between lenders, and cases involving wilful default or fraud may be restricted.
An OTS is an agreement where the borrower pays a negotiated lump sum, or a short schedule of payments, to close the account in full and final settlement.
The account is reported as settled. This stays on your record and can affect new borrowing, so plan for it.
This page is general information and not legal advice. Outcomes depend on the facts of each case and cannot be guaranteed.